DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value of outstanding derivative instruments

The fair value of our outstanding derivative instruments as of September 30, 2022 and December 31, 2021 was as follows:


	Balance Sheet Location	September 30, 2022		December 31, 2021
		(In millions)
Derivative Assets:
Foreign currency exchange contracts designated as hedging instruments	Other current assets	$	638	$	205
Foreign currency exchange contracts designated as hedging instruments	Other assets (non-current)	223		21
Foreign currency exchange contracts not designated as hedging instruments	Other current assets	154		78
Total derivative assets		$	1,015	$	304

Derivative Liabilities:
Foreign currency exchange contracts designated as hedging instruments	Other current liabilities	$	39	$	27

Foreign currency exchange contracts not designated as hedging instruments	Other current liabilities	148		103
Total derivative liabilities		$	187	$	130

Schedule of offsetting assets

The following table provides the collateral posted and received:


	September 30, 2022		December 31, 2021
	(In millions)
Cash collateral posted(1)	$	9	$	5
Cash collateral received(2)	$	639	$	209

(1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets.

(2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets.

Schedule of offsetting liabilities

The following table provides the collateral posted and received:


	September 30, 2022		December 31, 2021
	(In millions)
Cash collateral posted(1)	$	9	$	5
Cash collateral received(2)	$	639	$	209

(1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets.

(2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets.

Gains or losses related to derivative instruments designated as hedging instruments

The following table provides the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:


	Three Months Ended September 30,
	2022				2021
	(In millions)
	Net revenues		Other income (expense), net		Net revenues		Other income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded	$	6,846	$	460	$	6,182	$	122

Gains (losses) on derivatives in cash flow hedging relationship:
Amount of gains (losses) on foreign currency exchange contracts reclassified from AOCI	156		—		(44)		—
Gains on derivatives in net investment hedging relationship:
Amount of gains on foreign currency exchange contracts excluded from the assessment of effectiveness	—		27		—		—
Gains (losses) on derivatives not designated as hedging instruments:
Amount of gains on foreign currency exchange contracts	—		52		—		111
Amount of losses on equity derivative contracts (1)	—		(174)		—		—
Total gains (losses)	$	156	$	(95)	$	(44)	$	111

(1) During the three months ended September 30, 2022, equity derivative contracts were entered into and matured which related to the sale of marketable equity securities related to a strategic investment.


	Nine Months Ended September 30,
	2022				2021
	(In millions)
	Net revenues		Other income (expense), net		Net revenues		Other income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded	$	20,135	$	(337)	$	18,453	$	181

Gains (losses) on derivatives in cash flow hedging relationship:
Amount of gains (losses) on foreign exchange contracts reclassified from AOCI	310		—		(192)		—
Gains on derivatives in net investment hedging relationship:
Amount of gains on foreign exchange contracts excluded from the assessment of effectiveness	—		53		—		—
Gains (losses) on derivatives not designated as hedging instruments:
Amount of gains on foreign exchange contracts	—		160		—		109
Amount of losses on equity derivative contracts (1)	—		(174)		—		—
Total gains (losses)	$	310	$	39	$	(192)	$	109

(1) During the nine months ended September 30, 2022, equity derivative contracts were entered into and matured which related to the sale of marketable equity securities related to a strategic investment. The cash flows associated with the equity derivative contracts were classified in cash flows from investing activities on our condensed consolidated statements of cash flows.

The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income (loss):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In millions)
Unrealized gains on foreign exchange contracts designated as cash flow hedges	$	294	$	160	$	658	$	242
Unrealized gains on foreign exchange contracts designated as net investment hedges	97		—		253		—
Total unrealized gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss)	$	391	$	160	$	911	$	242

Recognized gains or losses related to derivative instruments not designated as hedging instruments

The following table provides the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:


	Three Months Ended September 30,
	2022				2021
	(In millions)
	Net revenues		Other income (expense), net		Net revenues		Other income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded	$	6,846	$	460	$	6,182	$	122

Gains (losses) on derivatives in cash flow hedging relationship:
Amount of gains (losses) on foreign currency exchange contracts reclassified from AOCI	156		—		(44)		—
Gains on derivatives in net investment hedging relationship:
Amount of gains on foreign currency exchange contracts excluded from the assessment of effectiveness	—		27		—		—
Gains (losses) on derivatives not designated as hedging instruments:
Amount of gains on foreign currency exchange contracts	—		52		—		111
Amount of losses on equity derivative contracts (1)	—		(174)		—		—
Total gains (losses)	$	156	$	(95)	$	(44)	$	111


	Nine Months Ended September 30,
	2022				2021
	(In millions)
	Net revenues		Other income (expense), net		Net revenues		Other income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded	$	20,135	$	(337)	$	18,453	$	181

Gains (losses) on derivatives in cash flow hedging relationship:
Amount of gains (losses) on foreign exchange contracts reclassified from AOCI	310		—		(192)		—
Gains on derivatives in net investment hedging relationship:
Amount of gains on foreign exchange contracts excluded from the assessment of effectiveness	—		53		—		—
Gains (losses) on derivatives not designated as hedging instruments:
Amount of gains on foreign exchange contracts	—		160		—		109
Amount of losses on equity derivative contracts (1)	—		(174)		—		—
Total gains (losses)	$	310	$	39	$	(192)	$	109

Schedule of notional amounts of outstanding derivatives

The following table provides the notional amounts of our outstanding derivatives:


	September 30, 2022		December 31, 2021
	(In millions)
Foreign exchange contracts designated as hedging instruments	$	8,341	$	5,349
Foreign exchange contracts not designated as hedging instruments	10,249		20,414
Total	$	18,590	$	25,763