The Company is subject to interest rate risk related to the Senior Secured Credit Facility and enters into interest rate swaps that are based on LIBOR to manage a portion of this exposure. The interest rate swaps are designated as cash flow hedges that qualify for hedge accounting under the hypothetical derivative method. Fair value adjustments are recorded as a component of Accumulated other comprehensive loss, net of tax (“AOCL”) in the Condensed Consolidated Balance Sheets. Balances in AOCL are reclassified to earnings when transactions related to the underlying risk are settled. As of September 30, 2022, the Company held interest rate swaps effective from September 2019 to September 2025 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 3.04% and interest rate swaps effective from September 2022 to September 2025 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 2.82%. See "Note F. Fair Value of Financial Instruments” for information regarding the fair value of the Company’s interest rate swaps.

The following tabular disclosures further describe the Company’s interest rate derivatives qualifying and designated for hedge accounting and their impact on the financial condition of the Company (dollars in millions):


		Fair Value
	Balance Sheet Location	September 30, 2022		December 31, 2021
Derivative Assets:
Interest rate swaps	Other current assets	$	6	$	—
	Other non-current assets		13		—
Total derivative assets		$	19	$	—

Derivative Liabilities:
Interest rate swaps	Other current liabilities	$	—	$	10
	Other non-current liabilities		—		21
Total derivative liabilities		$	—	$	31

The balance of net derivative gains and (losses) recorded in AOCL as of September 30, 2022 and December 31, 2021 was $19 million and ($31) million, respectively. See "Note O. Accumulated Other Comprehensive Loss” for information regarding activity recorded as a component of AOCL during the three and nine months ended September 30, 2022 and 2021. As of September 30, 2022, the Company had $3 million of derivative gains recorded in AOCL expected to be reclassified to earnings within the next twelve months.