v3.26.1
Derivative instruments and hedging activities
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments and hedging activities Derivative instruments and hedging activities
(a)Risk management objective of using derivatives
The Company manages certain economic risks, including interest rate, foreign currency, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and with the use of derivative financial instruments.
(b)Cash flow hedges of interest rate and foreign currency risk
The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements and to mitigate the potential volatility to interest expense. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for a premium.
In addition, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future cash amounts due to changes in foreign currency rates. The impacts of these foreign currency derivative instruments on the condensed consolidated financial statements of the Company are insignificant.
(c)Designated hedges - interest rate contracts
As of March 31, 2026, the Company had the following effective interest rate derivatives that were designated as cash flow hedging instruments.
Number of InstrumentsNotionalEffective DateMaturity Date
Interest rate derivatives:(in millions)
Interest rate swap2USD500 December 31, 2025February 15, 2028
Interest rate swap3USD750 January 9, 2026February 15, 2028
The table below presents the effect of the Company’s interest rate derivatives that are designated as hedging instruments in the condensed consolidated statements of operations and comprehensive income (loss) (in millions). Gain (loss) reclassified from accumulated other comprehensive income (“AOCI”) into earnings for interest rate contracts is presented in Interest expense, net.
Interest Rate Derivatives in Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in OCI on DerivativesAmount of Gain (Loss) Reclassified from AOCI into Earnings
Three Months Ended March 31,Three Months Ended March 31,
2026202520262025
Included in effectiveness testing$8 $1 $2 $19 
The estimated net amount of existing gains (losses) that are reported in Accumulated other comprehensive income (loss) as of March 31, 2026 that is expected to be reclassified into earnings within the next 12 months is $6 million.
(d)Balance sheet presentation - interest rate contracts
The table below presents the fair value of the Company’s interest rate derivative contracts as well as their classification in the condensed consolidated balance sheets:
(in millions)March 31, 2026December 31, 2025
Prepaid expenses and other current assets$6 $3 
Other assets$4 $—