v3.26.1
Derivatives and Hedging
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
Except as mentioned below, the Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company does not hold or issue financial instruments for speculative or trading purposes. The Company does not offset derivative assets and liabilities within the consolidated balance sheets.
Interest Rate Swaps
The Company is subject to market risk exposure arising from changes in interest rates on debt, which bears interest at variable rates. In order to protect against potential higher interest costs resulting from anticipated increases in the variable rates, the Company, from time to time, has entered into interest rate swap contracts (discussed below) that fixed the benchmark interest rate with respect to a portion of its variable rate debt.
The Company has following interest rate swap agreements that had fair value liability of $16 million as of March 31, 2026:
Notional Amount
(in $ millions)		PeriodFixed Interest Rate
$400September 2024 to July 20284.2075 %
$500September 2024 to July 20294.209 %
Under ASC 815, Derivatives and Hedging, the fair value gain (loss) of the Company's terminated interest rate swaps recorded in accumulated other comprehensive income (loss) will be proportionately included as interest expense, in the consolidated statement of operations until July 2029 as the interest payments are made over this period. Further, the Company has determined that its existing interest rate swap contracts, designated as cash flow hedges, are highly effective at offsetting the increases in cash outflows when the three-month SOFR exceeds respective fixed rates under the contracts. Changes in the fair value of the interest rate swaps, net of tax, are recognized in other comprehensive income (loss) and are reclassified out of accumulated other comprehensive income (loss) into interest expense when the hedged interest obligations affect earnings.
Cross Currency Interest Rate Swaps and Net Investment Hedges

During the three months ended March 31, 2026, the Company had a fixed-to-fixed cross currency interest rate swap ("CCS") contract under which the Company will receive fixed interest at 7.5% per annum on a USD notional amount of $251 million and will pay fixed interest of 5.6390% per annum on EUR notional amount of €240 million. Notional amounts in the respective currencies are deemed to be exchanged at the beginning and end of the swap period. The swap's maturity date is July 26, 2029. Interest settlements under the CCS occur semi-annually in January and July of each year, that commenced on January 26, 2025, and end on July 26, 2029. The fair value (liability) of this CCS as of March 31, 2026 was $22 million.

The Company has designated the CCS contract as a net investment hedge, hedging foreign exchange translation risk related to a portion of its investments in EUR functional currency denominated subsidiaries on an after-tax basis. The Company has elected the spot method for measuring hedge effectiveness. As a result, the change in the fair value of the CCS contract attributable to the changes in the spot rates are recorded in the cumulative translation adjustment (CTA) section of other comprehensive income (loss). The initial value of the excluded components are recognized in interest expense under a systematic and rational method in accordance with ASC 815. Any difference between the change in fair value of the excluded components and the amounts recognized in earnings under the swap accrual process are also reported in the CTA section of other comprehensive income (loss). Amounts related to the CCS representing net periodic interest accruals are recognized in “Interest expenses,” on the Company's consolidated statements of operations.

Earnout Shares
The Company has issued and outstanding earnout shares which are accounted for as derivative instruments (see note 10 – Earnout Shares).
The following table presents the balance sheet location and fair value of the Company’s derivative instruments, on a gross basis, under ASC 815:
(in $ millions)Balance sheet
Location		March 31, 2026December 31, 2025
Derivatives designated as hedging instruments
Interest rate swapsOther non-current liabilities(16)(24)
Cross currency interest rate swaps
Other non-current liabilities
(22)(30)
Derivatives not designated as hedging instruments
Earnout sharesEarnout derivative liabilities(6)(37)
The table below presents the impact of changes in fair values of derivatives on other comprehensive (loss) income and on net income:
Amount of gain/(loss) recognized in
other comprehensive income (loss)		Statement of
operations location		Amount of gain/(loss) recognized in
 statements of operations
Three months ended
March 31,		Three months ended
March 31,
2026202520262025
Derivatives designated as hedging instruments
Interest rate swaps$8 $(15)NA— — 
Interest rate swaps re-classed to consolidated statements of operations(1)(4)Interest expense$1 $4 
Cross currency interest rate swap8 (7)NA— — 
Derivatives not designated as hedging instruments
Foreign currency forward contracts— — 
Other income (loss), net
— 9 
Earnout Shares— — Fair value movement on earnout derivative liabilities31 74 
$32 $87 
The Company expects $5 million of gain on the interest rate swap contracts to be reclassified from accumulated other comprehensive loss to net earnings as a credit to interest expense within the next 12 months.