v3.25.1
FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables)
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The following summarizes the notional amounts of hedges of net investments, fair value hedges, and derivative instruments not designated as hedges for accounting purposes by derivative instrument type at March 31, 2025 and the notional amounts expected to mature during the next 12 months.
(in millions)Aggregate Notional AmountAggregate Notional Amount Maturing within 12 Months
Hedges of Net Investments
Foreign exchange forward contracts
$830 $200 
Cross currency basis swaps289 — 
Total derivative instruments designated as hedges of net investments$1,119 $200 
Fair Value Hedges
Interest rate swaps$150 $— 
Foreign exchange forward contracts — — 
Total derivative instruments designated as fair value hedges$150 $— 
Derivative Instruments not Designated as Hedges
Foreign exchange forward contracts$732 $732 
Total derivative instruments not designated as hedges$732 $732 
Schedule of Derivative Instruments
The effect of derivative hedging instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss were as follows:
Three Months Ended March 31,
20252024
(in millions)Cost of products soldInterest expense, netOther (income) expense, netCost of products soldInterest expense, netOther (income) expense, net
Total amounts of line items presented in the Statement of Operations in which the effects of cash flow, net investment or fair value hedges are recorded$413 $19 $— $447 $18 $(7)
(Gain) loss on Cash Flow Hedges reclassified from AOCI into income
Foreign exchange forward contracts$— $— $— $— $— $— 
Interest rate swaps— 1 — — — — 
(Gain) loss on Hedges of Net Investment
Cross currency basis swaps$— $— $— $— $— $(1)
Foreign exchange forward contracts— — (6)— — (6)
(Gain) loss on Fair Value Hedges:
Interest rate swaps$— $1 $— $— $2 $— 
Foreign exchange forward contracts— — — — — (1)
(Gain) loss on Derivative Instruments not Designated as Hedges
Foreign exchange forward contracts$— $— $— $— $— $(1)
Amount of Gain or (Loss) Recognized in AOCIAmount of Gain or (Loss) Reclassified from AOCI into Income
Three Months Ended March 31,Consolidated Statements of Operations LocationThree Months Ended March 31,
(in millions)2025202420252024
Hedges of Net Investments
Cross currency basis swaps$(5)$4 Other expense (income), net$— $— 
Foreign exchange forward contracts(16)38 Other expense (income), net— — 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The fair value and the financial statement presentation of the Company's derivatives in the Consolidated Balance Sheets were as follows:
March 31, 2025
(in millions)Prepaid Expenses and Other Current AssetsOther Noncurrent AssetsAccrued LiabilitiesOther Noncurrent Liabilities
Designated as Hedges:
Foreign exchange forward contracts$3 $1 $— $3 
Interest rate swaps— — 5 12 
Cross currency basis swaps3 10 — — 
Total$6 $11 $5 $15 
Not Designated as Hedges:
Foreign exchange forward contracts$14 $— $11 $— 
Total$14 $— $11 $— 
December 31, 2024
(in millions)Prepaid Expenses and Other Current AssetsOther Noncurrent AssetsAccrued LiabilitiesOther Noncurrent Liabilities
Designated as Hedges:
Foreign exchange forward contracts$5 $9 $— $1 
Interest rate swaps— — 4 17 
Cross currency basis swaps4 14 — — 
Total$9 $23 $4 $18 
Not Designated as Hedges:
Foreign exchange forward contracts$4 $— $8 $— 
Total$4 $— $8 $— 
Schedule of Offsetting Derivative Assets and Liabilities
Offsetting of financial assets and liabilities under netting arrangements at March 31, 2025 were as follows:
Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)Gross Amounts RecognizedGross Amount Offset in the Consolidated Balance SheetsNet Amounts Presented in the Consolidated Balance SheetsFinancial InstrumentsCash Collateral Received/PledgedNet Amount
Assets
Foreign exchange forward contracts$18 $— $18 $(13)$— $5 
Cross currency basis swaps13 — 13 (6)— 7 
Total assets$31 $— $31 $(19)$— $12 
Liabilities
Foreign exchange forward contracts$14 $— $14 $(9)$— $5 
Interest rate swaps17 — 17 (10)— 7 
Total liabilities$31 $— $31 $(19)$— $12 

Offsetting of financial assets and liabilities under netting arrangements at December 31, 2024 were as follows:
Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)Gross Amounts RecognizedGross Amount Offset in the Consolidated Balance SheetsNet Amounts Presented in the Consolidated Balance SheetsFinancial InstrumentsCash Collateral Received/PledgedNet Amount
Assets
Foreign exchange forward contracts$18 $— $18 $(5)$— $13 
Cross currency basis swaps18 — 18 (6)— 12 
Total assets$36 $— $36 $(11)$— $25 
Liabilities
Foreign exchange forward contracts$9 $— $9 $(4)$— $5 
Interest rate swaps21 — 21 (7)— 14 
Total liabilities$30 $— $30 $(11)$— $19