v3.25.2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Derivative Assets at Fair Value
The following table presents the gross fair values of our outstanding derivative instruments.

Fair Value of DerivativesJune 30, 2025December 31, 2024
Gross NotionalFair Value – AssetsFair Value – LiabilitiesGross NotionalFair Value – AssetsFair Value – Liabilities
Foreign currency forward contracts$1,632 $18 $59 $1,210 $43 $11 
Derivatives accounted for as cash flow hedges1,632 18 59 1,210 43 11 
Cross-currency swaps(1)
2,574 25 114 1,995 15 46 
Foreign currency forward and options contracts2,694 30 27 1,731 30 18 
Derivatives accounted for as net investment hedges5,268 55 141 3,726 45 64 
Interest rate swaps(1)
2,700 41 6 2,700 — 51 
Derivatives accounted for as fair value hedges2,700 41 6 2,700 — 51 
Foreign currency forward contracts4,093 31 19 3,925 11 29 
Other derivatives(1) (2)
362 33 8 370 47 — 
Derivatives not designated as hedging instruments4,455 64 28 4,294 57 29 
Total derivatives$14,054 $178 $232 $11,930 $145 $155 
(1) As of June 30, 2025, accrued interest is included in the above fair value and is not considered material. As of December 31, 2024, accrued interest is excluded from the above fair value and is not considered material.
(2) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
Schedule of Derivative Liabilities at Fair Value
The following table presents the gross fair values of our outstanding derivative instruments.

Fair Value of DerivativesJune 30, 2025December 31, 2024
Gross NotionalFair Value – AssetsFair Value – LiabilitiesGross NotionalFair Value – AssetsFair Value – Liabilities
Foreign currency forward contracts$1,632 $18 $59 $1,210 $43 $11 
Derivatives accounted for as cash flow hedges1,632 18 59 1,210 43 11 
Cross-currency swaps(1)
2,574 25 114 1,995 15 46 
Foreign currency forward and options contracts2,694 30 27 1,731 30 18 
Derivatives accounted for as net investment hedges5,268 55 141 3,726 45 64 
Interest rate swaps(1)
2,700 41 6 2,700 — 51 
Derivatives accounted for as fair value hedges2,700 41 6 2,700 — 51 
Foreign currency forward contracts4,093 31 19 3,925 11 29 
Other derivatives(1) (2)
362 33 8 370 47 — 
Derivatives not designated as hedging instruments4,455 64 28 4,294 57 29 
Total derivatives$14,054 $178 $232 $11,930 $145 $155 
(1) As of June 30, 2025, accrued interest is included in the above fair value and is not considered material. As of December 31, 2024, accrued interest is excluded from the above fair value and is not considered material.
(2) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
Schedule of Effect of Derivatives Instruments on Statement of Financial Position and Statement of Income
The following table presents amounts recorded in Long-term borrowings in the Condensed Consolidated Statements of Financial Position related to cumulative basis adjustment for fair value hedges.

June 30, 2025December 31, 2024
Carrying amountCumulative basis adjustment included in the carrying amount
Carrying amount
Cumulative basis adjustment included in the carrying amount
Long-term borrowings designated in fair value hedges
$2,732 $37 $2,644 $(51)
The tables below present the gains (losses) on our derivative financial instruments and hedging activity in the Condensed Consolidated Statements of Income.

Derivative Financial Instruments and Hedging Activity
For the three months ended June 30, 2025
Cost of productsCost of services
SG&A
Interest and other financial charges – net
Other(4)
Foreign currency forward contracts
$(3)$(1)$— $— $— 
Effects of cash flow hedges(3)(1)— — — 
Cross-currency swaps— — — 6 — 
Foreign currency forward and options contracts
— — — 5 — 
Effects of net investment hedges(1)
— — — 11 — 
Interest rate swaps(2)
— — — 24 — 
Debt basis adjustment on Long-term borrowings
— — — (28)— 
Effects of fair value hedges
— — — (4)— 
Foreign currency forward contracts
44 12 — — (1)
Other derivatives(3)
— — 4 — 6 
Effects of derivatives not designated as hedging instruments
44 12 4 — 5 

For the three months ended June 30, 2024
Cost of productsCost of servicesSG&A
Interest and other financial charges – net
Other(4)
Foreign currency forward contracts$1 $— $— $— $— 
Effects of cash flow hedges1 — — — — 
Cross-currency swaps— — — 8 — 
Foreign currency forward and option contracts— — — 2 — 
Effects of net investment hedges(1)
— — — 11 — 
Interest rate swaps(2)
— — — (21)— 
Debt basis adjustment on Long-term borrowings— — — 14 — 
Effects of fair value hedges— — — (7)— 
Foreign currency forward contracts5 1 — — — 
Other derivatives(3)
— — 1 — 3 
Effects of derivatives not designated as hedging instruments5 1 1 — 3 
For the six months ended June 30, 2025
Cost of productsCost of services
SG&A
Interest and other financial charges – net
Other(4)
Foreign currency forward contracts
$(5)$(1)$— $— $— 
Effects of cash flow hedges(5)(1)— — — 
Cross-currency swaps— — — 14 — 
Foreign currency forward and options contracts
— — — 8 — 
Effects of net investment hedges(1)
— — — 22 — 
Interest rate swaps(2)
— — — 80 — 
Debt basis adjustment on Long-term borrowings
— — — (88)— 
Effects of fair value hedges
— — — (8)— 
Foreign currency forward contracts
59 16 — — (1)
Other derivatives(3)
— — 1 — (9)
Effects of derivatives not designated as hedging instruments
59 16 1 — (10)

For the six months ended June 30, 2024
Cost of productsCost of servicesSG&AInterest and other financial charges – net
Other(4)
Foreign currency forward contracts$— $— $— $— $— 
Effects of cash flow hedges— — — — — 
Cross-currency swaps— — — 17 — 
Foreign currency forward and option contracts— — — 4 — 
Effects of net investment hedges(1)
— — — 21 — 
Interest rate swaps(2)
— — — (66)— 
Debt basis adjustment on Long-term borrowings— — — 52 — 
Effects of fair value hedges— — — (13)— 
Foreign currency forward contracts(7)(2)— — — 
Other derivatives(3)
— — 5 — 23 
Effects of derivatives not designated as hedging instruments(7)(2)5 — 23 
(1) Changes in fair value related to components other than the spot rate are excluded from effectiveness testing for the three and six months ended June 30, 2025 and 2024.
(2) Amount includes interest expense on interest rate derivatives of $(4) million and $(7) million for the three months ended June 30, 2025 and 2024, respectively, and $(8) million and $(13) million for the six months ended June 30, 2025 and 2024, respectively.
(3) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
(4) Amounts are inclusive of gains (losses) in Other (income) expense – net in the Condensed Consolidated Statements of Income.
Schedule of Derivative Pre-tax Gains (Losses) Recognized in OCI
The table below presents the pre-tax gains (losses) recognized in OCI associated with the Company’s cash flow and net investment hedges.

Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
For the three months ended June 30
For the six months ended June 30
2025202420252024
Cash flow hedges$(47)$11 $(62)$31 
Net investment hedges(1)
(189)27 (254)59 
(1) Amounts recognized in OCI for excluded components for the periods presented were immaterial.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table represents assets and liabilities that are recorded and measured at fair value on a recurring basis.

Fair Value of Assets and Liabilities Measured on a Recurring Basis
As of June 30, 2025
As of December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Money market funds
$— $256 $— $256 $— $312 $— $312 
Investment securities26 — — 26 32 — — 32 
Derivatives
— 178 — 178 — 145 — 145 
Liabilities:
Derivatives
— 232 — 232 — 155 — 155 
Contingent consideration— — 39 39 — — 34 34