v3.25.2
FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 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
$898 $220 
Cross currency basis swaps315 — 
Total derivative instruments designated as hedges of net investments$1,213 $220 
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$572 $572 
Total derivative instruments not designated as hedges$572 $572 
The following table summarizes the details of the cross-currency basis swaps.
(in millions)
TenorNotional ValueInterest RateMaturity Date
5 Year$550 4.519 %June 12, 2030
7 Year$275 4.415 %July 1, 2032
10 Year$275 4.301 %July 1, 2035
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 June 30,
20252024
(in millions)Cost of products soldInterest expense, netOther expense (income), netCost of products soldInterest expense, netOther expense (income), 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$446 $24 $1 $473 $17 $(1)
(Gain) loss on Cash Flow Hedges reclassified from AOCI into income
Interest rate swaps$— $1 $— $— $1 $— 
(Gain) loss on Hedges of Net Investment
Cross currency basis swaps$— $— $(2)$— $— $(1)
Foreign exchange forward contracts— — (6)— — (6)
(Gain) loss on Fair Value Hedges:
Interest rate swaps$— $2 $— $— $2 $— 
Foreign exchange forward contracts— — — — — — 
(Gain) loss on Derivative Instruments not Designated as Hedges
Foreign exchange forward contracts$— $— $13 $— $— $— 
Amount of Gain or (Loss) Recognized in AOCIAmount of Gain or (Loss) Reclassified from AOCI into Income
Three Months Ended June 30,Consolidated Statements of Operations LocationThree Months Ended June 30,
(in millions)2025202420252024
Cash Flow Hedges
Interest rate swaps— — Interest expense, net(1)(1)
Hedges of Net Investments
Cross currency basis swaps$(24)$4 Other expense (income), net$— $— 
Foreign exchange forward contracts(91)(6)Other expense (income), net— — 
Six Months Ended June 30,
20252024
(in millions)Cost of products soldInterest expense, netOther expense (income), netCost of products soldInterest expense, netOther expense (income), 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$859 $43 $1 $920 $35 $(8)
(Gain) loss on Cash Flow Hedges reclassified from AOCI into income
Interest rate swaps$— $2 $— $— $2 $— 
(Gain) loss on Hedges of Net Investment
Cross currency basis swaps$— $— $(2)$— $— $(2)
Foreign exchange forward contracts— — (12)— — (12)
(Gain) loss on Fair Value Hedges:
Interest rate swaps$— $3 $— $— $4 $— 
Foreign exchange forward contracts— — — — — (1)
(Gain) loss on Derivative Instruments not Designated as Hedges
Foreign exchange forward contracts$— $— $12 $— $— $— 

Amount of Gain or (Loss) Recognized in AOCIAmount of Gain or (Loss) Reclassified from AOCI into Income
Six Months Ended June 30,Consolidated Statements of Operations LocationSix Months Ended June 30,
(in millions)2025202420252024
Cash Flow Hedges
Interest rate swaps— — Interest expense, net(2)(2)
Hedges of Net Investments
Cross currency basis swaps$(29)$8 Other expense (income), net$— $— 
Foreign exchange forward contracts(107)32 Other expense (income), net— — 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The fair value and the financial statement presentation of the Company’s derivatives in the Consolidated Balance Sheets were as follows:
June 30, 2025
(in millions)Prepaid Expenses and Other Current AssetsOther Noncurrent AssetsAccrued LiabilitiesOther Noncurrent Liabilities
Designated as Hedges:
Foreign exchange forward contracts$— $— $17 $66 
Interest rate swaps— — 4 11 
Cross currency basis swaps4 — — 15 
Total$4 $— $21 $92 
Not Designated as Hedges:
Foreign exchange forward contracts$4 $— $16 $— 
Total$4 $— $16 $— 
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 June 30, 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$4 $— $4 $(4)$— $— 
Total assets$4 $— $4 $(4)$— $— 
Liabilities
Foreign exchange forward contracts$99 $— $99 $(4)$— $95 
Interest rate swaps15 — 15 — — 15 
Cross currency basis swaps11 — 11 — — 11 
Total liabilities$125 $— $125 $(4)$— $121 

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