Fair Value Measurement |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement | 11. Fair Value Measurement The carrying values, net of deferred debt issuance costs, and estimated fair values of debt with fixed interest rates (classified as Level 2 in the fair value hierarchy) were as follows:
The fair value of the Company's debt with fixed interest rates is based on quoted market prices. With the exception of debt with fixed interest rates, the carrying amounts of all other debt instruments approximate their fair values. The variable nature and repricing dates of the receivables securitization facilities and the revolving credit facility result in their carrying values approximating their fair values. Both the revolving credit facility and the receivables securitization facilities are classified as Level 2 in the fair value hierarchy. 11. Fair Value Measurement - continued Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The Company measures and records certain assets and liabilities, including derivative instruments at fair value. The following table summarizes the fair value of these instruments, which are measured at fair value on a recurring basis, by level, within the fair value hierarchy:
There were no assets or liabilities, which are measured at fair value on a recurring basis, classified as Level 3 in the fair value hierarchy for the periods presented. The fair value of listed financial assets is determined by reference to their bid price at the reporting date. Unlisted financial assets are valued using recognized valuation techniques for the underlying security including discounted cash flows and similar unlisted equity valuation models. The fair value of foreign currency forwards, cross currency swaps and energy hedging contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds). The fair value of natural gas commodity derivatives is estimated based on observable inputs such as commodity future prices. We have financial instruments related to supplemental retirement savings plans (“Supplemental Plans”) that are recognized at fair value. These Supplemental Plans are nonqualified deferred compensation plans where participants’ accounts are credited with investment gains and losses in accordance with their investment election or elections. The investment alternatives under the Supplemental Plans are generally similar to investment alternatives available under 401(k) plans. Assets and liabilities held in respect of these Supplemental Plans were carried at $203 million and $171 million, respectively, as of June 30, 2025 (December 31, 2024: $185 million and $168 million, respectively). 11. Fair Value Measurement - continued Assets and Liabilities Measured and Recorded at Fair Value on a Non-recurring Basis In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a non-recurring basis. This includes assets acquired and liabilities assumed as a result of business combinations or non- monetary exchanges, situations where events or changes in circumstances indicate the carrying value may not be recoverable (including restructuring efforts), or when they are deemed to be other than temporarily impaired. These assets include property, plant and equipment, goodwill and other intangible assets, assets and disposal groups held for sale and other non-current assets. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, observable price for similar assets, market comparables, and discounted cash flow projections. These non-recurring fair value measurements are considered to be Level 3 in the fair value hierarchy. For more details on the measurement of assets acquired and liabilities assumed as part of business combinations affecting the period balances, refer to “Note 2. Acquisitions”. Accounts Receivable Monetization Agreements The following table presents a summary of the accounts receivable monetization agreements for the six months ended June 30, 2025:
Receivables sold under these accounts receivable monetization agreements as of the balance sheet date were approximately $713 million. Cash proceeds or payments related to the receivables sold are included in “Net cash provided by operating activities” in the Condensed Consolidated Statements of Cash Flows in the “Accounts receivable” line item. The expense related to the sale of receivables was $10 million and $20 million for the three and six months ended June 30, 2025, respectively. The expense recorded may vary depending on current rates and levels of receivables sold and is recorded in “Other (expense) income, net” in the Condensed Consolidated Statements of Operations. Although the sales are made without recourse, we maintain continuing involvement with the receivables sold as we provide collections services related to the transferred assets. The associated servicing liability is not material given the high credit quality of the customers underlying the receivables and the anticipated short collection period.
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