v3.25.3
Financial Instruments and Fair Value Measures (Tables)
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of financial assets and liabilities accounted for at fair value on recurring basis The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:
Fair Value
Notional AmountsAssetsLiabilities
September 30,
2025
December 31, 2024
September 30,
2025
December 31, 2024
September 30,
2025
December 31, 2024
Designated instruments:
Designated forward currency exchange contracts$465 $331 $13 $4 (a)$8 $6 (c)
Designated cross-currency swaps2,040 1,515 2 82 (b)170 — (d)
Designated interest-rate swaps675 — — — (b)17 — (d)
Total designated instruments3,180 1,846 15 86 195 6 
Undesignated instruments:
Undesignated interest rate swaps— 470 — 9 (b)— 3 (d)
Undesignated forward currency exchange contracts424 597 1 9 (a)2 2 (c)
Total undesignated instruments424 1,067 1 18 2 5 
Total designated and undesignated instruments$3,604 $2,913 $16 $104 $197 $11 
(a) Recorded within Other current assets
(b) Recorded within Other assets
(c) Recorded within Accrued liabilities
(d) Recorded within Other liabilities
Effect of derivatives on the income statement
The following tables present the pretax impact that changes in the fair values of derivatives designated as cash flow hedges and net investment hedges had on OCI, AOCI and earnings:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(Dollars in millions)
Cash flow hedges
  Gain (loss) reclassified from AOCI to
   income:
     Cost of goods sold$(1)$1 $(1)$(3)
     Interest expense (1)
— 1 (4)— 
     Non-operating income (2)
1 23 65 10 
  Gain (loss) recognized in other comprehensive
   income (loss)		6 (1)(3)1 
Net investment hedges
  Gain (loss) recognized in other comprehensive
   income (loss)		6 (35)(171)(2)
(1) Includes a settlement loss of $3 million for the nine months ended September 30, 2024.
(2) Includes a settlement loss of $4 million for the nine months ended September 30, 2024.
Derivatives not designated as hedging instruments The following table summarizes the pretax gain (loss) that changes in the fair values of derivatives not designated as hedging instruments had on earnings:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Contract TypeLocation(Dollars in millions)
Interest rate swaps
Interest expense (1)
$— $(4)$— $9 
Forward currency exchange contractsNon-operating income(1)(5)(27)8 

(1) Includes interest income of $5 million, partially offset by marked-to-market remeasurement losses of $9 million, for the three months ended September 30, 2024. Includes settlement gain of $21 million and interest income of $21 million, partially offset by marked-to-market remeasurement losses of $33 million, for the nine months ended September 30, 2024.
Summary of financial assets and liabilities not carried at fair value
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:
September 30, 2025
December 31, 2024
Carrying ValueFair ValueCarrying ValueFair Value
(Dollars in millions)
Term Loan Facilities
$675 $687 $680 $693 
  2032 Senior Notes790 839 790 810