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DERIVATIVES
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
The Company uses foreign currency forward contracts, cross-currency swaps, and interest rate swap agreements to manage risks associated with foreign currency exchange rates, net investments in foreign operations, and interest rates. The Company does not hold derivative financial instruments of a speculative nature or for trading purposes. The Company records derivatives as assets and liabilities on the condensed consolidated balance sheets at fair value. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge under ASC 815, Derivatives and Hedging. Cash flows from derivatives are classified in the condensed consolidated statements of cash flows in the same category as the cash flows from items subject to designated hedge or undesignated (economic) hedge relationships. The Company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued.
The Company is exposed to credit risk in the event of nonperformance of counterparties for foreign currency forward exchange contracts, cross currency swaps, and interest rate swap agreements. The Company monitors its exposure to credit risk by using credit approvals and credit limits and by selecting major global banks and financial institutions as
counterparties. The Company does not enter into derivative transactions for trading purposes, and is not party to any derivatives that require collateral to be posted prior to settlement.
Certain of the Company’s derivative transactions are subject to master netting arrangements that allow the Company to net settle contracts with the same counterparties. These arrangements do not call for collateral and no cash collateral had been received or pledged related to the underlying derivatives as of September 30, 2025.
The following table presents the fair value of derivative instruments:
September 30, 2025December 31, 2024
Outstanding Gross
Notional Amount		Other AssetsOther
Noncurrent liabilities		Outstanding Gross
Notional Amount		Other AssetsOther
Noncurrent liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:     
Interest rate swaps$1,840 $1 $— $1,840 $25 $— 
Cross currency contracts120 3 — 120 14 — 
Foreign currency forward contracts3 — — — — — 
Fair value hedges:     
Cross currency contracts689 3 — 737 54 — 
Net investment hedges:     
Cross currency contracts931 7 1 230 28 — 
Total derivatives designated as hedging instruments3,583 14 1 2,927 121 — 
Derivatives not designated as hedging instruments:
Foreign currency forward contracts487 7 5 77 — — 
Total derivatives$4,070 $21 $6 $3,004 $121 $— 

The following table presents the after tax effect of derivatives on the condensed consolidated statements of operations:
Amount of (income) expense recognized in income
DerivativesLocation of (income) expense
recognized in the condensed consolidated statements of operations		Three Months Ended September 30,
20252024
Cash flow hedging relationships:
Interest rate swapsInterest expense, net$(2)$(9)
Cross currency contractsInvestment (income) expense and other, net— 4 
Cross currency contractsInterest expense, net— (1)
Foreign currency forward contractsInvestment (income) expense and other, net— — 
Fair value hedging relationships:
Cross currency contractsInvestment (income) expense and other, net(10)26 
Cross currency contractsInterest expense, net— (1)
Net investment hedging relationships:
Cross currency contractsInterest expense, net(4)(1)
Not designated as hedging instruments:
Foreign currency forward contractsInvestment (income) expense and other, net— — 
Amount of (income) expense recognized in income
DerivativesLocation of (income) expense
recognized in the condensed consolidated statements of operations		Nine Months Ended September 30,
20252024
Cash flow hedging relationships:
Interest rate swapsInterest expense, net$(7)$(27)
Cross currency contractsInvestment (income) expense and other, net14 1 
Cross currency contractsInterest expense, net(1)(2)
Foreign currency forward contractsInvestment (income) expense and other, net— — 
Fair value hedging relationships:
Cross currency contractsInvestment (income) expense and other, net51 11 
Cross currency contractsInterest expense, net1 (2)
Net investment hedging relationships:
Cross currency contractsInterest expense, net(6)(3)
Not designated as hedging instruments:
Foreign currency forward contractsInvestment (income) expense and other, net— — 
Currency Effects
The (income) expense from derivatives designed to offset foreign currency exposure and recorded in investment (income) expense and other, net were offset by foreign currency transaction gains and losses resulting in a net loss (gain) of $2 and $(1) for each of the three months ended September 30, 2025 and 2024, respectively, and $1 for the nine months ended September 30, 2025 and 2024.
The following table presents the effect of cash flow and fair value hedge accounting on accumulated other comprehensive loss (income) ("AOCI"):
Amount of (gain) loss
recognized in other
comprehensive income		Location of (gain) loss reclassified from
AOCI into income		Amount of (gain) loss
reclassified from
AOCI into income
Three Months Ended September 30,Three Months Ended September 30,
Derivatives2025202420252024
Cash flow hedging relationships:
Interest rate swaps$— $20 Interest expense, net$— $(4)
Cross currency contracts— (1)Investment (income) expense and other, net— 4 
Forward currency forward contracts— — Investment (income) expense and other, net— — 
Fair value hedging relationships:
Cross currency contracts— (3)Investment (income) expense and other, net(12)25 
Interest expense, net— — 
Net investment hedging relationships:
Cross currency contracts(5)5 Interest expense, net(3)1 

Amount of (gain) loss
recognized in other
comprehensive income		Location of (gain) loss reclassified from
AOCI into income		Amount of (gain) loss
reclassified from
AOCI into income
Nine Months Ended
September 30,		Nine Months Ended
September 30,
Derivatives2025202420252024
Cash flow hedging relationships:
Interest rate swaps$18 $8 Interest expense, net$— $(12)
Cross currency contracts(2)— Investment (income) expense and other, net14 1 
Forward currency forward contracts— — Investment (income) expense and other, net— — 
Fair value hedging relationships:
Cross currency contracts(1)(3)Investment (income) expense and other, net48 10 
Interest expense, net2 — 
Net investment hedging relationships:
Cross currency contracts18 — Interest expense, net(3)— 
Cash flow hedges
For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized in current earnings.
Interest rate swaps
The Company manages its fixed and floating rate debt mix using interest rate swaps. The Company uses interest rate swap contracts to separate interest rate risk management from the debt funding decision. The Company elected a method that does not require continuous evaluation of hedge effectiveness.
The Company has an aggregate $720 notional amount interest rate swap ("2026 Interest Rate Swap") and aggregate $400 notional swaps ("2028 Interest Rate Swap"). The 2026 Interest Rate Swap exchanges a variable rate of interest (SOFR) for an average fixed rate of interest of approximately 3.59% over the term of the agreement, which matures in October 2026. The 2028 Interest Rate Swap exchanges a variable rate of interest (SOFR) for an average fixed rate of interest of approximately 3.41% over the term of the agreements, which mature in January 2028.
During 2024, the Company entered into a $720 notional amount forward starting interest rate swap that exchanges a variable rate of interest (SOFR) for an average fixed rate of interest of approximately 3.13% over the term of the agreement, commencing in October 2026 and maturing in January 2029 ("2029 Interest Rate Swap"). Upon commencement, the 2029 Interest Rate Swap will cover the remainder of the interest payments starting in October 2026 to the maturity of the 2021 Term Loan.
As of September 30, 2025, the Company had $1,840 notional amount outstanding in the 2026 Interest Rate Swap, the 2028 Interest Rate Swap, and the 2029 Interest Rate Swap. The Company has designated these swaps as cash flow hedges of the interest rate risk attributable to forecasted variable interest (SOFR) payments for its SOFR based term loan of $2,157. As of September 30, 2025, the weighted average fixed rate of interest on these swaps was approximately 3.52%. Variations in the assets and liability balances related to the swaps are primarily driven by changes in the applicable forward yield curves related to SOFR.
Cross-currency swaps
The Company enters into cross-currency exchange contracts utilized to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies and to hedge exposures of certain intercompany loans subject to changes in foreign currency exchange rates. The Company periodically assesses whether its currency exchange contracts are effective, and when a contract is determined to be no longer effective as a hedge, the Company discontinues hedge accounting prospectively.
During 2021, the Company entered into two cross-currency swaps designated as cash flow hedges with gross notional U.S. dollar equivalent amounts of $26 and $94 with maturity dates of September 2027 and 2030, respectively.
Foreign currency forward contracts
The Company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate fluctuations on forecasted foreign currency transactions, including inventory purchases and intercompany charges and other payments. These forward contracts are designated as cash flow hedges. The changes in fair value of these contracts are recorded in other comprehensive income until the hedged items affect earnings, at which time the hedge gain or loss is reclassified into current earnings. The Company periodically assesses whether its currency exchange contracts are effective, and when a contract is determined to be no longer effective as a hedge, the Company discontinues hedge accounting prospectively.
Fair value hedges
The Company uses cross-currency swaps designated as fair value hedges to manage exposure from intercompany loans subject to foreign exchange risks. In 2024, a AUD swap ($16 USD equivalent, maturing June 2029) was added to the existing GBP, CAD, and EUR swaps (totaling $721 USD equivalent, maturing January 2027). During the nine months ended September 30, 2025, the Company partially terminated its CAD swap, resulting in the reclassification of a portion of losses totaling $2 from AOCI to interest expense, net in its condensed consolidated statements of operations. Following the partial termination of the CAD swap, there was $689 USD equivalent notional outstanding.
The Company measures the effectiveness of fair value hedges on a spot-to-spot basis. Accordingly, the spot-to-spot change in the derivative fair values are recorded in the condensed consolidated statements of operations and perfectly offset the spot-to-spot change in the underlying intercompany loans, and as such, these hedges are deemed highly effective. The excluded component of the fair values of these derivatives is reported in AOCI within shareholders’ equity in the condensed consolidated balance sheets. Any cash flows associated with these instruments are included in operating activities in the condensed consolidated statements of cash flows.
Net investment hedges
The Company has net investments in foreign subsidiaries subject to changes in foreign currency exchange rates. During the second quarter of 2025, the Company entered into a $701 notional foreign currency swap designated as a net investment hedge ("2025 net investment hedge") for a portion of the Company’s net investments in Euro-denominated subsidiaries. In 2021, the Company entered into a $230 notional foreign currency swap designated as a net investment hedge ("2021 net
investment hedge") for a portion of the Company’s net investments in Euro-denominated subsidiaries. Gains and losses resulting from a change in fair value of the net investment hedges are offset by gains and losses on the underlying foreign currency exposure and are included in AOCI in the condensed consolidated balance sheets. The Company evaluates the effectiveness of its net investment hedges at inception and on an ongoing basis. If a net investment hedge is no longer expected to be effective, the Company discontinues hedge accounting prospectively.
In 2021, the Company amended the critical terms of the 2021 net investment hedge by extending the maturity date to July 2029 and modifying the U.S. dollar and Euro coupons. The amended swap was redesignated as a net investment hedge and is recorded at fair value with changes recorded in AOCI. The initial net investment hedge was dedesignated. The fair value previously recognized in AOCI related to interest rate movements of the dedesignated swap is being amortized to interest expense on a straight-line basis through the third quarter of 2029.
Foreign currency contracts
The Company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate fluctuations on confirmed foreign currency transactions, including inventory purchases and intercompany charges and other payments. These forward contracts are undesignated for hedge accounting purposes. The changes in fair value of these contracts are recorded in investment (income) expense and other, net