v3.25.4
FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Foreign Exchange Derivative Contracts Outstanding
At December 31, 2025, the following notional amounts related to foreign currency derivative contracts were outstanding, which mature through the December, 2027:
(in millions)
Notional Amount1
Traded currencyNotional in Traded CurrencyNotional in Approximate U.S. Dollar
Euro103 $122 
U.S. Dollar690 $690 
Mexican Peso3,226 $179 
Polish Zloty632 $176 
Hungarian Forint14,863 $45 
British Pound30 $41 
Swiss Franc28 $36 
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1 Table above excludes non-significant traded currency pairings with total notional amounts less than $10 million U.S. Dollar equivalent as of December 31, 2025.
Schedule of Foreign Exchange Contracts, Statement of Financial Position At December 31, 2025 and 2024, the following cross-currency swap contracts were outstanding and mature through August, 2030:
Cross-currency swaps
(in millions)
December 31, 2025December 31, 2024
U.S. Dollar to Euro:
Fixed receiving notional$400 $1,100 
Fixed paying notional€355 €976 
U.S. Dollar to Euro:
Fixed receiving notional$500 $500 
Fixed paying notional€470 €470 
U.S. Dollar to Euro:
Fixed receiving notional$500 $— 
Fixed paying notional€450 €— 
U.S. Dollar to Euro:
Fixed receiving notional$200 $— 
Fixed paying notional€179 €— 
U.S. Dollar to Japanese Yen:
Fixed receiving notional$100 $100 
Fixed paying notional¥12,724 ¥12,724 
Schedule of Derivative Instruments in Statement of Financial Position
At December 31, 2025 and 2024, the following amounts were recorded in the Consolidated Balance Sheets as being payable to or receivable from counterparties for derivative instruments under ASC Topic 815, “Derivatives and Hedging”:
(in millions)
AssetsLiabilities
Derivatives designated as hedging instruments Under 815:LocationDecember 31, 2025December 31, 2024LocationDecember 31, 2025December 31, 2024
Foreign currencyPrepayments and other current assets$18 $18 Other current liabilities$16 $23 
Foreign currencyOther non-current assets$4 $5 Other non-current liabilities$3 $5 
Net investment hedgesOther non-current assets$23 $84 Other non-current liabilities$94 $— 
Derivatives not designated as hedging instruments:
Foreign currencyPrepayments and other current assets$— $1 Other current liabilities$— $4 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated hedges. The amount expected to be reclassified to income in one year or less assumes no change in the current relationship of the hedged item at December 31, 2025 market rates.
(in millions)Deferred gain (loss) in AOCI atGain (loss) expected to be reclassified to income in one year or less
Contract typeDecember 31, 2025December 31, 2024
Cash flow hedges:
Foreign currency$7 $(7)$(1)
Net investment hedges:
    Cross-currency swaps$(71)$84 $— 
    Foreign currency-denominated debt29 168 — 
Total$(35)$245 $(1)
Gains and losses on derivative instruments designated as net investment hedges were recognized in other comprehensive income (loss) during the periods presented below.
(in millions)
Year Ended December 31,
Net investment hedges202520242023
Cross-currency swaps$(155)$72 $(55)
Foreign currency-denominated debt$(138)$68 $(33)
Schedule of Derivative Instruments
Derivative instruments designated as hedging instruments as defined by ASC Topic 815 held during the period resulted in the gains and losses recorded in income shown in the table below.
Year ended December 31, 2025
(in millions)Net salesCost of salesSelling, general and administrative expensesOther comprehensive income (loss)
Total amounts of earnings and other comprehensive income (loss) line items in which the effects of cash flow hedges are recorded$14,316 $11,642 $1,304 $221 
Gain (loss) on cash flow hedging relationships:
Foreign currency:
Gain (loss) recognized in other comprehensive income$9 
Gain (loss) reclassified from AOCI to income$— $(5)$(2)$— 
Year ended December 31, 2024
(in millions)
Net salesCost of salesSelling, general and administrative expensesOther comprehensive income (loss)
Total amounts of earnings and other comprehensive income (loss) line items in which the effects of cash flow hedges are recorded$14,086 $11,438 $1,350 $(192)
Gain (loss) on cash flow hedging relationships:
Foreign currency:
Gain (loss) recognized in other comprehensive income$(2)
Gain (loss) reclassified from AOCI to income$3 $33 $(1)$— 
Year ended December 31, 2023
(in millions)Net salesCost of salesSelling, general and administrative expensesOther comprehensive income (loss)
Total amounts of earnings and other comprehensive income (loss) line items in which the effects of cash flow hedges are recorded$14,198 $11,630 $1,316 $48 
Gain (loss) on cash flow hedging relationships:
Foreign currency:
Gain (loss) recognized in other comprehensive income$59 
Gain (loss) reclassified from AOCI to income$— $— $34 $— 
Schedule of Derivative Instruments, Gains
Derivatives designated as net investment hedge instruments, as defined by ASC Topic 815 held during the period resulted in the following gains recorded in Interest expense on components excluded from the assessment of effectiveness:
(in millions)
Year Ended December 31,
Net investment hedges202520242023
Cross-currency swaps$24 $23 $25 
Schedule of Derivatives Not Designated as Hedging Instruments
Derivatives not designated as hedging instruments are used to hedge remeasurement exposures of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in gains (losses) recorded in income as shown in the table below.
(in millions)Year Ended December 31,
Contract typeLocation202520242023
Foreign currencySelling, general and administrative expenses$— $2 $(15)