
Fair Value of Financial Instruments	March 31, 2026								December 31, 2025
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents	$	86	$	—	$	—	$	86	$	100	$	—	$	—	$	100
Restricted cash equivalents 1	42		—		—		42		42		—		—		42


Total cash and restricted cash equivalents	$	128	$	—	$	—	$	128	$	142	$	—	$	—	$	142
Long-term debt including debt due within one year 2	$	(3,132)	$	95	$	(80)	$	(3,117)	$	(3,134)	$	52	$	(99)	$	(3,181)
Derivatives relating to:
Net investment hedge 3	$	—	$	64	$	—	$	64	$	—	$	46	$	—	$	46
Foreign currency 4, 5	—		26		(5)		21		—		—		(10)		(10)
Interest rate swap agreements 6	—		—		(45)		(45)		—		—		(42)		(42)
Total derivatives	$	—	$	90	$	(50)	$	40	$	—	$	46	$	(52)	$	(6)

2.At March 31, 2026 and December 31, 2025, the balance included an unamortized basis adjustment of $35 million related to the 2022 Swaps, discussed below. Additionally, the March 31, 2026 and December 31, 2025 balance included a fair value hedging adjustment of $7 million and $4 million, respectively related to the 2022 Swaps discussed below. The fair value of long-term debt including debt due within one year is based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities and terms and represents a Level 2 fair value measurement.

In the ordinary course of business, the Company enters into contractual arrangements (derivatives) to reduce its exposure to foreign currency, interest rate and commodity price risks. The Company has established a variety of derivative programs to be utilized for financial risk management. These programs reflect varying levels of exposure coverage and time horizons based on an assessment of risk.

Derivative programs have procedures and controls and are approved by the Corporate Financial Risk Management Committee, consistent with the Company's financial risk management policies and guidelines. The Company's derivative instruments include forwards, options, futures and swaps.

The Company's financial risk management procedures also address counterparty credit approval, limits and routine exposure monitoring and reporting. The counterparties to these contractual arrangements are major financial institutions and major commodity exchanges. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company utilizes collateral support annex agreements with certain counterparties to limit its exposure to credit losses. The Company anticipates performance by the counterparties to these contracts and therefore no material loss is expected. Market and counterparty credit risks associated with these instruments are regularly reported to management.


Notional Amounts	March 31, 2026		December 31, 2025
In millions
Derivatives designated as hedging instruments:
Net investment hedge	$	1,000	$	1,000
Interest rate swap agreements 1	774		774
Derivatives not designated as hedging instruments:
Foreign currency contracts 2	$	347	$	1,014

In the second quarter of 2021, the Company entered into a fixed-for-fixed cross currency swaps with an aggregate notional amount totaling $1 billion to hedge the variability of exchange rate impacts between the U.S. Dollar and Euro. Under the terms of the cross-currency swap agreement, the Company notionally exchanged $1 billion at an interest rate of 4.73 percent for €819 million at a weighted average interest rate of 3.26 percent. The cross-currency swap is designated as a net investment hedge and expires on November 15, 2028.

The Company has made an accounting policy election to account for the net investment hedge using the spot method. The Company has also elected to amortize the excluded components in interest expense in the related quarterly accounting period that such interest is accrued. The cross-currency swap is marked to market at each reporting date and any unrealized gains or losses are included in unrealized currency translation adjustments within AOCL, net of amounts associated with excluded components which are recognized in "Interest expense" in the interim Consolidated Statements of Operations.

In the second quarter of 2022, the Company entered into fixed-to-floating interest rate swap agreements (the “2022 Swaps”) with an aggregate notional principal amount totaling $1 billion to hedge changes in the fair value of the Company’s fixed-rate notes due 2038 attributable to interest rate change movements. These swaps convert interest on the hedged portion of the 2038 Notes to a floating rate based on the Secured Overnight Financing Rate through November 2032. The 2022 Swaps expire on November 15, 2032 and are carried at fair value. The 2022 Swaps, including their dedesignation events, settlements and subsequent redesignation, are discussed in detail in Note 21 to the Consolidated Financial Statements included in the Company’s 2025 Annual Report.

As of March 31, 2026 and December 31, 2025, the 2022 Swaps are the Company's only outstanding interest rate swaps. Changes in the fair value of the hedging instruments and the hedged portion of the debt attributable to changes in the benchmark interest rate are recorded in "Interest expense" in the interim Consolidated Statements of Operations. The hedging instrument is presented at fair value within “Other noncurrent obligations”, with accrued interest presented in "Accounts and notes receivable – net" and “Accrued and other current liabilities” respectively in the interim Condensed Consolidated Balance Sheets.

The Company routinely uses forward exchange contracts to reduce its net exposure by currency related to foreign currency-denominated monetary assets and liabilities of its operations, so that exchange gains and losses resulting from exchange rate changes are minimized. The netting of such exposures precludes the use of hedge accounting; however, the required revaluation of the forward contracts and the associated foreign currency-denominated monetary assets and liabilities intends to achieve a minimal earnings impact, after taxes. The Company also uses foreign currency exchange contracts to offset a portion of the Company's exposure to certain foreign currency-denominated revenues so that gains and losses on the contracts offset changes in the US dollar value of the related foreign currency-denominated revenues.

Foreign currency derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency-denominated assets and liabilities. The amount charged on a pre-tax basis related to foreign currency derivatives not designated as hedges, which was included in “Sundry income (expense) – net” in the interim Consolidated Statements of Operations, was a gain of $9 million and $3 million for the three months ended March 31, 2026 and 2025, respectively.

The 2022 Swaps, including their original terms, dedesignation events, settlements and subsequent redesignation and the Company's 2024 interest rate swap agreements ("2024 Swaps"), including their original terms, settlements and mandatory early termination are discussed in detail in Note 21 to the Consolidated Financial Statements included in the Company’s 2025 Annual Report. During periods when the 2022 Swaps and the 2024 Swaps were not designated in a qualifying hedge relationship, changes in fair value and net interest settlements were recorded in “Sundry income (expense) – net.”

Gains and losses related to interest rate swaps not designated as hedges, including the 2024 Swaps and the non‑designated periods of the 2022 Swaps, were recorded in “Sundry income (expense) – net” in the interim Consolidated Statements of Operations. The Company recognized a gain of $78 million for the three months ended March 31, 2025.