v3.26.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair Value Measurements on a Recurring Basis
The following tables summarize the basis used to measure certain assets and liabilities at fair value on a recurring basis:
Basis of Fair Value Measurements on a Recurring Basis of Significant Other Observable Inputs (Level 2)
March 31, 2026December 31, 2025
In millions
Assets at fair value:
Cash equivalents and restricted cash equivalents 1
$128 $142 
Derivatives relating to: 2
Net investment hedge 64 46 
Foreign currency contracts 3
29 2 
Total assets at fair value$221 $190 
Liabilities at fair value:
Derivatives relating to: 2
Interest rate swap agreements45 42 
Foreign currency contracts 3
8 12 
Total liabilities at fair value$53 $54 
1. Time deposits included in "Cash and cash equivalents" in the interim Condensed Consolidated Balance Sheets are held at amortized cost, which approximates fair value. "Restricted cash and cash equivalents" in the interim Condensed Consolidated Balance Sheets of $42 million at March 31, 2026 and December 31, 2025 are deposited in money market funds and represent Level 1 fair value measurement investments which are held at amortized cost.
2. See Note 17 for the classification of derivatives in the interim Condensed Consolidated Balance Sheets.
3. Asset and liability derivatives subject to an enforceable master netting arrangement with the same counterparty are presented on a net basis in the interim Condensed Consolidated Balance Sheets. The offsetting counterparty and cash collateral netting amounts for foreign currency contracts were $3 million and zero respectively, for both assets and liabilities as of March 31, 2026. The offsetting counterparty and cash collateral netting amounts were $2 million and zero, respectively, for both assets and liabilities as of December 31, 2025.

As part of the acquisition (the "Donatelle Acquisition") of Donatelle Plastics, LLC ("Donatelle"), the purchase agreement includes annual contingent earn-out payments based upon customer-specific revenue generated through December 31, 2029, with total accumulated earn-out payments of up to $85 million. The contingent earn-out liability was established using a Monte Carlo simulation and the significant assumption used is the estimated likelihood the customer specific revenue is earned. The contingent earn-out liability estimate represents a recurring fair value measurement with significant unobservable inputs. The fair value of the contingent earn-out liability is sensitive to changes in the interest rates, discount rates and the timing of the future payments, which are based upon estimates of future achievement of the customer specific revenue. As of March 31, 2026, the Company recognized an adjustment of approximately $6 million to reflect the latest developments in the future achievement of the customer specific revenue being earned.

Basis of Fair Value Measurements on a Recurring Basis of Significant Unobservable Inputs (Level 3)
March 31, 2026December 31, 2025
In millions
Liabilities at fair value:
Contingent earn-out liabilities
$15 $21 
Total liabilities at fair value$15 $21 

Fair Value Measurements on a Nonrecurring Basis
In relation to the Aramids Divestiture meeting the criteria to be classified as held for sale, the Company recorded a valuation allowance against the Aramids Business assets held for sale. The impairment analysis was performed using Level 3 inputs within the fair value hierarchy. See Note 3 for further discussion.

During the first quarter of 2025, the Company recorded an impairment charge related to goodwill within the Aramids reporting unit presented within discontinued operations. The impairment analysis was performed using Level 3 inputs within the fair value hierarchy. See Note 11 for further discussion.