FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Derivative Assets at Fair Value

The following table presents the gross fair values of our outstanding derivative instruments.


Fair Value of Derivatives	June 30, 2026						December 31, 2025
	Gross Notional		Fair Value – Assets		Fair Value – Liabilities		Gross Notional		Fair Value – Assets		Fair Value – Liabilities
Foreign currency forward contracts	$	1,636	$	82	$	7	$	1,508	$	52	$	23
Derivatives accounted for as cash flow hedges	1,636		82		7		1,508		52		23
Cross-currency swaps	3,990		68		70		4,115		51		135
Foreign currency forward and options contracts	2,628		52		38		2,581		50		37
Derivatives accounted for as net investment hedges	6,618		120		109		6,697		101		172
Interest rate swaps	2,700		—		25		2,700		28		—
Derivatives accounted for as fair value hedges	2,700		—		25		2,700		28		—
Foreign currency forward contracts	5,468		10		24		4,761		20		7
Other derivatives(1)	324		11		3		320		56		5



Derivatives not designated as hedging instruments	5,792		21		27		5,081		76		12
Total derivatives	$	16,746	$	222	$	167	$	15,986	$	256	$	207

(1) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.

Schedule of Derivative Liabilities at Fair Value

The following table presents the gross fair values of our outstanding derivative instruments.


Fair Value of Derivatives	June 30, 2026						December 31, 2025
	Gross Notional		Fair Value – Assets		Fair Value – Liabilities		Gross Notional		Fair Value – Assets		Fair Value – Liabilities
Foreign currency forward contracts	$	1,636	$	82	$	7	$	1,508	$	52	$	23
Derivatives accounted for as cash flow hedges	1,636		82		7		1,508		52		23
Cross-currency swaps	3,990		68		70		4,115		51		135
Foreign currency forward and options contracts	2,628		52		38		2,581		50		37
Derivatives accounted for as net investment hedges	6,618		120		109		6,697		101		172
Interest rate swaps	2,700		—		25		2,700		28		—
Derivatives accounted for as fair value hedges	2,700		—		25		2,700		28		—
Foreign currency forward contracts	5,468		10		24		4,761		20		7
Other derivatives(1)	324		11		3		320		56		5



Derivatives not designated as hedging instruments	5,792		21		27		5,081		76		12
Total derivatives	$	16,746	$	222	$	167	$	15,986	$	256	$	207

(1) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.

Schedule of Effect of Derivatives Instruments on Statement of Financial Position and Statement of Income

The following table presents amounts recorded in Long-term borrowings in the Condensed Consolidated Statements of Financial Position related to cumulative basis adjustment for fair value hedges.


	June 30, 2026				December 31, 2025
	Carrying amount		Cumulative basis adjustment included in the carrying amount		Carrying amount		Cumulative basis adjustment included in the carrying amount
Long-term borrowings designated as fair value hedges	$	2,670	$	(25)	$	2,722	$	27

The tables below present the gains (losses) on our derivative financial instruments and hedging activity in the Condensed Consolidated Statements of Income.


Derivative Financial Instruments and Hedging Activity	For the three months ended June 30, 2026
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(4)

Foreign currency forward contracts	$	9	$	2	$	—	$	—	$	—
Effects of cash flow hedges	9		2		—		—		—
Cross-currency swaps	—		—		—		13		—
Foreign currency forward and options contracts	—		—		—		6		—
Effects of net investment hedges(1)	—		—		—		19		—

Interest rate swaps(2)	—		—		—		(34)		—
Debt basis adjustment on Long-term borrowings	—		—		—		34		—

Effects of fair value hedges	—		—		—		1		—
Foreign currency forward contracts	10		3		—		—		—



Other derivatives(3)	—		—		7		—		22
Effects of derivatives not designated as hedging instruments	10		3		7		—		23























	For the three months ended June 30, 2025
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(4)

Foreign currency forward contracts	$	(3)	$	(1)	$	—	$	—	$	—
Effects of cash flow hedges	(3)		(1)		—		—		—
Cross-currency swaps	—		—		—		6		—
Foreign currency forward and option contracts	—		—		—		5		—
Effects of net investment hedges(1)	—		—		—		11		—

Interest rate swaps(2)	—		—		—		24		—
Debt basis adjustment on Long-term borrowings	—		—		—		(28)		—

Effects of fair value hedges	—		—		—		(4)		—
Foreign currency forward contracts	44		12		—		—		(1)
Other derivatives(3)	—		—		4		—		6
Effects of derivatives not designated as hedging instruments	44		12		4		—		5


Derivative Financial Instruments and Hedging Activity	For the six months ended June 30, 2026
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(4)

Foreign currency forward contracts	$	14	$	3	$	—	$	—	$	—
Effects of cash flow hedges	14		3		—		—		—
Cross-currency swaps	—		—		—		25		—
Foreign currency forward and options contracts	—		—		—		11		—
Effects of net investment hedges(1)	—		—		—		36		—

Interest rate swaps(2)	—		—		—		(51)		—
Debt basis adjustment on Long-term borrowings	—		—		—		53		—

Effects of fair value hedges	—		—		—		2		—
Foreign currency forward contracts	23		6		—		—		—



Other derivatives(3)	—		—		4		—		16
Effects of derivatives not designated as hedging instruments	23		6		4		—		16























	For the six months ended June 30, 2025
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(4)

Foreign currency forward contracts	$	(5)	$	(1)	$	—	$	—	$	—
Effects of cash flow hedges	(5)		(1)		—		—		—
Cross-currency swaps	—		—		—		14		—
Foreign currency forward and option contracts	—		—		—		8		—
Effects of net investment hedges(1)	—		—		—		22		—

Interest rate swaps(2)	—		—		—		80		—
Debt basis adjustment on Long-term borrowings	—		—		—		(88)		—

Effects of fair value hedges	—		—		—		(8)		—
Foreign currency forward contracts	59		16		—		—		(1)
Other derivatives(3)	—		—		1		—		(9)
Effects of derivatives not designated as hedging instruments	59		16		1		—		(10)

(1) Changes in fair value related to components other than the spot rate are excluded from effectiveness testing for the three and six months ended June 30, 2026 and 2025.

(2) Amount includes interest income (expense) on interest rate derivatives of $1 million and $(4) million for the three months ended June 30, 2026 and 2025, respectively, and $2 million and $(8) million for the six months ended June 30, 2026 and 2025, respectively.

(3) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.

(4) Amounts are inclusive of gains (losses) in Other (income) expense – net in the Condensed Consolidated Statements of Income.

Schedule of Derivative Pre-tax Gains (Losses) Recognized in OCI

The table below presents the pre-tax gains (losses) recognized in OCI associated with the Company’s cash flow and net investment hedges.


Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
	For the three months ended June 30				For the six months ended June 30
	2026		2025		2026		2025
Cash flow hedges	$	22	$	(47)	$	51	$	(62)
Net investment hedges(1)	(35)		(189)		72		(254)

(1) Amounts recognized in OCI for excluded components for the periods presented were immaterial.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table represents assets and liabilities that are recorded and measured at fair value on a recurring basis.


Fair Value of Assets and Liabilities Measured on a Recurring Basis
	As of June 30, 2026								As of December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	—	$	309	$	—	$	309	$	—	$	399	$	—	$	399
Investment securities	52		—		30		82		47		—		30		77
Derivatives	—		222		—		222		—		256		—		256
Liabilities:
Derivatives	—		167		—		167		—		207		—		207
Contingent consideration	—		—		20		20		—		—		30		30