| Accumulated Other Comprehensive Income (Loss) The components of Accumulated Other Comprehensive Income (Loss) are as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | | | Foreign Currency Translation | | Unrealized Gain (Loss) on Cash Flow Hedges (1) | | Unrealized Gain (Loss) on Pension Plans | | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | | Accumulated Other Comprehensive Income (Loss) | Balance as of April 1, 2026 | | $ | (135) | | | $ | (7) | | | $ | 10 | | | $ | (1) | | | $ | (133) | | | Pretax loss | | (36) | | | — | | | — | | | — | | | (36) | | | | | | | | | | | | | | Reclassification of unrealized loss | | — | | | 1 | | | — | | | — | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | Other comprehensive income from unconsolidated subsidiaries | | — | | | — | | | — | | | 2 | | | 2 | | Balance as of June 30, 2026 | | $ | (171) | | | $ | (6) | | | $ | 10 | | | $ | 1 | | | $ | (166) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | Foreign Currency Translation | | Unrealized Gain (Loss) on Cash Flow Hedges (1) | | | | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | | Accumulated Other Comprehensive Income (Loss) | Balance as of April 1, 2025 | | $ | (311) | | | $ | (9) | | | | | $ | 7 | | | $ | (313) | | | Pretax income | | 268 | | | 1 | | | | | — | | | 269 | | | Income tax effect | | — | | | (1) | | | | | — | | | (1) | | | Reclassification of unrealized loss | | — | | | 1 | | | | | — | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | Other comprehensive loss from unconsolidated subsidiaries | | — | | | — | | | | | (7) | | | (7) | | Balance as of June 30, 2025 | | $ | (43) | | | $ | (8) | | | | | $ | — | | | $ | (51) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | | Foreign Currency Translation | | Unrealized Gain (Loss) on Cash Flow Hedges (1) | | Unrealized Gain (Loss) on Pension Plans | | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | | Accumulated Other Comprehensive Income (Loss) | Balance as of January 1, 2026 | | $ | (64) | | | $ | (7) | | | $ | 10 | | | $ | 4 | | | $ | (57) | | | Pretax loss | | (107) | | | — | | | — | | | — | | | (107) | | | | | | | | | | | | | | Reclassification of unrealized loss | | — | | | 1 | | | — | | | — | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | Other comprehensive loss from unconsolidated subsidiaries | | — | | | — | | | — | | | (3) | | | (3) | | Balance as of June 30, 2026 | | $ | (171) | | | $ | (6) | | | $ | 10 | | | $ | 1 | | | $ | (166) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | Foreign Currency Translation | | Unrealized Gain (Loss) on Cash Flow Hedges (1) | | Unrealized Gain (Loss) on Pension Plans | | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | | Accumulated Other Comprehensive Income (Loss) | Balance as of January 1, 2025 | | $ | (411) | | | $ | (9) | | | $ | (1) | | | $ | 4 | | | $ | (417) | | | Pretax income | | 368 | | | 1 | | | — | | | — | | | 369 | | | Income tax effect | | — | | | (1) | | | — | | | — | | | (1) | | | Reclassification of unrealized loss | | — | | | 1 | | | — | | | — | | | 1 | | | Reclassification of deferred income taxes | | — | | | — | | | 1 | | | — | | | 1 | | | | | | | | | | | | | | Other comprehensive loss from unconsolidated subsidiaries | | — | | | — | | | — | | | (4) | | | (4) | | Balance as of June 30, 2025 | | $ | (43) | | | $ | (8) | | | $ | — | | | $ | — | | | $ | (51) | |
(1) Balances primarily include the forward starting interest rate swaps to hedge the risk of changes in interest rates related to forecasted debt issuance to finance a portion of the Uni-Select Acquisition. These swaps will continue to be reclassified to Interest expense over the term of the 5.75% senior notes due June 2028 (the "U.S. Notes (2028)") and the 6.25% senior notes due June 2033 (the "U.S. Notes (2033)" and together with the U.S. Notes (2028), the "U.S. Notes (2028/2033)"). Please refer to Note 20, "Derivative Instruments and Hedging Activities" in our 2023 Form 10-K for further information.
Our policy is to reclassify the income tax effect from Accumulated other comprehensive income (loss) to the Provision for income taxes when the related gains and losses are released to the Unaudited Condensed Consolidated Statements of Income.
|