v3.26.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Gains and Losses on Derivative Instruments
The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our condensed consolidated financial statements for the three months ended June 30, 2026 and 2025.
Gain (loss) recognized in OCILocation of gain (loss)
in income statement		Gain (loss) reclassified from AOCI into income
(in millions)2026202520262025
Cash flow hedges
Interest rate contracts$— $— Interest expense, net$(2)$(2)
Foreign exchange contracts— (2)Cost of sales— 2 
Net investment hedges5 (66)Other (income) expense, net— — 
Total$5 $(68)$(2)$— 

Location of gain (loss) in income statementGain (loss) recognized in income
(in millions)20262025
Undesignated derivative instruments
Foreign exchange contractsOther (income) expense, net$— $33 
Total$— $33 

The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the six months ended June 30, 2026 and 2025.

Gain (loss) recognized in OCILocation of gain (loss)
in income statement		Gain (loss) reclassified from AOCI into income
(in millions)2026202520262025
Cash flow hedges
Interest rate contracts$— $— Interest expense, net$(3)$(3)
Foreign exchange contracts— (2)Cost of sales— 6 
Net investment hedges25 (127)Other (income) expense, net— — 
Total$25 $(129)$(3)$3 
Location of gain (loss) in income statementGain (loss) recognized in income
(in millions)20262025
Undesignated derivative instruments
Foreign exchange contractsOther (income) expense, net(4)31 
Total$(4)$31 
Classification and Fair Values of Derivative Instruments
The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of June 30, 2026.
Derivatives in asset positionsDerivatives in liability positions
(in millions)Balance sheet locationFair valueBalance sheet locationFair value
Derivative instruments designated as hedges
Net investment hedgesLong-term debt and finance lease obligations, less current portion$810
Undesignated derivative instruments
Foreign exchange contractsPrepaid expenses and other current assets1 Accrued expenses and other current liabilities3
Total derivative instruments$1 $813
The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2025.
Derivatives in liability positions
(in millions)Balance sheet locationFair value
Derivative instruments designated as hedges
Net investment hedgesLong-term debt and finance lease obligations, less current portion834 
Undesignated derivative instruments
Foreign exchange contractsAccrued expenses and other current liabilities1 
Total derivative instruments$835 
Derivative Positions Presented On Net Basis
The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty.
June 30, 2026December 31, 2025
(in millions)AssetLiabilityAssetLiability
Gross amounts recognized in the condensed consolidated balance sheets$1 $3 $— $1 
Gross amount subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet(1)(1)— — 
Total$— $2 $— $1 
Amounts Recorded on Condensed Consolidated Balance Sheet Related to Fair Value Hedges
The following table presents the amounts recorded on the condensed consolidated balance sheet related to fair value hedges:
Carrying amount of hedged itemCumulative amount of fair value hedging adjustment included
 in the carrying amount of the hedged item (a)
(in millions)Balance as of June 30, 2026Balance as of December 31, 2025Balance as of June 30, 2026Balance as of December 31, 2025
Long-term debt$98 $99 $1 $2 
(a) These fair value hedges were terminated in 2018 and earlier periods.