v3.26.1
REVENUE RECOGNITION (Tables)
6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of variable consideration provisions
The following tables present the activity and ending balances of the Company’s variable consideration provisions for the six months ended June 30, 2026 and 2025.
Six Months Ended June 30, 2026
(in millions)Discounts
and
Allowances
ReturnsRebatesChargebacksDistribution
Fees
Total
Reserve balances, January 1, 2026
$173 $348 $1,352 $125 $64 $2,062 
Current period provisions343 82 1,792 671 126 3,014 
Payments and credits(365)(71)(1,895)(685)(127)(3,143)
Reserve balances, June 30, 2026
$151 $359 $1,249 $111 $63 $1,933 
Included in Rebates in the table above are cooperative advertising credits due to customers of approximately $44 million and $31 million as of June 30, 2026 and January 1, 2026, respectively, which are reflected as a reduction of Trade receivables, net in the Condensed Consolidated Balance Sheets. Included as a reduction of current period provisions for Distribution Fees in the table above are price appreciation credits of approximately $20 million for the six months ended June 30, 2026.
Six Months Ended June 30, 2025
(in millions)Discounts
and
Allowances
ReturnsRebatesChargebacksDistribution
Fees
Total
Reserve balances, January 1, 2025
$170 $372 $1,421 $189 $85 $2,237 
Current period provisions348 68 2,072 887 160 3,535 
Payments and credits(356)(74)(2,087)(912)(160)(3,589)
Reserve balances, June 30, 2025
$162 $366 $1,406 $164 $85 $2,183 
Schedule of activity in allowance for credit losses The activity in the allowance for credit losses for trade receivables for the six months ended June 30, 2026 and 2025 is as follows:
(in millions)20262025
Balance, beginning of period$31 $30 
Provision for expected credit losses
Write-offs charged against the allowance(2)(6)
Foreign exchange and other
Balance, end of period$35 $28