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Fair Value Measurements and Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
The Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material, as it is the Company’s policy to contract only with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations.

The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. The Company’s policy is generally to enter into derivative instrument contracts with terms that match the underlying exposure being hedged.

The Company’s derivative instruments include foreign currency contracts and commodity contracts, which are either designated as cash flow, fair value, or net investment hedges, or are not designated as accounting hedges (“economic hedges”). The Company utilizes foreign currency contracts, including forward and swap contracts, local currency deposits and local currency borrowings to hedge portions of its forecasted foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. These contracts are valued using observable market rates (Level 2 valuation). Commodity futures contracts are utilized to hedge the purchases of raw materials used in production. These contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of foreign currency and commodity contracts does not exceed 12 months.

The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments which are carried at fair value in the Company’s Condensed Consolidated Balance Sheets at June 30, 2026 and December 31, 2025:

AssetsLiabilities

Account		Fair ValueAccountFair Value
Derivative instrumentsJune 30, 2026December 31, 2025June 30, 2026December 31, 2025
Foreign currency contracts(1)
Other current assets$27 $18 Other accruals$32 $22 
Commodity contractsOther current assets— — Other accruals1 — 
$27 $18 $33 $22 
Other financial instruments
Marketable securitiesOther current assets$83 $107 
(1) As of June 30, 2026, the fair value of economic hedges was $5 and $10, which was included within Other current assets and Other accruals, respectively.
As of December 31, 2025, the fair value of economic hedges was $10 and $4, which was included within Other current assets and Other accruals, respectively.
The carrying amount of cash, cash equivalents, marketable securities and accounts receivable approximated fair value as of June 30, 2026 and December 31, 2025. The estimated fair value of the Company’s total debt as of June 30, 2026 and December 31, 2025 was $7,371 and $7,518, respectively, and the related carrying value was $7,857 and $7,988, respectively. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation).


The following table presents the notional values of the financial instruments used in our hedge activities:

June 30, 2026December 31, 2025
Foreign Currency Contracts$3,751 $3,535 
Foreign Currency Debt4,305 3,942 
Commodity Contracts16 16 


The following table presents the location and amount of gain (loss) on fair value hedges and economic hedges recognized in the Company’s Condensed Consolidated Statements of Income for three and six months ended June 30, 2026 and 2025.

Gain (Loss) Recognized in Income
Location of Gain (Loss) Recognized in IncomeThree Months Ended June 30,Six Months Ended June 30,
2026202520262025
Derivative instruments:
Foreign currency contracts(1)
Selling, general and administrative expenses$(32)$84 $(73)$129 
(1) For the three and six months ended June 30, 2026, the amount of gain(loss) on economic hedges was ($11) and ($50), respectively.
For the three and six months ended June 30, 2025, the amount of gain(loss) on economic hedges was $54 and $79, respectively.


The amount of gain (loss) recognized in income and Accumulated other comprehensive income (AOCI) associated with cash flow hedges did not have a material impact on the Company’s Condensed Consolidated Financial Statements during the three and six months ended June 30, 2026 and 2025.


The following table presents the amount of gain (loss) on net investment hedges recognized in the Company’s AOCI for the three and six months ended June 30, 2026 and 2025:

Gain (Loss) Recognized in AOCI
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Hedging instruments:
Foreign currency contracts$(8)$(22)$(7)$(29)
Foreign currency debt33 (348)142 (515)
Total gain (loss) on net investment hedges$25 $(370)$135 $(544)