v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 27, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair Value Measurements
The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis:
June 27,Quoted
prices in
active
markets		Significant
other
observable
inputs		Significant
unobservable
inputs
(In millions)2026(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents
$655 $655 $— $— 
Investments
135 43 — 92 
Insurance contracts
308 — 308 — 
Derivative contracts
268 — 268 — 
Contingent consideration68 — — 68 
Total assets
$1,434 $697 $576 $160 
Liabilities
Derivative contracts
$667 $— $667 $— 
Contingent consideration
178 — — 178 
Total liabilities
$845 $— $667 $178 
December 31,Quoted
prices in
active
markets		Significant
other
observable
inputs		Significant
unobservable
inputs
(In millions)2025(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents
$6,907 $6,907 $— $— 
Bank time deposits250 250 — — 
Investments
103 27 — 76 
Insurance contracts
280 — 280 — 
Derivative contracts
685 — 685 — 
Contingent consideration67 — — 67 
Total assets
$8,292 $7,184 $966 $143 
Liabilities
Derivative contracts
$506 $— $506 $— 
Contingent consideration
16 — — 16 
Total liabilities
$522 $— $506 $16 
In the three- and six-month periods ended June 27, 2026, the company recorded $24 million and $23 million, respectively, of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income. In the three- and six-month periods ended June 28, 2025, the company recorded $(3) million and $(2) million of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income.
The following table provides a rollforward of investments classified as level 3:
Three months endedSix months ended
(In millions)June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Investments
Beginning balance$85 $31 $76 $21 
Purchases8 28 16 38 
Ending balance$92 $59 $92 $59 
The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of a qualifying transaction), of the contingent consideration asset:
Three months endedSix months ended
(In millions)June 27, 2026June 27, 2026
Contingent consideration asset
Beginning balance
$67 $67 
Changes in fair value included in earnings
1 2 
Ending balance
$68 $68 
The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of achieving production or revenue milestones, as well as changes in the fair values of the investments underlying a recapitalization investment portfolio), of the contingent consideration liabilities.
Three months endedSix months ended
(In millions)June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Contingent consideration liabilities
Beginning balance$168 $13 $16 $13 
Acquisitions (including assumed balances)2 — 156 — 
Payments(9)(6)(9)(6)
Changes in fair value included in earnings17 (2)16 (1)
Currency translation(1)— (1)— 
Ending balance$178 $5 $178 $5 
Fair Value of Other Financial Instruments
The carrying value and fair value of the company’s debt instruments are as follows:
June 27, 2026December 31, 2025
(In millions)Carrying valueFair valueCarrying valueFair value
Senior notes
$42,284 $39,604 $39,171 $36,606 
Other
— — 1 1 
$42,284 $39,604 $39,172 $36,607 
The fair value of debt instruments, excluding private placement notes, was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends, which represent level 2 measurements. The fair value of private placement notes was determined based on internally developed pricing models and unobservable inputs, which represent level 3 measurements.