Related-Party Transactions (Tables)

6 Months Ended

Jun. 30, 2026

The total costs for services and functions allocated to the Company from the Former Parent for periods prior to the Spin-Off were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026 (1)		2025
	(in millions)
Cost of sales	$	—	$	37	$	13	$	56
Selling, general and administrative	—		78		80		156
Restructuring	—		1		—		1
Total allocated costs from Former Parent	$	—	$	116	93		213

(1)All amounts incurred prior to the April 1, 2026 Spin-Off.

Schedule of Net Parent Investment

The components of net transfers (to) from Former Parent were as follows:


	Six Months Ended June 30,
		2026		2025
		(in millions)
Cash pooling and general financing activities, net		$	(133)	$	(47)
Corporate cost allocations		93		213
Income taxes (1)		(7)		(32)
Net transfers (to) from Former Parent per consolidated statements of cash flows		(47)		134
Transfer of net assets with Former Parent		(17)		—
Related party receivables exchanged with Former Parent		28		—
Deferred and non-cash taxes settled with Former Parent through Former Parent's net investment (1)		53		—
Net transfers from Former Parent per consolidated statements of shareholders' equity (2)		$	17	$	134

(1)Represents non-cash income tax impacts incurred in the respective period as a result of the application of the separate return basis with respect to the income tax provision and related balance sheet accounts within the consolidated financial statements, as further described in Note 13. Income Taxes, as well as taxes paid by the Former Parent.

(2)Net transfers (to) from Former Parent per consolidated statements of shareholders’ equity was $(36) million and $95 million for the three months ended June 30, 2026 and 2025, respectively.