v3.26.1
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Investments, All Other Investments [Abstract]  
Carrying Amount and Estimated Fair Values of Financial Instruments
The carrying values and the estimated fair values of financial instruments at June 30, 2026 and December 31, 2025 consisted of the following:
June 30, 2026December 31, 2025
(DOLLARS IN MILLIONS)Carrying ValueFair ValueCarrying ValueFair Value
LEVEL 1
Cash and cash equivalents(1)
$569 $569 $590 $590 
LEVEL 2
Credit facilities and bank overdrafts(2)
— — 2 2 
Derivatives
Derivative assets(3)
13 13 18 18 
Derivative liabilities(3)
254 254 241 241 
Commercial paper(2)
50 50 314 314 
Long-term debt:
2026 Euro Notes(4)
914 912 940 935 
2027 Notes(4)
803 773 804 768 
2028 Notes(4)
399 399 399 403 
2030 Notes(4)
1,238 1,111 1,238 1,113 
2040 Notes(4)
341 252 341 255 
2047 Notes(4)
392 324 392 322 
2048 Notes(4)
674 604 674 607 
2050 Notes(4)
888 591 888 585 
_______________________
(1)The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.
(2)The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.
(3)The carrying amount approximates fair value as the instruments are marked-to-market and held at fair value on the Consolidated Balance Sheets.
(4)The fair value of the Note is obtained from pricing services engaged by the Company, and the Company receives one price for each security. The fair value provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. The inputs to the valuation techniques applied by the pricing services are typically benchmark yields, benchmark security prices, credit spreads, reported trades and broker-dealer quotes, all with reasonable levels of transparency.
Derivative Instruments Notional Amount Outstanding
The following table shows the notional amount of the Company’s derivative instruments outstanding as of June 30, 2026 and December 31, 2025:
(DOLLARS IN MILLIONS)June 30, 2026December 31, 2025
Foreign currency contracts(1)
$(2,965)$(1,840)
Cross currency swaps2,400 1,900 
_______________________
(1)Foreign currency contracts are presented net of the outstanding buy/(sell) instruments.
Derivative Instruments Measured at Fair Value
The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected on the Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025:
June 30, 2026
(DOLLARS IN MILLIONS)Fair Value of
Derivatives
Designated as
Hedging
Instruments		Fair Value of
Derivatives Not
Designated as
Hedging
Instruments		Total Fair Value
Derivative assets(1)
Foreign currency forward contracts$— $2 $2 
Cross currency swaps11 — 11 
Total derivative assets$11 $2 $13 
Derivative liabilities(2)
Foreign currency forward contracts$— $49 $49 
Cross currency swaps205 — 205 
Total derivative liabilities$205 $49 $254 
December 31, 2025
(DOLLARS IN MILLIONS)Fair Value of
Derivatives
Designated as
Hedging
Instruments		Fair Value of
Derivatives Not
Designated as
Hedging
Instruments		Total Fair Value
Derivative assets(1)
Foreign currency forward contracts$— $17 $17 
Cross currency swaps1 — 1 
Total derivative assets$1 $17 $18 
Derivative liabilities(2)
Foreign currency forward contracts$— $3 $3 
Cross currency swaps238 — 238 
Total derivative liabilities$238 $3 $241 
 _______________________
(1)Derivative assets are recorded to Prepaid expenses and other current assets on the Consolidated Balance Sheets.
(2)Derivative liabilities are recorded to Other current liabilities and Other liabilities on the Consolidated Balance Sheets.
Derivative Instruments Which Were Not Designated as Hedging Instruments
The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025:
Amount of Gain (Loss)
Recognized in Income on
Derivative Settlements		Amount of Gain (Loss) Recognized in Income on Changes in Fair ValueLocation of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN MILLIONS)Three Months Ended June 30,Three Months Ended June 30,
2026202520262025
Foreign currency forward contracts(1)
$(9)$93 $(34)$36 Other expense, net
Amount of Gain (Loss)
Recognized in Income on
Derivative Settlements		Amount of Gain (Loss) Recognized in Income on Changes in Fair ValueLocation of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN MILLIONS)Six Months Ended June 30,Six Months Ended June 30,
2026202520262025
Foreign currency forward contracts(1)
$(19)$115 $(61)$66 Other expense, net
_______________________
(1)The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods.
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments
The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025:

Amount of Gain (Loss)
Recognized in OCI on
Derivative and Non-Derivative (Effective
Portion)		Location of Gain (Loss)
Reclassified from Accumulated Other Comprehensive Income (“AOCI”) into Income (Effective Portion)		Amount of Gain (Loss)
Reclassified from
AOCI into
Income (Effective
Portion)
Three Months Ended June 30,Three Months Ended June 30,
(DOLLARS IN MILLIONS)2026202520262025
Derivatives in Cash Flow Hedging Relationships:
Commodity contracts$(1)$— Income (loss) from Discontinued Operations$— $1 
Interest rate swaps(1)
— — Interest expense— (1)
Derivatives in Net Investment Hedging Relationships:
Cross currency swaps(8)(132)N/A— — 
Non-Derivatives in Net Investment Hedging Relationships:
2026 Euro Notes(8)(78)N/A— — 
Tax benefit4 49 — — 
Total$(13)$(161)$— $— 
Amount of Gain (Loss)
Recognized in OCI on
Derivative and Non-Derivative (Effective
Portion)		Location of Gain (Loss)
Reclassified from AOCI into Income (Effective Portion)		Amount of Gain (Loss)
Reclassified from
AOCI into
Income (Effective
Portion)
Six Months Ended June 30,Six Months Ended June 30,
 (DOLLARS IN MILLIONS)2026202520262025
Derivatives in Cash Flow Hedging Relationships:
Commodity contracts$3 $(1)Income (loss) from Discontinued Operations$— $1 
Interest rate swaps(1)
— — Interest expense— (1)
Derivatives in Net Investment Hedging Relationships:
Cross currency swaps43 (164)N/A— — 
Non-Derivatives in Net Investment Hedging Relationships:
2026 Euro Notes8 (115)N/A— — 
Tax (expense) benefit(12)66 — — 
Total$42 $(214)$— $— 
_______________________
(1)     Interest rate swaps were entered into as pre-issuance hedges for the Company’s bond offerings.