FINANCIAL INSTRUMENTS |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company’s financial instruments may include long-term debt, interest rate and cross-currency swaps, commodity derivative contracts and foreign currency derivative contracts. All derivative contracts are placed with counterparties that have an S&P, or equivalent, investment grade credit rating at the time of the contracts’ placement. At September 30, 2026 and December 31, 2025, the Company had no derivative contracts that contained credit-risk-related contingent features. The Company is exposed to certain market risks relating to our ongoing business operations, including foreign currency exchange rate risk, commodity price risk and interest rate risk. The Company, at times, may use certain financial instruments, primarily derivative contracts, to protect against these risks. The Company uses financial instruments to manage foreign currency exchange rate risk related to forecasted cash flows, including capital expenditures, purchases, operating expenses or sales transactions, and the remeasurement of monetary assets and liabilities denominated in currencies other than the functional currency of the operating unit, and the foreign currency risk exposure associated with our net investment in certain foreign operations. As of September 30, 2026 and December 31, 2025, the U.S. Dollar equivalent notional values of outstanding currency derivative instruments used for foreign currency cash flow hedging were $79 million and $43 million, respectively. These amounts are primarily related to Euro denominated forward contracts at British Pound and Chinese Renminbi functional currency locations. The Company recognized immaterial amounts of gains and losses in Accumulated other comprehensive loss (AOCI) related to derivative instruments designated as foreign currency cash flow hedges, as defined by ASC Topic 815, “Derivatives and Hedging”, during the three months ended September 30, 2026 and December 31, 2025. The Company also recognized an immaterial amount of gains and losses in Selling, general and administrative expenses in Net earnings for the three and nine months ended September 30, 2026. Balances in AOCI are reclassified to earnings when transactions related to the underlying risk are recognized. As of September 30, 2026 there was an immaterial derivative asset balance and a $1 million liability balance recorded in the Consolidated Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815, “Derivatives and Hedging”. As of December 31, 2025, the amount of asset and liability balances related to foreign currency cash flow hedges were immaterial. There were no gains or losses recorded in income related to components excluded from the assessment of effectiveness for derivative instruments designated as cash flow hedges for the periods presented. The Company uses net investment hedges, as defined by ASC Topic 815, “Derivatives and Hedging” to mitigate the variability of the value of its investments in foreign currency denominated subsidiaries. During the three and nine months ended September 30, 2026 a gain of $1 million was recorded to AOCI. As of September 30, 2026, the notional value of the Company’s designated net investment hedge outstanding was less than $8 million. The table below shows deferred gains (losses) reported in AOCI related to current and historical financial instruments designated as net investment hedges.
The gains and (losses) attributable to the financial instruments designated as a net investment hedge were recognized in other comprehensive income (loss) during the periods presented below.
The Company utilizes foreign currency derivatives not designated as hedging instruments to mitigate the variability of the remeasurement of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. The Company entered into cross-currency swap instruments, resulting in a gain of $1 million for the three months ended September 30, 2026 and $4 million for the nine months ended September 30, 2026 which are included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. At September 30, 2026, the cross-currency swap had a fair value of $4 million and is recorded in Prepayments and other current assets in the Condensed Consolidated Balance Sheets.
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