v3.26.3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Estimated Fair Values and Carrying Values of Long-Term Debt

The estimated fair value and carrying value of our long-term debt consisted of the following:

 

 

SEPTEMBER 30,
2026

 

 

DECEMBER 31,
2025

 

DOLLAR AMOUNTS IN MILLIONS

 

CARRYING
VALUE

 

 

FAIR VALUE
(LEVEL 2)

 

 

CARRYING
VALUE

 

 

FAIR VALUE
(LEVEL 2)

 

Long-term debt (including current maturities), line of credit and commercial paper:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed rate

 

$

3,707

 

 

$

3,504

 

 

$

4,225

 

 

$

4,242

 

Variable rate

 

 

1,347

 

 

 

1,350

 

 

 

1,347

 

 

 

1,350

 

Commercial paper program

 

 

300

 

 

 

300

 

 

 

—

 

 

 

—

 

Total debt

 

$

5,354

 

 

$

5,154

 

 

$

5,572

 

 

$

5,592

 
Schedule of Current and Noncurrent Fair Value of Outstanding Derivatives Designated as Cash Flow Hedging Instruments

The current and noncurrent fair value of our outstanding derivatives designated as cash flow hedging instruments as recorded on our Consolidated Balance Sheet are summarized below:

 

 

DERIVATIVE ASSETS

 

 

DERIVATIVE LIABILITIES

 

DOLLAR AMOUNTS IN MILLIONS

 

PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

 

OTHER ASSETS

 

 

ACCRUED LIABILITIES

 

 

OTHER LIABILITIES

 

AS OF SEPTEMBER 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

9

 

 

$

9

 

 

$

—

 

 

$

—

 

Foreign currency forward contracts

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

Total fair value

 

$

10

 

 

$

9

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

AS OF DECEMBER 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

—

 

 

$

—

 

 

$

1

 

 

$

2

 

Foreign currency forward contracts

 

 

2

 

 

 

1

 

 

 

—

 

 

 

—

 

Total fair value

 

$

2

 

 

$

1

 

 

$

1

 

 

$

2

 

 
Schedule of Outstanding Derivative Instruments Recognized in Accumulated Other Comprehensive Loss

The pre-tax change in unrealized gain or loss on our outstanding derivative instruments recognized in "Other comprehensive income" in our Consolidated Statement of Comprehensive Income and recorded in "Accumulated other comprehensive loss" on our Consolidated Balance Sheet are summarized below:

 

 

QUARTER ENDED

 

 

YEAR-TO-DATE ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

SEPTEMBER 2026

 

 

SEPTEMBER 2025

 

 

SEPTEMBER 2026

 

 

SEPTEMBER 2025

 

Interest rate swaps

 

$

10

 

 

$

(2

)

 

$

21

 

 

$

(2

)

Foreign currency forward contracts

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

6

 

Total change in unrealized gain or loss on cash flow hedges

 

$

9

 

 

$

(2

)

 

$

20

 

 

$

4