Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

As of September 30, 2026, the Company had the following outstanding notional amounts related to commodity and foreign currency forward and option contracts designated as cash flow hedges that were entered into to hedge forecasted exposures:

Commodity

Quantity Hedged

Unit of Measure

Notional Amount
(Approximate USD Equivalent)

(in thousands)

(in millions)

Copper

54,026

pounds

355


Foreign Currency	Quantity Hedged	Unit of Measure	Notional Amount (Approximate USD Equivalent)

	(in millions)
Mexican Peso	18,912	MXN	$	1,051
Chinese Renminbi	1,247	RMB	$	186

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value of derivative financial instruments recorded in the consolidated balance sheet as of September 30, 2026 is as follows:


	Asset Derivatives			Liability Derivatives			Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet
	Balance Sheet Location	September 30, 2026		Balance Sheet Location	September 30, 2026		September 30, 2026

	(in millions)
Derivatives designated as cash flow hedges:
Commodity derivatives	Other current assets	$	46	Accrued liabilities	$	—	$	46
Foreign currency derivatives*	Other current assets	29		Other current assets	4		25

Commodity derivatives	Other long-term assets	9		Other long-term liabilities	—		9
Foreign currency derivatives*	Other long-term assets	1		Other long-term assets	—		1
Foreign currency derivatives*	Other long-term liabilities	—		Other long-term liabilities	3		(3)


Total derivatives designated as hedges		$	85		$	7

Derivatives not designated:

Foreign currency derivatives*	Other current assets	$	1	Other current assets	$	1	—
Foreign currency derivatives*	Accrued liabilities	—		Accrued liabilities	2		(2)



Total derivatives not designated as hedges		$	1		$	3

* Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets in accordance with accounting guidance related to the offsetting of amounts related to certain contracts.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The pre-tax effects of derivative financial instruments in the consolidated statements of operations and consolidated statements of comprehensive income for the three and nine months ended September 30, 2026 are as follows:


Three Months Ended September 30, 2026	Gain (Loss) Recognized in OCI		Gain Reclassified from OCI into Income

	(in millions)
Derivatives designated as cash flow hedges:
Commodity derivatives	$	24	$	19
Foreign currency derivatives	(21)		20


Total	$	3	$	39


	Loss Recognized in Income

	(in millions)
Derivatives not designated:

Foreign currency derivatives	$	(1)
Total	$	(1)


Nine Months Ended September 30, 2026	Gain (Loss) Recognized in OCI		Gain Reclassified from OCI into Income

	(in millions)
Derivatives designated as cash flow hedges:
Commodity derivatives	$	90	$	35
Foreign currency derivatives	73		39


Total	$	163	$	74


	Loss Recognized in Income

	(in millions)
Derivatives not designated:

Foreign currency derivatives	$	(3)
Total	$	(3)