v3.25.4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Derivative Assets at Fair Value
The following table presents the gross fair values of our outstanding derivative instruments.

Fair Value of DerivativesDecember 31, 2025December 31, 2024
Gross NotionalFair Value – AssetsFair Value – LiabilitiesGross NotionalFair Value – AssetsFair Value – Liabilities
Foreign currency forward contracts$1,508 $52 $23 $1,210 $43 $11 
Derivatives accounted for as cash flow hedges1,508 52 23 1,210 43 11 
Cross-currency swaps(1)
4,115 51 135 1,995 15 46 
Foreign currency forward and options contracts2,581 50 37 1,731 30 18 
Derivatives accounted for as net investment hedges6,697 101 172 3,726 45 64 
Interest rate swaps(1)
2,700 28 — 2,700 — 51 
Derivatives accounted for as fair value hedges2,700 28 — 2,700 — 51 
Foreign currency forward contracts4,761 20 7 3,925 11 29 
Other derivatives(1)(2)
320 56 5 370 47 — 
Derivatives not designated as hedging instruments5,081 76 12 4,294 57 29 
Total derivatives$15,986 $256 $207 $11,930 $145 $155 
(1) As of December 31, 2025, accrued interest is included in the above fair value and is not considered material. As of December 31, 2024, accrued interest is excluded from the above fair value and is not considered material.
(2) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
Schedule of Derivative Liabilities at Fair Value
The following table presents the gross fair values of our outstanding derivative instruments.

Fair Value of DerivativesDecember 31, 2025December 31, 2024
Gross NotionalFair Value – AssetsFair Value – LiabilitiesGross NotionalFair Value – AssetsFair Value – Liabilities
Foreign currency forward contracts$1,508 $52 $23 $1,210 $43 $11 
Derivatives accounted for as cash flow hedges1,508 52 23 1,210 43 11 
Cross-currency swaps(1)
4,115 51 135 1,995 15 46 
Foreign currency forward and options contracts2,581 50 37 1,731 30 18 
Derivatives accounted for as net investment hedges6,697 101 172 3,726 45 64 
Interest rate swaps(1)
2,700 28 — 2,700 — 51 
Derivatives accounted for as fair value hedges2,700 28 — 2,700 — 51 
Foreign currency forward contracts4,761 20 7 3,925 11 29 
Other derivatives(1)(2)
320 56 5 370 47 — 
Derivatives not designated as hedging instruments5,081 76 12 4,294 57 29 
Total derivatives$15,986 $256 $207 $11,930 $145 $155 
(1) As of December 31, 2025, accrued interest is included in the above fair value and is not considered material. As of December 31, 2024, accrued interest is excluded from the above fair value and is not considered material.
(2) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
Schedule of Effect of Derivatives Instruments on Statement of Financial Position and Statement of Income
The following table presents amounts recorded in Long-term borrowings in the Consolidated Statements of Financial Position related to cumulative basis adjustment for fair value hedges.
December 31, 2025December 31, 2024
Carrying amountCumulative basis adjustment included in the carrying amount
Carrying amount
Cumulative basis adjustment included in the carrying amount
Long-term borrowings designated as fair value hedges
$2,722 $27 $2,644 $(51)
The tables below present the gains (losses) on our derivative financial instruments and hedging activity in the Consolidated Statements of Income.

Derivative Financial Instruments and Hedging Activity
For the year ended December 31, 2025
Cost of productsCost of services
SG&A
Interest and other financial charges – net
Other(4)
Foreign currency forward contracts
$18 $5 $— $— $— 
Effects of cash flow hedges18 5 — — — 
Cross-currency swaps— — — 38 — 
Foreign currency forward and options contracts
— — — 21 — 
Effects of net investment hedges(1)
— — — 59 — 
Interest rate swaps(2)
— — — 63 — 
Debt basis adjustment on Long-term borrowings
— — — (78)— 
Effects of fair value hedges
— — — (15)— 
Foreign currency forward contracts
28 7 — — (1)
Other derivatives(3)
— — 5 — 9 
Effects of derivatives not designated as hedging instruments
28 7 5 — 7 

For the year ended December 31, 2024
Cost of productsCost of servicesSG&AInterest and other financial charges – net
Other(4)
Foreign currency forward contracts$(4)$(1)$— $— $— 
Effects of cash flow hedges(4)(1)— — — 
Cross-currency swaps— — — 31 — 
Foreign currency forward and option contracts— — — 11 — 
Effects of net investment hedges(1)
— — — 42 — 
Interest rate swaps(2)
— — — (103)— 
Debt basis adjustment on Long-term borrowings— — — 76 — 
Effects of fair value hedges— — — (27)— 
Foreign currency forward contracts(37)(9)— — 1 
Other derivatives(3)
— — 8 — 37 
Effects of derivatives not designated as hedging instruments(37)(9)8 — 38 
For the year ended December 31, 2023
Cost of productsCost of servicesSG&AInterest and other financial charges – net
Other(4)
Foreign currency forward contracts$23 $6 $— $— $— 
Effects of cash flow hedges23 6 — — — 
Cross-currency swaps— — — 34 — 
Foreign currency forward and option contracts— — — 3 — 
Effects of net investment hedges(1)
— — — 37 — 
Interest rate swaps(2)
— — — 24 — 
Debt basis adjustment on Long-term borrowings— — — (25)— 
Effects of fair value hedges— — — (1)— 
Foreign currency forward contracts3 2 — — 5 
Other derivatives(3)
— — 10 — 47 
Effects of derivatives not designated as hedging instruments3 2 10 — 52 
(1) Changes in fair value related to components other than the spot rate are excluded from effectiveness testing for the years ended December 31, 2025, 2024, and 2023.
(2) Amount includes interest expense on interest rate derivatives of $(15) million, $(27) million, and $(1) million for the years ended December 31, 2025, 2024, and 2023 respectively.
(3) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
(4) Amounts are inclusive of gains (losses) in Other (income) expense – net in the Consolidated Statements of Income.
Schedule of Derivative Pre-tax Gains (Losses) Recognized in OCI
The table below presents the pre-tax gains (losses) recognized in OCI associated with the Company’s cash flow and net investment hedges.
Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
For the years ended December 31
202520242023
Cash flow hedges$— $44 $(6)
Net investment hedges(1)
(263)80 (97)
(1) Amounts recognized in OCI for excluded components for the periods presented were immaterial.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table represents assets and liabilities that are recorded and measured at fair value on a recurring basis.

Fair Value of Assets and Liabilities Measured on a Recurring Basis
As of December 31, 2025
As of December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Money market funds
$— $399 $— $399 $— $312 $— $312 
Investment securities47 — 30 77 32 — — 32 
Derivatives
— 256 — 256 — 145 — 145 
Liabilities:
Derivatives
— 207 — 207 — 155 — 155 
Contingent consideration— — 30 30 — — 34 34