Financial Instruments and Risk Management (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Notional Amounts of Outstanding Derivative Instruments |
As of December 31, 2025, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated forecasted transactions: | | | | | | | | | | | | | | | | In millions of Euros | | Notional amount for hedge on
forecasted R&D and other
operating expenses | | Notional amount for hedge on
forecasted manufacturing costs | | Forward contracts | | 387 | | 763 | | Currency collars | | 346 | | 593 | | | | | | | | | | | | | | | |
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| Fair Value of Derivative Instruments |
Information on fair value of derivative instruments and their location in the consolidated balance sheets as of December 31, 2025 and December 31, 2024 is presented in the table below:
| | | | | | | | | | | | | | | | | | | | | | | | | As of December 31,
2025 | | As of December 31,
2024 | | Asset Derivatives | | Balance sheet classification | | Fair
value | | Fair
value | | Derivatives designated as a hedge: | | | | | | | | Foreign exchange forward contracts | | Other current assets | | 68 | | — | | | | | | | | | Currency collars | | Other current assets | | 6 | | — | | | | | | | | | Total derivatives designated as a hedge: | | | | 74 | | — | | Derivatives not designated as a hedge: | | | | | | | | Foreign exchange forward contracts | | Other current assets | | 2 | | 10 | | Total derivatives not designated as a hedge: | | | | 2 | | 10 | | Total Derivatives | | | | 76 | | 10 |
| | | | | | | | | | | | | | | | | | | | | | | | | As of December 31,
2025 | | As of December 31,
2024 | | Liability Derivatives | | Balance sheet classification | | Fair
value | | Fair
value | | Derivatives designated as a hedge: | | | | | | | | Foreign exchange forward contracts | | Other payables and
accrued liabilities | | (1) | | (66) | | Foreign exchange forward contracts | | Other non-current liabilities | | — | | (3) | | Currency collars | | Other payables and
accrued liabilities | | (1) | | (15) | | | | | | | | | Total derivatives designated as a hedge: | | | | (2) | | (84) | | Derivatives not designated as a hedge: | | | | | | | | Foreign exchange forward contracts | | Other payables and
accrued liabilities | | (13) | | (5) | | Total derivatives not designated as a hedge: | | | | (13) | | (5) | | Total Derivatives | | | | (15) | | (89) |
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| Effect on Consolidated Statements of Income of Derivative Instruments |
The effect of derivative instruments designated as cash flow hedge on the consolidated statements of income for the year ended December 31, 2025 and December 31, 2024 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the consolidated statements of equity as of December 31, 2025 and December 31, 2024 is presented in the table below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain (loss) deferred in
OCI on derivative | | Location of gain (loss) | | Gain (loss) reclassified from
OCI into earnings | | | December 31,
2025 | | December 31,
2024 | | reclassified from OCI into
earnings | | December 31,
2025 | | December 31,
2024 | | Foreign exchange forward contracts | | 49 | | | (54) | | | Cost of sales | | 24 | | | 13 | | | Foreign exchange forward contracts | | 4 | | | (7) | | | Selling, general and administrative expenses | | 3 | | | 1 | | | Foreign exchange forward contracts | | 17 | | | (17) | | | Research and development expenses | | 10 | | | 2 | | | Currency collars | | 6 | | | (15) | | | Cost of sales | | 11 | | | — | | | Currency collars | | 1 | | | (2) | | | Selling, general and administrative expenses | | 1 | | | — | | | Currency collars | | 3 | | | (4) | | | Research and development expenses | | 5 | | | — | | | Total | | 80 | | | (99) | | | | | 54 | | | 16 | |
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| Effect on Consolidated Statements of Income of Derivative Instruments Not Designated as Hedge |
The effect on the consolidated statements of income for the year ended December 31, 2025 and December 31, 2024 of derivative instruments not designated as a hedge is presented in the table below: | | | | | | | | | | | | | | | | | | | | | | | Location of gain | | Gain (loss) recognized in earnings | | | (loss) recognized
in earnings | | December 31,
2025 | | December 31,
2024 | | Foreign exchange forward contracts | | Other income and expenses, net | | (32) | | | 9 | | Total | | | | (32) | | | 9 |
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| Schedule of Financial Assets (Liabilities) Measured at Fair Value on Recurring Basis |
The table below details financial assets (liabilities) measured at fair value on a recurring basis as of December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements using | | | December 31,
2025 | | Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Marketable securities – U.S. Treasury debt securities | | 985 | | | 985 | | | — | | | — | | | Cash equivalents – Short-term investments | | 313 | | | — | | | 313 | | | — | | | Equity securities measured at fair value through earnings | | 165 | | | 165 | | | — | | | — | | | Derivative assets designated as cash flow hedge | | 74 | | | — | | | 74 | | | — | | | Derivative assets not designated as cash flow hedge | | 2 | | | — | | | 2 | | | — | | | Derivative liabilities designated as cash flow hedge | | (2) | | | — | | | (2) | | | — | | | Derivative liabilities not designated as cash flow hedge | | (13) | | | — | | | (13) | | | — | | | Contingent consideration on business acquisition | | (18) | | | — | | | — | | | (18) | | | Total | | 1,506 | | | 1,150 | | | 374 | | | (18) | |
The table below details financial assets (liabilities) measured at fair value on a recurring basis as of December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements using | | | December 31,
2024 | | Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Marketable securities – U.S. Treasury debt securities | | 2,452 | | | 2,452 | | | — | | | — | | | | | | | | | | | | Equity securities measured at fair value through earnings | | 88 | | | 88 | | | — | | | — | | | Derivative assets designated as cash flow hedge | | — | | | — | | | — | | | — | | | Derivative assets not designated as cash flow hedge | | 10 | | | — | | | 10 | | | — | | | Derivative liabilities designated as cash flow hedge | | (84) | | | — | | | (84) | | | — | | | Derivative liabilities not designated as cash flow hedge | | (5) | | | — | | | (5) | | | — | | | Contingent consideration on business acquisitions | | (15) | | | — | | | — | | | (15) | | | Total | | 2,446 | | | 2,540 | | | (79) | | | (15) | |
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| Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost |
The following table includes additional fair value information on financial assets and liabilities as of December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2025 | | 2024 | | | Level | | Carrying
Amount | | Estimated
Fair Value | | Carrying
Amount | | Estimated
Fair Value | Cash equivalents (1) | | 1 - 2 | | 2,264 | | | 2,264 | | | 1,611 | | | 1,611 | | | | | | | | | | | | | | Short-term, deposits | | 1 | | 1,100 | | | 1,100 | | | 1,450 | | | 1,450 | | | Long-term debt | | | | | | | | | | | | – Bank loans (including current portion) | | 2 | | 1,281 | | | 1,281 | | | 1,389 | | | 1,389 | | | – Finance leases (including current portion) | | 2 | | 103 | | | 103 | | | 66 | | | 66 | | – Senior unsecured convertible bonds issued on August 4, 2020 (2) | | 1 | | 749 | | | 731 | | | 1,498 | | | 1,442 | |
(1) Cash equivalents primarily correspond to deposits at call with banks, money market funds and other short-term investments. (2) The carrying amount as of December 31, 2025 of the senior unsecured convertible bonds as reported above, corresponds to the nominal value of the bonds, net of $1 million unamortized debt issuance costs. The fair value represented the market price of the bonds trading on the Frankfurt Stock Exchange.
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| Schedule of Methodologies Used to Estimate Fair Value |
The methodologies used to estimate fair value are as follows: | | | | | | | Components | Methodology used to estimate fair value | | Debt securities classified as available-for-sale | Quoted market prices for identical instruments | | Foreign exchange forward contracts, currency options and collars | Quoted market prices for similar instruments | | Equity securities measured at fair value through earnings | Quoted market prices for identical instruments | | Equity securities carried at cost as a measurement alternative | Valuation of the underlying investments on a new round of third-party financing or upon liquidation | | Long-term debt and current portion of long-term debt | Future cash flows on a borrowing-by-borrowing basis and discounting these future cash flows using the Company's incremental borrowing rates for similar types of borrowing arrangements. For convertible bonds, the fair value represents the market price of the bonds trading on the Frankfurt Stock Exchange | | Cash and cash equivalents, short-term deposits, accounts receivable, short-term borrowings, and accounts payable | The carrying amounts reflected in the consolidated financial statements are considered as reasonable estimates of fair value due to the relatively short period of time between the origination of the instruments and their expected realization. |
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