Derivative Financial Instruments

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Cash Flow Hedges

Our cash flow hedges include foreign currency forward contracts, commodity swaps and commodity purchase contracts. We use foreign currency forward contracts to manage currency risk associated with certain expected sales and purchases through 2032. We use commodity derivatives, such as fixed-price purchase commitments and swaps to hedge against potentially unfavorable price changes for commodities used in production. Our commodity contracts hedge forecasted transactions through 2029.

Derivative Instruments Not Receiving Hedge Accounting Treatment

We hold certain foreign currency forward contracts which do not qualify for hedge accounting treatment.

Notional Amounts and Fair Values

The notional amounts and fair values of derivative instruments in the Condensed Consolidated Statements of Financial Position were as follows:

	Notional amounts (1)		Other assets		Accrued liabilities
	March 31 2026	December 31 2025	March 31 2026	December 31 2025	March 31 2026	December 31 2025
Derivatives designated as hedging instruments:
Foreign exchange contracts	$5,694	$5,736	$148	$143	($124)	($77)
Commodity contracts	397	435	111	92		(1)
Derivatives not receiving hedge accounting treatment:
Foreign exchange contracts	290	320	4	3	(3)	(10)
Total derivatives	$6,381	$6,491	$263	$238	($127)	($88)
Netting arrangements			(67)	(45)	67	45
Net recorded balance			$196	$193	($60)	($43)

(1)Notional amounts represent the gross contract/notional amount of the derivatives outstanding.

(Losses)/gains associated with our hedging transactions and forward points recognized in Other comprehensive income, net of tax are presented in the following table:

	Three months ended March 31
	2026	2025
Recognized in Other comprehensive income, net of tax:
Foreign exchange contracts	($25)	$67
Commodity contracts	17	1

Gains/(losses) associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table:

	Three months ended March 31
	2026	2025
Foreign exchange contracts
Revenues	$1
Costs and expenses	(6)	($4)
General and administrative expense	11	(10)
Commodity contracts
Costs and expenses	$2	($11)
General and administrative expense	2	2

Gains/(losses) related to undesignated derivatives on foreign exchange and commodity cash flow hedging transactions recognized in Other income, net were insignificant for the three months ended March 31, 2026 and 2025.

Based on our portfolio of cash flow hedges, we expect to reclassify gains of $8 (pre-tax) out of AOCI into earnings during the next 12 months.

We have derivative instruments with credit-risk-related contingent features. If we default on our five-year credit facilities, our derivative counterparties could require settlement for foreign exchange and certain commodity contracts with original maturities of at least five years. The fair value of those contracts in a net

liability position at March 31, 2026 was $4. For other particular commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings. At March 31, 2026, there was no collateral posted related to our derivatives.