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Financial Instruments
 9 Months Ended
Sep. 30, 2025
Investments, All Other Investments [Abstract]  
Financial Instruments FINANCIAL INSTRUMENTS
Fair Value
Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy:
•Level 1 — Quoted prices for identical instruments in active markets.
•Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
•Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company also considers counterparty credit risk in its assessment of fair value. The Company determines the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the Secured Overnight Financing Rate (“Term SOFR”) swap curve and forward interest and exchange rates at period end. Such instruments are classified as Level 2 based on the observability of significant inputs to the model. Instruments classified as Level 3 include the earnout receivable as discussed in Note 3, as well as instruments held in pension asset trusts as discussed in Note 8 of the Company’s 2024 Form 10-K.
The carrying values and the estimated fair values of financial instruments at September 30, 2025 and December 31, 2024 consisted of the following:
 September 30, 2025December 31, 2024
(DOLLARS IN MILLIONS)Carrying ValueFair ValueCarrying ValueFair Value
LEVEL 1
Cash and cash equivalents(1)
$621 $621 $469 $469 
LEVEL 2
Credit facilities and bank overdrafts(2)
2 2 2 2 
Derivatives
Derivative assets(3)
3 3 9 9 
Derivative liabilities(3)
249 249 129 129 
Commercial paper(2)
370 370 — — 
Long-term debt:
2025 Notes(4)
— — 1,000 972 
2026 Euro Notes(4)
938 932 827 813 
2027 Notes(4)
805 761 1,209 1,102 
2028 Notes(4)
399 402 398 391 
2030 Notes(4)
1,239 1,104 1,507 1,274 
2040 Notes(4)
342 253 771 536 
2047 Notes(4)
392 319 495 392 
2048 Notes(4)
674 602 787 686 
2050 Notes(4)
888 589 1,568 985 
2026 Term Loan Facility(5)
— — 413 413 
LEVEL 3
Earnout Receivable(6)
100 100 — — 
_______________________
(1)The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.
(2)The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.
(3)The carrying amount approximates fair value as the instruments are marked-to-market and held at fair value on the Consolidated Balance Sheets.
(4)The fair value of the Note is obtained from pricing services engaged by the Company, and the Company receives one price for each security. The fair value provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. The inputs to the valuation techniques applied by the pricing services are typically benchmark yields, benchmark security prices, credit spreads, reported trades and broker-dealer quotes, all with reasonable levels of transparency.
(5)The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates.
(6)The earnout receivable is recognized at fair value. Refer to Note 3 for further discussion of the valuation method and inputs used.
Derivatives
Foreign Currency Forward Contracts
The Company periodically enters into foreign currency forward contracts with the objective of managing our exchange rate risk related to foreign currency denominated monetary assets and liabilities of our operations. These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions.
Commodity Contracts
The Company utilizes options that are not designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of inventory such as soybeans.
The Company also utilizes swaps that are designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of natural gas used in our manufacturing process.
Hedges Related to Issuances of Debt
As of September 30, 2025, the Company had designated approximately $938 million of Euro Notes as a hedge of a portion of its net European investments. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in Other comprehensive income (“OCI”) as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).
Cross Currency Swaps
The Company has twelve EUR/USD cross currency swaps with a notional value of $1.4 billion that mature through November 2030. The swaps all qualified as net investment hedges in order to mitigate a portion of the Company’s net European investments from foreign currency risk. As of September 30, 2025, the twelve swaps were in a liability position with an aggregate fair value of $240 million, which were classified as Other liabilities on the Consolidated Balance Sheets. Changes in fair value related to cross currency swaps are recorded in OCI.
The following table shows the notional amount of the Company’s derivative instruments outstanding as of September 30, 2025 and December 31, 2024:
(DOLLARS IN MILLIONS)September 30, 2025December 31, 2024
Foreign currency contracts(1)
$(1,829)$(1,512)
Commodity contracts(1)
3 7 
Cross currency swaps1,400 1,400 
_______________________
(1)Foreign currency contracts and commodity contracts are presented net of contracts bought and sold.
The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected on the Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024:
 September 30, 2025
(DOLLARS IN MILLIONS)Fair Value of
Derivatives
Designated as
Hedging
Instruments		Fair Value of
Derivatives Not
Designated as
Hedging
Instruments		Total Fair Value
Derivative assets(1)
Foreign currency forward contracts$— $3 $3 
Total derivative assets$— $3 $3 
Derivative liabilities(2)
Foreign currency contracts$— $8 $8 
Cross currency swaps240 — 240 
Commodity contracts— 1 1 
Total derivative liabilities$240 $9 $249 
 December 31, 2024
(DOLLARS IN MILLIONS)Fair Value of
Derivatives
Designated as
Hedging
Instruments		Fair Value of
Derivatives Not
Designated as
Hedging
Instruments		Total Fair Value
Derivative assets(1)
Foreign currency contracts$— $8 $8 
Commodity contracts 1 — 1 
Total derivative assets$1 $8 $9 
Derivative liabilities(2)
Foreign currency contracts$— $39 $39 
Cross currency swaps90 — 90 
Total derivative liabilities$90 $39 $129 
 _______________________
(1)Derivative assets are recorded to Prepaid expenses and other current assets on the Consolidated Balance Sheets.
(2)Derivative liabilities are recorded to Other current liabilities and Other liabilities on the Consolidated Balance Sheets.
The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024:
Amount of Gain (Loss)
Recognized in Income on
Derivative Settlements		Amount of Gain (Loss) Recognized in Income on Changes in Fair ValueLocation of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN MILLIONS)Three Months Ended September 30,Three Months Ended September 30,
2025202420252024
Foreign currency contracts(1)
$16 $62 $(41)$80 Other expense, net
Commodity contracts— — 1 — Cost of sales
Total$16 $62 $(40)$80 
Amount of Gain (Loss)
Recognized in Income on
Derivative Settlements		Amount of Gain (Loss) Recognized in Income on Changes in Fair ValueLocation of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN MILLIONS)Nine Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Foreign currency contracts(1)
$131 $21 $25 $16 Other expense, net
Commodity contracts— (1)1 — Cost of sales
Total$131 $20 $26 $16 
_______________________
(1)The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods.
The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024:

 Amount of Gain (Loss)
Recognized in OCI on
Derivative and Non-Derivative (Effective
Portion)		Location of Gain (Loss)
Reclassified from Accumulated Other Comprehensive Income (“AOCI”) into Income (Effective Portion)		Amount of Gain (Loss)
Reclassified from
AOCI into
Income (Effective
Portion)
 Three Months Ended September 30,Three Months Ended September 30,
(DOLLARS IN MILLIONS)2025202420252024
Derivatives in Cash Flow Hedging Relationships:
Commodity contracts$— $1 Cost of sales$— $1 
Interest rate swaps(1)
— — Interest expense— — 
Derivatives in Net Investment Hedging Relationships:
Cross currency swaps11 (38)N/A— — 
Non-Derivatives in Net Investment Hedging Relationships:
2026 Euro Notes3 (28)N/A— — 
Total$14 $(65)$— $1 
 Amount of Gain (Loss)
Recognized in OCI on
Derivative and Non-Derivative (Effective
Portion)		Location of Gain (Loss)
Reclassified from AOCI into Income (Effective Portion)		Amount of Gain (Loss)
Reclassified from
AOCI into
Income (Effective
Portion)
 Nine Months Ended September 30,Nine Months Ended September 30,
 (DOLLARS IN MILLIONS)2025202420252024
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts$— $(7)Cost of sales$— $— 
Commodity contracts(1)2 Cost of sales1 1 
Interest rate swaps(1)
— — Interest expense(1)— 
Derivatives in Net Investment Hedging Relationships:
Cross currency swaps(115)(2)N/A— — 
Non-Derivatives in Net Investment Hedging Relationships:
2024 Euro Notes— 3 N/A— — 
2026 Euro Notes(84)(8)N/A— — 
Total$(200)$(12)$— $1 
_______________________
(1)     Interest rate swaps were entered into as pre-issuance hedges for the Company’s bond offerings.
The ineffective portion of the above noted net investment hedges was approximately $3 million and $10 million for the three and nine months ended September 30, 2025, respectively, and $3 million and $11 million for the three and nine months ended September 30, 2024, respectively, was recorded as a reduction to Interest expense on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).
At September 30, 2025, based on current market rates, the Company does not expect any material derivative losses (net of tax), included in AOCI, to be reclassified into earnings within the next 12 months.
Subsequent Event
On October 1, 2025, we entered into agreements with various banks to expand our cross currency swap capacity by $500 million, bringing the total notional value of swaps to $1.9 billion. The swaps mature in September 2028 and November 2030 and qualify as net investment hedges in order to mitigate a portion of the Company’s net European investments from foreign currency risk.