Business Divestitures and Assets and Liabilities Held for Sale (Tables)

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following table summarizes the fair value of sale consideration received in connection with the business divestiture:

(DOLLARS IN MILLIONS)
Cash proceeds from the buyer	$	2,564
Amount held in escrow	17
Earnout consideration	100
Direct costs to sell	(30)
Fair value of sale consideration	$	2,651

The following table summarizes the different components of net proceeds received from the business divestiture presented under Cash flows from investing activities:

(DOLLARS IN MILLIONS)
Cash proceeds from the buyer	$	2,564
Cash transferred to the buyer	(29)
Net Cash flows from investing activities	$	2,535

The major classes of assets and liabilities sold consisted of the following:

(DOLLARS IN MILLIONS)	May 1, 2025
Assets
Cash and cash equivalents	$	29
Trade receivables, net	218
Inventories	289
Property, plant and equipment, net	439
Goodwill(1)	1,190
Other intangible assets, net	1,093
Operating lease right-of-use assets	68
Deferred tax assets	17
Other assets	116
Less: Loss recognized on assets held-for-sale(2)	(307)
Total assets	3,152
Liabilities
Accounts payable	$	(131)
Deferred tax liability	(75)
Other liabilities	(193)
Total liabilities	(399)
Equity
Accumulated other comprehensive income - currency translation adjustment	$	49
Accumulated other comprehensive income - pension adjustment	(26)
Non-controlling Interests (NCI)	(4)
Total equity	19
Carrying value of net assets (adjusted for currency translation, pension, and NCI adjustments)	$	2,772

_______________________

(1) The goodwill balance is presented net of $64 million of goodwill impairment recorded in 2024.

(2) A loss was recorded on assets held-for-sale in the amount of $307 million through March 31, 2025.

The following table summarizes the fair value of sale consideration received in connection with the business divestiture:

(DOLLARS IN MILLIONS)
Cash proceeds from the buyer	$	161
Direct costs to sell	(3)
Fair value of sale consideration	$	158

The following table summarizes the different components of net proceeds received from the business divestiture presented under Cash flows from investing activities:

(DOLLARS IN MILLIONS)
Cash proceeds from the buyer	$	161
Cash transferred to the buyer	(9)
Net Cash flows from investing activities	$	152

The major classes of assets and liabilities sold consisted of the following:

(DOLLARS IN MILLIONS)	May 9, 2025
Assets
Cash and cash equivalents	$	9
Trade receivables, net	33
Inventories	15
Property, plant and equipment, net	60
Goodwill	77
Other intangible assets, net	19
Other assets	40
Total assets	253
Liabilities
Accounts payable	$	(30)
Other liabilities	(50)
Total liabilities	(80)
Equity
Accumulated other comprehensive income - currency translation adjustment	(1)
Accumulated other comprehensive income - pension adjustment	(24)
Total equity	(25)
Carrying value of net assets (adjusted for currency translation and pension adjustments)	$	148

(DOLLARS IN MILLIONS)	September 30, 2025		December 31, 2024
Assets
Cash and cash equivalents	$	—	$	2
Trade receivables, net	16		187
Inventories	48		274
Property, plant and equipment, net	92		451
Goodwill	—		1,216
Other intangible assets, net	88		1,078
Operating lease right-of-use assets	7		57
Other assets	9		108
Less: Loss recognized on assets held-for-sale	(108)		(317)
Total assets held-for-sale	$	152	$	3,056
Liabilities
Accounts payable	$	35	$	90
Deferred tax liability	—		51
Other liabilities	9		191
Total liabilities held-for-sale	$	44	$	332