The Company’s financial assets and liabilities carried at fair value as of December 31, 2025 are classified below (in millions):


	Level 1		Level 2		Level 3		Total
Assets:


Investments related to the deferred compensation plan	$	48	$	—	$	—	$	48
Total Assets at fair value	$	48	$	—	$	—	$	48
Liabilities:
Foreign exchange contracts (1)	$	2	$	5	$	—	$	7

Liabilities related to the deferred compensation plan	48		—		—		48
Total Liabilities at fair value	$	50	$	5	$	—	$	55

The Company’s financial assets and liabilities carried at fair value as of December 31, 2024 are classified below (in millions):


	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts (1)	$	1	$	30	$	—	$	31

Investments related to the deferred compensation plan	41		—		—		41
Total Assets at fair value	$	42	$	30	$	—	$	72
Liabilities:


Liabilities related to the deferred compensation plan	41		—		—		41
Total Liabilities at fair value	$	41	$	—	$	—	$	41

(1)The fair value of the foreign exchange contracts is calculated as follows:

•Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points (Level 2).

•Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points (Level 2). Except, if the hedge has matured but not yet settled as of period end, then the fair value is calculated at the amount at which the hedge is being settled (Level 1).