OTHER INCOME (EXPENSE), NET

3 Months Ended

Mar. 31, 2026

Other Income and Expenses [Abstract]

The components of Other income (expense), net are as follows:


	Three Months Ended March 31,
In millions	2026		2025
Foreign currency gain (loss)	$	16	$	(8)
Gain on mark-to-market derivatives	2		—
Equity income	2		3
Expected return on pension assets/amortization	2		2
Other miscellaneous income, net	1		1
Total Other income (expense), net	$	23	$	(2)

During 2025, in connection with the acquisitions of Frauscher and Dellner Couplers, the Company entered into foreign exchange contracts for a notional value of €1,290 million to mitigate foreign currency exposure of the purchase prices. As part of the acquisition of Frauscher in the fourth quarter of 2025, the Company utilized foreign exchange forward contracts with a

notional value of €690 million. As part of the acquisition of Dellner Couplers in the first quarter of 2026, the Company utilized foreign exchange forward contracts with a notional value of €600 million. The contracts are not designated as accounting hedges under Topic 815 of ASC, and as such, the gains and losses are recorded as a component of Other income (expense), net. For the three months ended March 31, 2026, these contracts resulted in a net gain of $2 million.