Fair Value Measurements

6 Months Ended

Jun. 28, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair Value Measurements

The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis:

	June 28,		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
(In millions)	2025		(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	1,431	$	1,431	$	—	$	—
Bank time deposits	1,810		1,810		—		—
Investments	76		17		—		59
Insurance contracts	262		—		262		—
Derivative contracts	175		—		175		—
Total assets	$	3,755	$	3,258	$	437	$	59
Liabilities
Derivative contracts	$	409	$	—	$	409	$	—
Contingent consideration	5		—		—		5
Total liabilities	$	415	$	—	$	409	$	5

	December 31,		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
(In millions)	2024		(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	1,103	$	1,103	$	—	$	—
Bank time deposits	1,560		1,560		—		—
Investments	39		18		—		21
Insurance contracts	240		—		240		—
Derivative contracts	460		—		460		—
Total assets	$	3,401	$	2,680	$	700	$	21
Liabilities
Derivative contracts	$	59	$	—	$	59	$	—
Contingent consideration	13		—		—		13
Total liabilities	$	72	$	—	$	59	$	13

In the three- and six-month periods ended June 28, 2025, the company recorded $(3) million and $(2) million, respectively, of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income. In the six-month period ended June 29, 2024, the company recorded $10 million, of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income.

The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of achieving production or revenue milestones, as well as changes in the fair values of the investments underlying a recapitalization investment portfolio), of the contingent consideration.

	Three months ended				Six months ended
	June 28,		June 29,		June 28,		June 29,
(In millions)	2025		2024		2025		2024
Contingent consideration
Beginning balance	$	13	$	83	$	13	$	87
Payments	(6)		—		(6)		(2)
Changes in fair value included in earnings	(2)		(72)		(1)		(74)
Ending balance	$	5	$	12	$	5	$	12

The following table provides a rollforward of investments classified as level 3:

	Three months ended		Six months ended
	June 28,		June 28,
(In millions)	2025		2025
Investments
Beginning balance	$	31	$	21
Purchases	28		38
Ending balance	$	59	$	59

Fair Value of Other Financial Instruments

The carrying value and fair value of the company’s debt instruments are as follows:

	June 28, 2025				December 31, 2024
	Carrying		Fair		Carrying		Fair
(In millions)	value		value		value		value
Senior notes	$	35,031	$	32,400	$	30,999	$	28,454
Other	1		1		73		73
	$	35,033	$	32,402	$	31,072	$	28,527

The fair value of debt instruments, excluding private placement notes, was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends, which represent level 2 measurements. The fair value of private placement notes was determined based on internally developed pricing models and unobservable inputs, which represent level 3 measurements.