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Risk Management | 9 Months Ended
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Sep. 27, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Risk Management | Risk Management Foreign Currency Risk The Company had outstanding foreign exchange contracts with notional amounts totaling $1.3 billion and $1.0 billion for the periods ended September 27, 2025 and December 31, 2024, respectively. The Company does not believe these financial instruments should subject it to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset gains and losses on the underlying assets, liabilities and transactions. The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of September 27, 2025, and the corresponding positions as of December 31, 2024:
| Notional Amount
Net Buy (Sell) by Currency | September 27, 2025 |  | December 31, 2024
Euro | $ | 190 |  |  | $ | 150 |
British Pound | 179 |  |  | 124 |
Australian dollar | (147) |  |  | (136) |
Canadian dollar | 68 |  |  | 70 |
Brazilian Real | (50) |  |  | (23) |
Counterparty Risk The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of non-performance by counterparties. However, the Company’s risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. As of September 27, 2025, all of the counterparties had investment grade credit ratings. As of September 27, 2025, the Company had $1 million of exposure to aggregate credit risk with all counterparties. Derivative Financial Instruments The following tables summarize the fair values and locations in the Condensed Consolidated Balance Sheets of all derivative financial instruments held by the Company as of September 27, 2025 and December 31, 2024:
| Fair Values of Derivative Instruments
September 27, 2025 | Other Current Assets |  | Accrued Liabilities
Derivatives designated as hedging instruments: |  |  |
Foreign exchange contracts | $ | — |  |  | $ | 20 |
Derivatives not designated as hedging instruments: |  |  |
Foreign exchange contracts | $ | — |  |  | $ | 3 |
Equity swap contracts | 1 |  |  | — |
Total derivatives | $ | 1 |  |  | $ | 23 |
| Fair Values of Derivative Instruments
December 31, 2024 | Other Current Assets |  | Accrued Liabilities
Derivatives designated as hedging instruments: |  |  |
Foreign exchange contracts | $ | 7 |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |
Foreign exchange contracts | $ | 3 |  |  | $ | 9 |
Equity swap contracts | — |  |  | 1 |
Total derivatives | $ | 10 |  |  | $ | 10 |
The following table summarizes the effect of derivatives on the Company's condensed consolidated financial statements for the three and nine months ended September 27, 2025 and September 28, 2024:
| Financial Statement Location | Three Months Ended |  | Nine Months Ended
Derivatives | September 27, 2025 |  | September 28, 2024 |  | September 27, 2025 |  | September 28, 2024
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign exchange contracts | Accumulated other comprehensive income (loss) | $ | (1) |  |  | $ | (9) |  |  | $ | (24) |  |  | $ | 3 |
Amortized hedge income | Other income (expense) | 2 |  |  | — |  |  | 4 |  |  | 1 |
Treasury rate lock | Accumulated other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | 4 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign exchange contracts | Other income (expense) | $ | (6) |  |  | $ | 22 |  |  | $ | 41 |  |  | $ | 7 |
Equity swap contracts | Selling, general and administrative expenses | 2 |  |  | 1 |  |  | 1 |  |  | 3 |
Net Investment Hedges The Company uses foreign exchange forward and option contracts to hedge against the effect of the British pound and the Euro exchange rate fluctuations against the U.S. dollar on a portion of its net investments in certain European operations. The Company recognizes changes in the fair value of the net investment hedges as a component of Foreign currency translation adjustments within Other comprehensive income to offset a portion of the change in translated value of the net investments being hedged, until the investments are sold or liquidated. As of September 27, 2025, the Company had €160 million of net investment hedges in certain Euro functional subsidiaries and £50 million of net investment hedges in a British pound functional subsidiary. The Company excludes the difference between the spot rate and the forward rate of the forward contracts and initial time value of the options from its assessment of hedge effectiveness. The effect of the forward points recognized in forward contracts and the initial time value of the option contracts are amortized on a straight-line basis and recognized through interest expense within Other income (expense) in the Condensed Consolidated Statement of Operations. Equity Swap Contracts The Company uses equity swap contracts which serve as economic hedges against volatility within the equity markets, impacting the Company's deferred compensation plan obligations. These contracts are not designated as hedges for accounting purposes. Unrealized gains and losses on these contracts are included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The notional amount of these contracts as of September 27, 2025 was $21 million. Treasury Rate Lock In 2023, the Company entered into treasury rate agreements which locked in the interest rate for $200 million in future debt issuances. The treasury rate lock agreements were designated and qualified as cash flow hedges. During the nine months ended September 28, 2024, the Company issued $900 million of 5.4% senior notes due 2034 (the "2034 notes"). The treasury rate lock agreements were terminated upon the issuance of the 2034 notes for a net settlement loss of $8 million. The accumulated loss recorded in Accumulated other comprehensive income (loss) will be reclassified to interest expense on a straight-line basis over the ten year term of the 2034 notes.

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