Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2025

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of December 31, 2025:


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	203	$	—	$	—	$	203
Derivatives	—		—		—		—
Total	$	203	$	—	$	—	$	203
Liabilities:
Derivatives	$	—	$	367	$	—	$	367
Contingent consideration	—		—		105		105
Total	$	—	$	367	$	105	$	472

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of December 31, 2024:


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	170	$	—	$	—	$	170
Derivatives	—		39		—		39
Total	$	170	$	39	$	—	$	209
Liabilities:
Derivatives	$	—	$	7	$	—	$	7
Contingent consideration	—		—		102		102
Total	$	—	$	7	$	102	$	109

Changes in Level 3 Financial Assets and Liabilities Measured on Recurring Basis

The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the year ended December 31:


	Contingent Consideration
(in millions)	2025		2024		2023
Balance as of January 1	$	102	$	106	$	173
Business combinations	59		77		64
Contingent consideration paid	(22)		(10)		(73)
Revaluations included in earnings and foreign currency translation adjustments	(34)		(71)		(58)
Balance as of December 31	$	105	$	102	$	106

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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