Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent

•Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company determines the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the Term SOFR swap curve and forward interest and exchange rates at period end. Such instruments are classified as Level 2 based on the observability of significant inputs to the model. The Company does not have any instruments classified as Level 3, other than those included in pension asset trusts included in Note 8. These valuations take into consideration the Company’s credit risk and its counterparties’ credit risk.


	2024				2023
(DOLLARS IN MILLIONS)	Carrying Value		Fair Value		Carrying Value		Fair Value
LEVEL 1
Cash and cash equivalents(1)	$	469	$	469	$	709	$	709
LEVEL 2
Bank overdrafts and other(2)	2		2		3		3
Derivatives
Derivative assets(3)	9		9		41		41
Derivative liabilities(3)	129		129		165		165

Long-term debt:


2024 Euro Notes(4)	—		—		552		549
2025 Notes(4)	1,000		972		1,000		924
2026 Euro Notes(4)	827		813		879		835
2027 Notes(4)	1,209		1,102		1,212		1,049
2028 Notes(4)	398		391		398		389
2030 Notes(4)	1,507		1,274		1,508		1,240
2040 Notes(4)	771		536		773		536
2047 Notes(4)	495		392		495		382
2048 Notes(4)	787		686		787		678
2050 Notes(4)	1,568		985		1,569		1,029
2024 Term Loan Facility(5)	—		—		270		270
2026 Term Loan Facility(5)	413		413		625		625

(2)The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.

(4)The fair value of the Note is obtained from pricing services engaged by the Company, and the Company receives one price for each security. The fair value provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. The inputs to the valuation techniques applied by the pricing services are typically benchmark yields, benchmark security prices, credit spreads, reported trades and broker-dealer quotes, all with reasonable levels of transparency.

(5)The carrying amount approximates fair value as the Term Loans were assumed at fair value and the interest rate is reset frequently based on current market rates.

The Company periodically enters into foreign currency forward contracts with the objective of managing our exchange rate risk related to foreign currency denominated monetary assets and liabilities of our operations. These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions.

The Company utilizes options that are not designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of inventory such as soybeans.

The Company also uses swaps that are designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of natural gas used in our manufacturing process.

Subsequent to the issuance of the 2026 Euro Notes during the third quarter of 2018, the Company designated the debt as a hedge of a portion of its net European investments. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in OCI as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Loss.

Subsequent to the issuance of the 2024 Euro Notes during the first quarter of 2016, the Company designated the debt as a hedge of a portion of its net European investments. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in OCI as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Loss.

During the first quarter of 2016, the Company entered into and settled two Euro interest rate swap agreements to hedge the anticipated issuance of fixed-rate debt. These swaps were designated as cash flow hedges. The effective portions of cash flow hedges are recorded in OCI as a component of Losses on derivatives qualifying as hedges in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Loss. The Company incurred a loss of €3 million ($3 million) due to the termination of these swaps. The loss was amortized as interest expense over the life of the 2024 Euro Notes as discussed in Note 14.

During the fourth quarter of 2016 and the first quarter of 2017, the Company entered into interest rate swap agreements to hedge the anticipated issuance of fixed-rate debt, which are designated as cash flow hedges. The various hedge instruments were settled upon issuance of the debt on May 18, 2017 and resulted in a loss of approximately $5 million. As discussed in Note 14, the loss is being amortized as interest expense over the life of the 2047 Notes.

During the third quarter of 2022, the Company entered into a transaction to unwind the fourteen outstanding EUR/USD cross currency swaps designated as net investment hedges issued between the third quarter of 2019 and the first quarter of 2022. The Company received proceeds of approximately $173 million. The gain arising from the termination of the swaps has been included as a component of Accumulated other comprehensive loss.

The Company has twelve EUR/USD cross currency swaps, with a notional value of $1.400 billion that mature through November 2030. The swaps all qualified as net investment hedges in order to mitigate a portion of the Company’s net European investments from foreign currency risk. As of December 31, 2024, the twelve remaining swaps were in a liability position with an aggregate fair value of $90 million which were classified as Other liabilities on the Consolidated Balance Sheets. Changes in fair value related to cross currency swaps are recorded in OCI.


	December 31,
(DOLLARS IN MILLIONS)	2024		2023
Foreign currency forward contracts(1)	$	(1,512)	$	(1,400)
Commodity contracts(1)	7		7
Cross currency swaps	1,400		1,400

______________________

The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy) as reflected in the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023:


	December 31, 2024
(DOLLARS IN MILLIONS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets(1)
Foreign currency forward contracts	$	—	$	8	$	8


Commodity contracts	1		—		1
Total derivative assets	$	1	$	8	$	9
Derivative liabilities(2)
Foreign currency forward contracts	$	—	$	39	$	39
Cross currency swaps	90		—		90
Total derivative liabilities	$	90	$	39	$	129


	December 31, 2023
(DOLLARS IN MILLIONS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets(1)
Foreign currency forward contracts	$	—	$	41	$	41


Derivative liabilities(2)
Foreign currency forward contracts	$	—	$	4	$	4
Cross currency swaps	161		—		161
Total derivative liabilities	$	161	$	4	$	165

The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statements of Income (Loss) and Comprehensive Loss for the years ended December 31, 2024 and 2023:


(DOLLARS IN MILLIONS)	Amount of Gain or (Loss) Recognized in Income on Derivative Settlements December 31,						Amount of Gain (Loss) Recognized in Income on Changes in Fair Value December 31,						Location of Gain (Loss) Recognized in Income on Derivative
	2024		2023		2022		2024		2023		2022
Foreign currency forward contracts(1)	$	(102)	$	(16)	$	3	$	(68)	$	37	$	—	Other expense (income), net



Commodity contracts	(1)		2		—		—		—		—		Cost of sales
Total	$	(103)	$	(14)	3		$	(68)	$	37	$	—

(1)The foreign currency forward contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods.

The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statements of Income (Loss) and Comprehensive Loss for the years ended December 31, 2024 and 2023:


	Amount of Gain (Loss) Recognized in OCI on Derivative and Non-Derivative (Effective Portion)						Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	For the years ended December 31,
(DOLLARS IN MILLIONS)	2024		2023		2022
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts	$	(7)	$	—	$	—	N/A

Commodity contracts	3		—		—		Cost of sales
Derivatives in Net Investment Hedging Relationships:

Cross currency swaps	$	55	$	(67)	$	(16)	N/A
Non-Derivatives in Net Investment Hedging Relationships:
2024 Euro Notes	3		(16)		27		N/A
2026 Euro Notes	42		(26)		43		N/A
Total	$	96	$	(109)	$	54


	Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	For the year ended December 31,
(DOLLARS IN MILLIONS)	2024		2023		2022
Derivatives in Cash Flow Hedging Relationships:


Commodity contracts	$	(1)	$	—	$	—






Total	$	(1)	$	—	$	—

The ineffective portion of the above noted net investment hedges was approximately $15 million, $15 million, and $10 million for the years ended December 31, 2024, 2023, and 2022 respectively, and was recorded as a reduction to interest expense on the Consolidated Statements of Income (Loss) and Comprehensive Loss.

At December 31, 2024, based on current market rates, the Company does not expect any derivative losses (net of tax), included in AOCI, to be reclassified into earnings within the next 12 months.