XML 21 R14.htm IDEA: XBRL DOCUMENT
v3.25.3

Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 3. FAIR VALU E MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis The carrying value of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and other current financial assets and liabilities approximate their fair value because of the short-term maturity of these instruments. The Company uses derivative financial instruments (“derivatives”) as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest rates and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. For certain derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although each hedge is entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest rates and foreign exchange rates. The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value. All the Company’s derivatives are classified as Level 2 financial instruments in the fair value hierarchy. Level 2 pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (“ISDA agreements”) with all of its derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 have been presented on a gross basis. According to the ISDA agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company chose not to offset are presented below. Derivatives designated as hedging instruments There were no derivatives designated as hedging instruments as of September 30, 2025 or December 31, 2024 related to the Company's operations. Derivatives not designated as hedging instruments Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives no t designated as hedging instruments outstanding as of September 30, 2025 and December 31, 2024 were foreign exchange swaps. For the three months periods ended September 30, 2025 and 2024, the gains or losses recognized in other non-operating items, net were a loss of $32 million and a loss of $1 million, respectively, for derivative instruments not designated as hedging instruments. For the nine months periods ended September 30, 2025 and 2024, the gains or losses recognized in other non-operating items, net were a gain of $54 million and a loss of $11 million, respectively. The realized part of the gains or losses referred to above is reported under financing activities in the statement of cash flows. For the three months periods ended September 30, 2025 and 2024, the gains or losses recognized as interest expense were immaterial and a gain of $4 million, respectively. For the nine months periods ended September 30, 2025 and 2024, the gains or losses recognized as interest expense were a loss of $5 million and a loss of $1 million, respectively. The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).
|  | As of |  |
|  | September 30, 2025 |  |  |  | December 31, 2024 |  |
|  |  |  |  | Fair Value Measurements |  |  |  |  |  |  | Fair Value Measurements |  |
Description |  | Nominal volume |  |  | Derivative asset (Other current assets) |  |  | Derivative liability (Other current liabilities) |  |  |  | Nominal volume |  |  | Derivative asset (Other current assets) |  |  | Derivative liability (Other current liabilities) |  |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange swaps, less than 6 months |  | $ | 3,366 |  | 1) | $ | 41 |  | 2) | $ | 6 |  | 3) |  | $ | 2,916 |  | 4) | $ | 22 |  | 5) | $ | 42 |  | 6)
Total derivatives not designated as hedging instruments |  | $ | 3,366 |  |  | $ | 41 |  |  | $ | 6 |  |  |  | $ | 2,916 |  |  | $ | 22 |  |  | $ | 42 |  |
1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $3,366 million. 2) Net amount after deducting for offsetting swaps under ISDA agreements is $41 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $6 million. 4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,916 million. 5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million. 6) Net amount after deducting for offsetting swaps under ISDA agreements is $42 million. Fair Value of Debt The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy. The fair value and carrying value of debt is summarized in the table below (dollars in millions).
|  | As of |
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | Carrying value 1) |  |  | Fair value |  |  | Carrying value 1) |  |  | Fair value |
Long-term debt |  |  |  |  |  |  |  |  |  |  |  |
Bonds |  | $ | 1,360 |  |  | $ | 1,389 |  |  | $ | 1,512 |  |  | $ | 1,527 |
Loans |  |  | 14 |  |  |  | 14 |  |  |  | 10 |  |  |  | 10 |
Total long-term debt |  |  | 1,374 |  |  |  | 1,403 |  |  |  | 1,522 |  |  |  | 1,537 |
Short-term debt |  |  |  |  |  |  |  |  |  |  |  |
Short-term portion of long-term debt |  |  | 285 |  |  |  | 289 |  |  |  | 273 |  |  |  | 275 |
Overdrafts and other short-term debt |  |  | 369 |  |  |  | 369 |  |  |  | 114 |  |  |  | 114 |
Total short-term debt |  | $ | 654 |  |  | $ | 658 |  |  | $ | 387 |  |  | $ | 389 |
1) Debt as reported in balance sheet. Assets and liabilities measured at fair value on a non-recurring basis In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis, including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment. The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets. For the nine months period ended September 30, 2025, the Company did no t record any material impairment charges on its long-lived assets for its operations.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration