DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2026

The following table summarizes the classification and fair values of derivative instruments, including the potential effect of offsetting:


	March 31, 2026
(in millions)	Prepaid and other current assets		Other long-term assets		Total Derivative Assets		Other current liabilities		Other long-term liabilities		Total Derivative Liabilities
Foreign currency exchange contracts designated as hedges	$	45	$	7	$	52	$	28	$	1	$	29
Foreign currency exchange contracts not designated as hedges	21		—		21		1		—		1
Total derivatives presented gross on the Condensed Consolidated Balance Sheets					$	73					$	30
Total derivatives not offset on the Condensed Consolidated Balance Sheets					(24)						(24)
Net amount (legal offset)					$	49					$	6


	December 31, 2025
(in millions)	Prepaid and other current assets		Other long-term assets		Total Derivative Assets		Other current liabilities		Other long-term liabilities		Total Derivative Liabilities
Foreign currency exchange contracts designated as hedges	$	18	$	2	$	20	$	62	$	3	$	65
Foreign currency exchange contracts not designated as hedges	36		—		36		7		—		7
Total derivatives presented gross on the Condensed Consolidated Balance Sheets					$	56					$	72
Total derivatives not offset on the Condensed Consolidated Balance Sheets					(40)						(40)
Net amount (legal offset)					$	16					$	32

The following table summarizes the effect of our derivative contracts on our Condensed Consolidated Financial Statements:


	Three Months Ended
	March 31,
(in millions)	2026		2025
Derivatives designated as hedges:
Net gain (loss) recognized in Accumulated other comprehensive income	$	45	$	(45)
Net (loss) gain reclassified from Accumulated other comprehensive income into Product sales	$	(24)	$	21
Derivatives not designated as hedges:
Net gain (loss) recognized in Other (income) expense, net	$	3	$	(5)