Fair Value Measurements
The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheet at December 31:
Total Carrying
Value in the
Consolidated
Balance Sheet
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(In millions)20252024202520242025202420252024
Assets:
Investments$13 $16 $13 $16 $— $— $— $— 
Foreign Exchange Contracts28 — — 28 — — 
Total Assets at Fair Value$19 $44 $13 $16 $6 $28 $ $ 
Liabilities:
Foreign Exchange Contracts$30 $$— $— $30 $$— $— 
Total Liabilities at Fair Value$30 $3 $ $ $30 $3 $ $ 
The following table presents information about long term fixed rate and variable rate debt, excluding finance leases, at December 31:
(In millions)December 31,
2025
December 31,
2024
Fixed Rate Debt(1):
Carrying amount — liability$4,496 $5,367 
Fair value — liability4,422 5,076 
Variable Rate Debt(1):
Carrying amount — liability$935 $1,600 
Fair value — liability935 1,590 
(1)Excludes Notes Payable and Overdrafts of $506 million and $558 million at December 31, 2025 and 2024, respectively, of which $216 million and $241 million, respectively, are at fixed rates and $290 million and $317 million, respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities.
Long term debt with fair values of $4,291 million and $4,921 million at December 31, 2025 and 2024, respectively, were estimated using quoted Level 1 market prices. The carrying value of the remaining debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions.

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 14, 2025
2023Feb 13, 2024
2022Feb 13, 2023
2021Feb 14, 2022
2020Feb 9, 2021
2019Feb 11, 2020
2018Feb 8, 2019
2017Feb 8, 2018
2016Feb 8, 2017
2015Feb 9, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.