The Company uses derivative and non-derivative instruments to manage foreign exchange risk related to its ongoing business operations with the primary objective of reducing earnings and cash flow volatility associated with fluctuations in foreign exchange rates.


	As of
	March 31, 2025		December 31, 2024
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange contracts
Cash flow hedges	$	18,207,861	$	18,508,390
Fair value hedges	3,830,227		3,819,817
Derivatives not designated as hedging instruments:
Foreign exchange contracts	1,493,593		1,432,136
Total	$	23,531,681	$	23,760,343

As of March 31, 2025 and December 31, 2024, approximately $1.1 billion and $1.0 billion, respectively, of the Company’s euro–denominated Senior Notes were designated as hedges of the foreign exchange risk of the Company’s net investment in certain foreign subsidiaries.

As of March 31, 2025 and December 31, 2024, the carrying amount of the Company's euro-denominated Senior Notes (included in "Long-term debt" on the Company's Consolidated Balance Sheets), which were designated as the hedged items in fair value hedges, was approximately $3.7 billion and $3.6 billion, respectively.


	As of March 31, 2025
	Derivative Assets				Derivative Liabilities
	Other current assets		Other non-current assets		Accrued expenses and other liabilities		Other non-current liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	286,746	$	153,540	$	183,101	$	54,518
Derivatives not designated as hedging instruments:
Foreign exchange contracts	6,060		—		10,408		—
Total	$	292,806	$	153,540	$	193,509	$	54,518


	As of December 31, 2024
	Derivative Assets				Derivative Liabilities
	Other current assets		Other non-current assets		Accrued expenses and other liabilities		Other non-current liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	580,065	$	406,677	$	303,425	$	83
Derivatives not designated as hedging instruments:
Foreign exchange contracts	16,211		—		14,492		—
Total	$	596,276	$	406,677	$	317,917	$	83

The Company classifies derivative instruments in the Level 2 category within the fair value hierarchy. These instruments are valued using industry standard valuation models that use observable inputs such as interest rate yield curves, and forward and spot prices for currencies.

As of March 31, 2025, the pre-tax net accumulated gain on our foreign currency cash flow hedges included in AOCI on the Consolidated Balance Sheets expected to be recognized in earnings within the next 12 months is $186 million.

In order to mitigate counterparty credit risk, the Company enters into master netting agreements with its counterparties for its foreign currency exchange contracts which permit the parties to settle amounts on a net basis under certain conditions. The Company has elected to present its derivative assets and liabilities on a gross basis on its Consolidated Balance Sheets.

The Company also enters into collateral security arrangements with its counterparties that require the parties to post cash collateral when certain contractual thresholds are met. Cash collateral received is presented in “Accrued expenses and other liabilities” representing the Company’s obligation to return counterparty cash collateral. Cash collateral posted is presented in “Other current assets,” representing the Company’s right to reclaim the cash collateral. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted or received.

The potential offsetting effect to the Company’s derivative assets and liabilities under its master netting agreements and collateral security agreements were as follows:


	As of March 31, 2025
							Gross Amount Not Offset in the Consolidated Balance Sheets
	Gross Amount Recognized in the Consolidated Balance Sheets		Gross Amount Offset in the Consolidated Balance Sheets		Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments		Collateral Received and Posted		Net Amount
	(in thousands)
Derivative assets	$	446,346	$	—	$	446,346	$	(230,087)	$	—	$	216,259
Derivative liabilities	248,027		—		248,027		(230,087)		—		17,940


	As of December 31, 2024
							Gross Amount Not Offset in the Consolidated Balance Sheets
	Gross Amount Recognized in the Consolidated Balance Sheets		Gross Amount Offset in the Consolidated Balance Sheets		Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments		Collateral Received and Posted		Net Amount
	(in thousands)
Derivative assets	$	1,002,953	$	—	$	1,002,953	$	(316,320)	$	(1,800)	$	684,833
Derivative liabilities	318,000		—		318,000		(316,320)		—		1,680


	Three Months Ended
	March 31, 2025		March 31, 2024
	(in thousands)
Cash flow hedges:
Foreign exchange contracts
Amount included in the assessment of effectiveness	$	(486,967)	$	229,144
Fair value hedges:
Foreign exchange contracts
Amount excluded from the assessment of effectiveness	(18,031)		—
Net investment hedges:
Foreign currency-denominated debt
Amount included in the assessment of effectiveness	(44,600)		—
Total	$	(549,598)	$	229,144


	Three Months Ended
	March 31, 2025
	Revenues		Cost of Revenues		Interest and other income (expense)
	(in thousands)
Total amounts presented in the Consolidated Statements of Operations	$	10,542,801	$	5,263,147	$	50,899

Gains (losses) on derivatives in cash flow hedging relationship
Foreign exchange contracts
Amount of gains (losses) reclassified from AOCI	164,796		(2,339)		—
Gains (losses) on derivatives in fair value hedging relationship
Foreign exchange contracts
Hedged items	—		—		(153,825)
Derivatives designated as hedging instruments	—		—		157,435
Amount excluded from assessment of effectiveness and recognized in earnings based on amortization approach	—		—		(14,569)
Losses on derivatives not designated as hedging instruments
Foreign exchange contracts	—		—		(20,950)


	Three Months Ended
	March 31, 2024
	Revenues		Cost of Revenues		Interest and other income (expense)
	(in thousands)
Total amounts presented in the Consolidated Statements of Operations	$	9,370,440	$	4,977,073	$	155,359

Gains (losses) on derivatives in cash flow hedging relationship
Foreign exchange contracts
Amount of gains (losses) reclassified from AOCI	(11,241)		194		—
Gains (losses) on derivatives in fair value hedging relationship
Foreign exchange contracts
Hedged items	—		—		—
Derivatives designated as hedging instruments	—		—		—
Amount excluded from assessment of effectiveness and recognized in earnings based on amortization approach	—		—		—
Gains on derivatives not designated as hedging instruments
Foreign exchange contracts	—		—		4,266