DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Outstanding Derivative Positions

As of December 31, 2024 and 2023, the notional amounts of our outstanding derivative positions were as follows (in millions):

		2024	2023
Currency hedges:
Euro	EUR	3,222	4,408
British Pound Sterling	GBP	536	663
Canadian Dollar	CAD	1,623	1,550
Hong Kong Dollar	HKD	4,160	1,822
Chinese Renminbi	CNH	6,065	—

Balance sheet location of derivative assets and liabilities and their related fair values

The following table indicates the location in our consolidated balance sheets where our derivative assets and liabilities have been recognized, the fair value hierarchy level applicable to each derivative type and the related fair values of those derivatives.

We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded in our consolidated balance sheets. The columns labeled Net Amounts if Right of Offset had been Applied indicate the potential net fair value positions by type of contract and location in our consolidated balance sheets had we elected to apply the right of offset as of December 31, 2024 and 2023 (in millions):

		Fair Value Hierarchy Level	Gross Amounts Presented in Consolidated Balance Sheets				Net Amounts if Right of Offset had been Applied
Asset Derivatives	Balance Sheet Location		2024		2023		2024		2023
Derivatives designated as hedges:
Foreign currency exchange contracts	Other current assets	Level 2	$	157	$	95	$	152	$	73
Foreign currency exchange contracts	Other non-current assets	Level 2	134		63		131		19
Derivatives not designated as hedges:
Foreign currency exchange contracts	Other current assets	Level 2	—		—		—		—
Total Asset Derivatives			$	291	$	158	$	283	$	92

		Fair Value Hierarchy Level	Gross Amounts Presented in Consolidated Balance Sheets				Net Amounts if Right of Offset had been Applied
Liability Derivatives	Balance Sheet Location		2024		2023		2024		2023
Derivatives designated as hedges:
Foreign currency exchange contracts	Other current liabilities	Level 2	$	5	$	26	$	—	$	4
Foreign currency exchange contracts	Other non-current liabilities	Level 2	3		65		—		21
Derivatives not designated as hedges:
Foreign currency exchange contracts	Other current liabilities	Level 2	—		1		—		1
Total Liability Derivatives			$	8	$	92	$	—	$	26

The following table indicates the amounts that were recorded in our consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of December 31, 2024 and 2023 (in millions):

	2024				2023
Line Item in our Consolidated Balance Sheets in Which the Hedged Item is Included	Carrying Amount of Hedged Liabilities		Cumulative Amount of Fair Value Hedge Adjustments		Carrying Amount of Hedged Liabilities		Cumulative Amount of Fair Value Hedge Adjustments
Long-term debt and finance leases	$	279	$	4	$	280	$	4

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position

The following table indicates the amount of gains and (losses) that have been recognized in the statements of consolidated income for fair value and cash flow hedges, as well as the associated gain or (loss) for the underlying hedged item for fair value hedges for the years ended December 31, 2024 and 2023 (in millions):

	2024						2023
Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships	Revenue		Interest Expense		Investment Income (Expense) and Other		Revenue		Interest Expense		Investment Income (Expense) and Other
Gain or (loss) on cash flow hedging relationships:
Interest Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income	—		(5)		—		—		(10)		—
Foreign Currency Exchange Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income	176		—		(1)		213		—		(1)
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded	$	176	$	(5)	$	(1)	$	213	$	(10)	$	(1)

Schedule of Derivative Instruments

The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the years ended December 31, 2024 and 2023 for those derivatives designated as cash flow hedges (in millions):

Derivative Instruments in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives
	2024		2023
Interest rate contracts	$	—	$	(1)
Foreign currency exchange contracts	389		(116)
Total	$	389	$	(117)

The following table indicates the amount of gains and (losses) that have been recognized in AOCI within foreign currency translation adjustment for the years ended December 31, 2024 and 2023 for those instruments designated as net investment hedges (in millions):

Non-derivative Instruments in Net Investment Hedging Relationships	Amount of Gain (Loss) Recognized in AOCI on Debt
	2024		2023
Foreign denominated debt	$	127	$	(119)
Total	$	127	$	(119)

Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges

Amounts recorded in the statements of consolidated income related to fair value changes and settlements of interest rate swaps and foreign currency forward contracts not designated as hedges for the years ended December 31, 2024 and 2023 (in millions) were as follows:

Derivative Instruments Not Designated in Hedging Relationships	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income
		2024		2023
Foreign currency exchange contracts	Investment income (expense) and other	$	(1)	$	(7)
Total		$	(1)	$	(7)