XML 62 R45.htm IDEA: XBRL DOCUMENT v3.25.4
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional Amounts of Outstanding Derivative Positions
As of December 31, 2025 and 2024, the notional amounts of our outstanding derivative positions were as follows (in millions):
 20252024
Currency hedges:
EuroEUR2,764 3,222 
British Pound SterlingGBP410 536 
Canadian DollarCAD1,574 1,623 
Hong Kong DollarHKD4,317 4,160 
Chinese RenminbiCNH6,743 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, 2025 and 2024 (in millions):
Fair Value Hierarchy LevelGross Amounts Presented in Consolidated Balance SheetsNet Amounts if Right of Offset had been Applied
Asset DerivativesBalance Sheet
Location		2025202420252024
Derivatives designated as hedges:
Foreign currency exchange contractsOther current assetsLevel 2$5 $157 $— $152 
Foreign currency exchange contractsOther non-current assetsLevel 24 134 — 131 
Total Asset Derivatives$9 $291 $— $283 
Fair Value Hierarchy LevelGross Amounts Presented in Consolidated Balance SheetsNet Amounts if Right of Offset had been Applied
Liability DerivativesBalance Sheet
Location		2025202420252024
Derivatives designated as hedges:
Foreign currency exchange contractsOther current liabilitiesLevel 2$83 $5 $78 $— 
Foreign currency exchange contractsOther non-current liabilitiesLevel 291 3 87 — 
Total Liability Derivatives$174 $8 $165 $— 
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, 2025 and 2024 (in millions):
20252024
Line Item in our Consolidated Balance Sheets in Which the Hedged Item is Included
Carrying Amount of Hedged LiabilitiesCumulative Amount of Fair Value Hedge AdjustmentsCarrying Amount of Hedged LiabilitiesCumulative Amount of Fair Value Hedge Adjustments
Long-term debt and finance leases
$279 $3 $279 $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 our 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 during 2025 and 2024 (in millions):

2025
2024
Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging RelationshipsRevenueInterest Expense
Investment Income (Expense) and Other
RevenueInterest 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— (6)— — (5)— 
Foreign Currency Exchange Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income26 — (1)176 — (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$26 $(6)$(1)$176 $(5)$(1)
Schedule of Derivative Instruments
The following table indicates the amount of gains and (losses) that have been recognized in AOCI during 2025 and 2024 for those derivatives designated as cash flow hedges (in millions):
Derivative Instruments in Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Derivatives
20252024
Foreign currency exchange contracts(434)389 
Total$(434)$389 
The following table indicates the amount of gains and (losses) that have been recognized in AOCI within foreign currency translation adjustment during 2025 and 2024 for those instruments designated as net investment hedges (in millions):
Non-derivative Instruments in Net Investment Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Debt
20252024
Foreign denominated debt$(254)$127 
Total$(254)$127 
Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges
Amounts recorded in our statements of consolidated income related to foreign currency forward contracts not designated as hedges during 2025 and 2024 (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
20252024
Foreign currency exchange contracts
Investment income (expense) and other
$(6)$(1)
Total$(6)$(1)