Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Amounts related to cumulative basis adjustments for fair value hedges

At September 30, 2026 and December 31, 2025, the following amounts were recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

($ in millions)	September 30, 2026		December 31, 2025
Short-term debt:
Carrying amount of the hedged item	$	(1,226)	$	—
Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)	(2)		—
Long-term debt:
Carrying amount of the hedged item	(5,261)		(6,656)
Cumulative hedging adjustments included in the carrying amount — assets/(liabilities) (1)	211		36

(1)Includes $(93) million and $(114) million of hedging adjustments on discontinued hedging relationships at September 30, 2026 and December 31, 2025, respectively.

Effect of derivative instruments in the Consolidated Income Statement

The total effect of fair value hedges, cash flow hedges, net investment hedges and derivatives not designated as hedging instruments are summarized by income and expense line items as follows:

	(Gains)/Losses of Total Hedge Activity
	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2026		2025		2026		2025
Cost of services	$	20	$	7	$	57	$	12
Cost of sales	(10)		0		(19)		(2)
Cost of financing	0		(1)		(2)		(2)
SG&A expense	37		(74)		(60)		(157)
Other (income) and expense	21		162		560		(881)
Interest expense	(1)		(4)		(9)		(9)

	(Gains)/Losses Recognized in Consolidated Income Statement
($ in millions)	Consolidated Income Statement Line Item	Recognized on Derivatives				Attributable to Risk Being Hedged (1)
For the three months ended September 30:		2026		2025		2026		2025
Derivative instruments in fair value hedges: (2)
Interest rate contracts	Cost of financing	$	22	$	(1)	$	(20)	$	4
	Interest expense	103		(6)		(94)		22
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	Other (income) and expense	28		83		N/A		N/A
Equity contracts	SG&A expense	42		(75)		N/A		N/A
Total		$	194	$	0	$	(114)	$	27

	Effects of Derivatives Recognized in Consolidated Income Statement and OCI
						(Gains)/Losses
($ in millions)	Gains/(Losses) Recognized in OCI				Consolidated Income Statement Line Item	Reclassified from AOCI				Amounts Excluded from Effectiveness Testing (3)
For the three months ended September 30:	2026		2025			2026		2025		2026		2025
Derivative instruments in cash flow hedges:
Interest rate contracts	$	—	$	—	Cost of financing	$	0	$	1	N/A		N/A
					Interest expense	2		3		N/A		N/A
Foreign exchange contracts
Amount included in the assessment of effectiveness	(42)		70		Cost of services	20		7		N/A		N/A
					Cost of sales	(10)		0		N/A		N/A
					Cost of financing	1		1		N/A		N/A
					SG&A expense	(4)		1		N/A		N/A
					Other (income) and expense	(44)		51		N/A		N/A
					Interest expense	3		3		N/A		N/A
Amount excluded from the assessment of effectiveness	(24)		(50)		Other (income) and expense	N/A		N/A		37		28
Instruments in net investment hedges: (4)
Foreign exchange contracts
Amount included in the assessment of effectiveness	83		154
Amount excluded from the assessment of effectiveness	(6)		6		Cost of financing	N/A		N/A		(3)		(5)
					Interest expense	N/A		N/A		(15)		(26)
Total	$	11	$	179		$	(32)	$	66	$	19	$	(4)

(1)The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period.

(2)The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts.

(3)Amounts excluded from effectiveness testing for both net investment hedges and cash flow hedges of foreign currency debt are amortized to net income on a straight line basis over the life of the relevant hedging instrument.

(4)Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries.

N/A - not applicable

	(Gains)/Losses Recognized in Consolidated Income Statement
($ in millions)	Consolidated Income Statement Line Item	Recognized on Derivatives				Attributable to Risk Being Hedged (1)
For the nine months ended September 30:		2026		2025		2026		2025
Derivative instruments in fair value hedges: (2)
Interest rate contracts	Cost of financing	$	36	$	(14)	$	(31)	$	23
	Interest expense	165		(79)		(142)		123
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	Other (income) and expense	167		(202)		N/A		N/A
Equity contracts	SG&A expense	(53)		(156)		N/A		N/A
Total		$	316	$	(451)	$	(173)	$	146

	Effects of Derivatives Recognized in Consolidated Income Statement and OCI
						(Gains)/Losses
	Gains/(Losses) Recognized in OCI				Consolidated Income Statement Line Item	Reclassified from AOCI				Amounts Excluded from Effectiveness Testing (3)
($ in millions)
For the nine months ended September 30:	2026		2025			2026		2025		2026		2025
Derivative instruments in cash flow hedges:
Interest rate contracts	$	—	$	—	Cost of financing	$	2	$	2	N/A		N/A
					Interest expense	7		9		N/A		N/A
Foreign exchange contracts
Amount included in the assessment of effectiveness	(103)		87		Cost of services	57		12		N/A		N/A
					Cost of sales	(19)		(2)		N/A		N/A
					Cost of financing	2		2		N/A		N/A
					SG&A expense	(7)		(1)		N/A		N/A
					Other (income) and expense	288		(763)		N/A		N/A
					Interest expense	9		9		N/A		N/A
Amount excluded from the assessment of effectiveness	(20)		(207)		Other (income) and expense	N/A		N/A		105		84
Instruments in net investment hedges: (4)
Foreign exchange contracts
Amount included in the assessment of effectiveness	733		(2,252)
Amount excluded from the assessment of effectiveness	(22)		17		Cost of financing	N/A		N/A		(11)		(13)
					Interest expense	N/A		N/A		(48)		(72)
Total	$	588	$	(2,356)		$	338	$	(732)	$	47	$	(1)

(1)The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period.

(2)The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts.

(3)Amounts excluded from effectiveness testing for both net investment hedges and cash flow hedges of foreign currency debt are amortized to net income on a straight line basis over the life of the relevant hedging instrument.

(4)Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries.

N/A - not applicable