
		March 31, 2025				December 31, 2024
		Carrying amount (net)		Estimated fair value		Carrying amount (net)		Estimated fair value
Assets	Loans and other receivables	$	2,350	$	2,089	$	2,261	$	1,981

Liabilities	Borrowings (Note 10)	19,571		19,160		19,273		18,805
	Investment contracts(a)	1,304		1,372		1,375		1,432

Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include cash and cash equivalents, investment securities (Note 3) and derivative financial instruments below.

DERIVATIVES AND HEDGING. Our policy requires that derivatives are used solely for managing risks and not for speculative purposes. We use derivatives to manage risks related to foreign currency exchange (including foreign equity investments), interest rates and commodity prices.

We use currency exchange contracts (including cross-currency swaps) for net investment hedges to hedge investments in our foreign operations, or for cash flow hedges primarily to reduce or eliminate the effects of foreign exchange rate changes. Gains and losses on derivatives used in qualified hedges are initially recognized in our Statement of Other Comprehensive Income (Loss) except for interest on cross-currency swaps. For cross-currency swaps, we recognize the periodic interest settlements within Interest and other financial charges in the Statement of Operations, and the cash flows associated with these periodic interest settlements are classified as operating activities in the Statement of Cash Flows. Settlements from termination of all qualified hedges are classified in the Statement of Cash Flows following the nature of the hedged items (e.g., investing activities for derivatives used to hedge investments in our foreign operations).

We also use derivatives for economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in income in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on income in each period due to differences in the timing of income recognition between the derivative and the hedged item.


FAIR VALUE OF DERIVATIVES	March 31, 2025						December 31, 2024
	Gross Notional		All other current assets		All other current liabilities		Gross Notional		All other current assets		All other current liabilities


Qualifying currency exchange contracts(a)	$	2,205	$	21	$	19	$	2,289	$	44	$	40




Non-qualifying currency exchange contracts and other(b)	6,964		202		39		6,759		199		91

Gross derivatives	$	9,169	$	223	$	58	$	9,047	$	243	$	131

Netting and credit adjustments			$	(32)	$	(32)			$	(55)	$	(54)

Net derivatives recognized in statement of financial position			$	191	$	25			$	188	$	77

(a) Gains (losses) on interest settlements related to cross-currency swaps included in our Statement of Operations are $2 million and zero for the three months ended March 31, 2025 and 2024, respectively.

(b) Gains (losses) included in our Statement of Operations are $35 million and $22 million for the three months ended March 31, 2025 and 2024, respectively, primarily in SG&A, driven by hedges of foreign exchange fluctuation. Substantially all of these amounts are offset by the remeasurement of the underlying exposure through income.


	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives	Amount of Gain (Loss) Reclassified from AOCI into Net income
	Three months ended March 31	Three months ended March 31
			2025		2024		2025		2024
Cash flow hedges(a)			$	47	$	(7)	$	(3)	$	7
Net investment hedges(b)			(213)		82		—		—

(a) Primarily currency exchange contracts, and recognized in Costs of equipment or services sold in our Statement of Operations. We expect to reclassify a $13 million gain from AOCI to net income in the next 12 months contemporaneously with the income effects of the related forecasted transactions.

FAIR VALUE HEDGES. We used fair value hedges to hedge the effects of interest rate and currency changes on debt we issued. All fair value hedges were terminated in 2022 due to exposure management actions. The cumulative net gains related to hedging adjustments of $1,026 million and $1,037 million on discontinued hedges were included primarily in long-term borrowings of $8,526 million and $8,387 million as of March 31, 2025 and December 31, 2024, respectively, and will continue to amortize into interest expense until the borrowings mature.

COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest) were $191 million and $188 million at March 31, 2025 and December 31, 2024, respectively. Counterparties' exposures to our derivative liability (including accrued interest), were $25 million and $77 million at March 31, 2025 and December 31, 2024, respectively.