v3.25.1
FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Estimated Fair Value of Assets and Liabilities The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and substantially all of our liabilities’ fair value are considered Level 2.
March 31, 2025December 31, 2024
Carrying
amount
(net)		Estimated
fair value		Carrying
amount
(net)		Estimated
fair value
AssetsLoans and other receivables$2,350 $2,089 $2,261 $1,981 
LiabilitiesBorrowings (Note 10)19,571 19,160 19,273 18,805 
Investment contracts(a)1,304 1,372 1,375 1,432 
(a) Primarily related to our run-off insurance operations. See Note 12 for further information.
Schedule of Fair Value of Derivative Assets
FAIR VALUE OF DERIVATIVESMarch 31, 2025December 31, 2024
Gross NotionalAll other current assetsAll other current liabilitiesGross NotionalAll other current assetsAll 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.
Schedule of Fair Value of Derivative Liabilities
FAIR VALUE OF DERIVATIVESMarch 31, 2025December 31, 2024
Gross NotionalAll other current assetsAll other current liabilitiesGross NotionalAll other current assetsAll 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.
Schedule of Effects of Derivatives on AOCI
CASH FLOW HEDGES AND NET INVESTMENT HEDGES

Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on DerivativesAmount of Gain (Loss) Reclassified from AOCI into Net income
Three months ended March 31Three months ended March 31
2025202420252024
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.
(b) The carrying value of foreign currency debt designated as net investment hedges was $5,389 million and $5,199 million at March 31, 2025 and December 31, 2024, respectively.