v3.25.2
Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts:
 June 30, 2025December 31, 2024
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Derivatives designated as hedges
Fair value hedges
Interest rate swaps$43,883 $158 $511 $36,145 $32 $621 
Cash flow hedges
Interest rate swaps2,179 23 26 1,873 35 4 
Foreign currency swaps9,087 686 51 8,363 80 508 
Derivatives not designated as hedges
Interest rate contracts121,711 504 781 123,346 833 1,294 
Total$176,860 $1,370 $1,368 $169,727 $981 $2,427 
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following amounts were recorded in the condensed consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships:
Carrying Amount of
Hedged Items
Cumulative Amount of Fair Value
Hedging Adjustments(a)
June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Unsecured debt$35,924 $36,664 $759 $1,281 
 _________________
(a)Includes $594 million and $719 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at June 30, 2025 and December 31, 2024.
Schedule of Effect of Derivative Instruments on the Condensed Consolidated Statements of Income
The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Interest Expense(a)
Operating Expenses(b)
Interest Expense(a)
Operating Expenses(b)
Interest Expense(a)
Operating Expenses(b)
Interest Expense(a)
Operating Expenses(b)
Fair value hedges
Hedged items - interest rate swaps$(200)$— $62 $— $(521)$— $192 $— 
Interest rate swaps149 — (130)— 400 — (287)— 
Cash flow hedges
Interest rate swaps4 — 4 — 8 — 11 — 
Hedged items - foreign currency swaps(c)
— (652)— 30 — (992)— 208 
Foreign currency swaps(18)652 (34)(30)(52)992 (75)(206)
Derivatives not designated as hedges
Interest rate contracts(22)— 42 — (14)— 75 — 
Foreign currency contracts— — — (2)— — — — 
Total income (loss) recognized$(86)$— $(56)$(2)$(179)$(1)$(84)$1 
_________________
(a)Total interest expense was $1.6 billion and $1.5 billion for the three months ended June 30, 2025 and 2024, and $3.2 billion and $2.9 billion for the six months ended June 30, 2025 and 2024.
(b)Total operating expenses were $523 million and $479 million for the three months ended June 30, 2025 and 2024, and $1.0 billion and $937 million for the six months ended June 30, 2025 and 2024.
(c)Transaction activity recorded in operating expenses related to foreign currency-denominated debt.
The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income:
 Gains (Losses) Recognized In
Accumulated Other Comprehensive Income (Loss)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Cash flow hedges
Interest rate swaps$(10)$17 $(24)$26 
Foreign currency swaps489 (74)645 (215)
Total$478 $(57)$621 $(189)
(Gains) Losses Reclassified From Accumulated Other
Comprehensive Income (Loss) Into Income (Loss)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Cash flow hedges
Interest rate swaps$(4)$(2)$(6)$(7)
Foreign currency swaps(480)49 (711)212 
Total$(483)$48 $(717)$206