v3.25.2
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
As of June 30, 2025 and December 31, 2024, the notional amounts of our outstanding derivative positions were as follows (in millions):
 June 30,
2025		December 31,
2024
Currency hedges:
EuroEUR3,138 3,222 
British Pound SterlingGBP463 536 
Canadian DollarCAD1,672 1,623 
Hong Kong DollarHKD4,388 4,160 
Chinese RenminbiCNH7,693 6,065 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
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 June 30, 2025 and December 31, 2024 (in millions):
Fair Value Hierarchy LevelGross Amounts Presented in Consolidated Balance SheetsNet Amounts if Right of
Offset had been Applied
Asset DerivativesBalance Sheet LocationJune 30,
2025		December 31,
2024		June 30,
2025		December 31,
2024
Derivatives designated as hedges:
Foreign currency exchange contractsOther current assetsLevel 2$14 $157 $— $152 
Foreign currency exchange contractsOther non-current assetsLevel 22 134 — 131 
Total Asset Derivatives$16 $291 $— $283 
Fair Value Hierarchy LevelGross Amounts Presented in
Consolidated Balance Sheets		Net Amounts if Right of
Offset had been Applied
Liability DerivativesBalance Sheet LocationJune 30,
2025		December 31,
2024		June 30,
2025		December 31,
2024
Derivatives designated as hedges:
Foreign currency exchange contractsOther current liabilitiesLevel 2$119 $5 $105 $— 
Foreign currency exchange contractsOther non-current liabilitiesLevel 2172 3 170 — 
Derivatives not designated as hedges:
Foreign currency exchange contractsOther current liabilitiesLevel 21 — 1 — 
Total Liability Derivatives$292 $8 $276 $— 
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 June 30, 2025 and December 31, 2024 (in millions):
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is IncludedCarrying Amount
of Hedged Liabilities		Cumulative Amount
of Fair Value Hedge
Adjustments		Carrying Amount
of Hedged Liabilities		Cumulative Amount
 of Fair Value Hedge
Adjustments
June 30, 2025June 30, 2025December 31, 2024December 31, 2024
Long-term debt and finance leases$279 $4 $279 $4 
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The following table indicates the amount of gains (losses) that have been recognized in our statements of consolidated income for fair value and cash flow hedges, as well as the associated gain (loss) for the underlying hedged item for fair value hedges for the three and six months ended June 30, 2025 and 2024 (in millions):


Three Months Ended June 30,
Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships20252024
RevenueInterest ExpenseInvestment Income and OtherRevenueInterest ExpenseInvestment Income and Other
Gain or (loss) on cash flow hedging relationships:
Interest Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income$— $(2)$— $— $(2)$— 
Foreign Currency Exchange Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income4 — — 47 — — 
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$4 $(2)$— $47 $(2)$— 



Six Months Ended June 30,
Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships20252024
RevenueInterest ExpenseInvestment Income and OtherRevenueInterest ExpenseInvestment Income and Other
Gain or (loss) on cash flow hedging relationships:
Interest Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income$— $(3)$— $— $(3)$— 
Foreign Currency Exchange Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income61 — — 88 — — 
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$61 $(3)$— $88 $(3)$— 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table indicates the amount of gains (losses) that have been recognized in AOCI for the three and six months ended June 30, 2025 and 2024 for those derivatives designated as cash flow hedges (in millions):
Three Months Ended June 30:
Derivative Instruments in Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Derivatives
20252024
Foreign currency exchange contracts$(379)$49 
Total$(379)$49 
Six Months Ended June 30:
Derivative Instruments in Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Derivatives
20252024
Foreign currency exchange contracts$(505)$185 
Total$(505)$185 
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)
The following table indicates the amount of gains (losses) that have been recognized in AOCI within foreign currency translation adjustment for the three and six months ended June 30, 2025 and 2024 for those instruments designated as net investment hedges (in millions):
Three Months Ended June 30:
Non-derivative Instruments in Net Investment Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Debt
20252024
Foreign currency denominated debt$(189)$18 
Total$(189)$18 
Six Months Ended June 30:
Non-derivative Instruments in Net Investment Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Debt
20252024
Foreign currency denominated debt$(270)$84 
Total$(270)$84 
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
Amounts recorded in our statements of consolidated income related to fair value changes and settlements of foreign currency forward contracts not designated as hedges for the three and six months ended June 30, 2025 and 2024 (in millions) were as follows:
Derivative Instruments Not Designated in
Hedging Relationships		Location of Gain (Loss)
Recognized in Income		Amount of Gain (Loss) Recognized in Income
20252024
Three Months Ended June 30:
Foreign currency exchange contractsInvestment income and other$(5)$1 
Total$(5)$1 
Six Months Ended June 30:
Foreign currency exchange contractsInvestment income and other$(9)$(4)
Total $(9)$(4)