v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Gains/(Losses) by Hedge Designation
The gains/(losses), by hedge designation, reported in income for the years ended December 31 were as follows (in millions):
202320242025
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments
$(507)$(361)$(162)
Fair value changes on hedging instruments196 (220)548 
Fair value changes on hedged debt (260)182 (530)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments(79)(133)(79)
Fair value changes on hedging instruments96 (134)474 
Fair value changes on hedged debt(96)108 (463)
Derivatives not designated as hedging instruments
Interest rate contracts37 (85)(48)
Foreign currency exchange contracts (a)(35)268 (135)
Cross-currency interest rate swap contracts127 (272)276 
Total$(521)$(647)$(119)
__________
(a)Reflects forward contracts between us and an affiliated company.
Schedule of Fair Value of Our Derivative Instruments
The fair value of our derivative instruments and the associated notional amounts at December 31 were as follows (in millions):
20242025
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Fair value hedges
Interest rate contracts$16,194 $66 $645 $18,582 $374 $220 
Cross-currency interest rate swaps3,802 9 139 4,158 383 5 
Derivatives not designated as hedging instruments
Interest rate contracts76,977 305 845 87,293 364 619 
Foreign currency exchange contracts (a)9,716 271 117 6,566 28 75 
Cross-currency interest rate swap contracts5,455 133 246 7,121 379 28 
Total derivative financial instruments, gross (b) (c) $112,144 $784 $1,992 $123,720 $1,528 $947 
__________
(a)Includes forward contracts between us and an affiliated company, including offsetting forward contracts with our consolidated entities, totaling $5.3 billion and $3.5 billion in notional amounts and $115 million and $24 million in both assets and liabilities at December 31, 2024 and 2025, respectively.
(b)At December 31, 2024 and 2025, we held collateral of $27 million and $5 million, and we posted collateral of $127 million and $102 million, respectively.
(c)At December 31, 2024 and 2025, the fair value of assets and liabilities available for counterparty netting was $450 million and $610 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.