v3.25.4
Derivatives and Hedging Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the composition of derivative instruments recognized in our consolidated balance sheets, excluding accrued interest, as of December 31 (in millions):
20252024
Fair ValueFair Value
Notional Amount (1)
Assets (2)
Liabilities (3)
Notional Amount (1)
Assets (2)
Liabilities (3)
Net investment hedges
Foreign currency forward contracts$1,224 $14 $8 $966 $39 $17 
Cross-currency interest rate swaps373 7 32 1,986 189 1 
Cash flow hedges
Foreign currency forward contracts1,577 1 72 1,365 53 — 
Cross-currency interest rate swaps2,972 65 58 1,030 48 — 
Non-designated hedges:
Foreign currency forward contracts2,134 2 31 3,536 80 9 
Cross-currency interest rate swaps2,003 166 28 1,395 182 45 
Total$10,283 $255 $229 $10,278 $591 $72 
(1)Excludes embedded derivatives.
(2)As presented in our consolidated balance sheets within other current assets and other assets.
(3)As presented in our consolidated balance sheets within other current liabilities and other liabilities.
Schedule of Net Investment Hedges
The pre-tax gains (losses) from hedging instruments recognized in accumulated other comprehensive income (loss) for the years ended December 31 were as follows (in millions):
202520242023
Net investment hedges:
Foreign currency debt$(129)$68 $(54)
Foreign currency forward contracts (included component)(22)66 (9)
Foreign currency forward contracts (excluded component)3 2 3 
Cross-currency interest rate swaps (included component)(190)149 (73)
Cross-currency interest rate swaps (excluded component)21 4 1 
Total$(317)$289 $(132)
Cash flow hedges:
Foreign currency forward contracts$(125)$65 $(17)
Cross-currency interest rate swaps (excluded component)38 (17)(2)
Interest rate locks(2)(1)(5)
Total
$(89)$47 $(24)
Schedule of Cash Flow Hedges
The gains (losses) from derivative instruments recognized in earnings, and the location of such gains (losses) in the consolidated statements of operations for the years ended December 31 were as follows (in millions):
Location of gain (loss)202520242023
Net investment hedges:
Foreign currency forward contracts (excluded component)Interest expense$15 $10 $2 
Cross-currency interest rate swaps (excluded component)Interest expense11 27 45 
Total$26 $37 $47 
Cash flow hedges:
Foreign currency forward contracts
Revenues
$(43)$11 $(9)
Foreign currency forward contracts
Costs and operating expenses19 (6)15 
Cross-currency interest rate swaps (excluded component)
Interest expense
13 8 (1)
Cross-currency interest rate swaps (included component)Other income (expense)(79)29 17 
Interest rate locksInterest expense3 1 1 
Total
$(87)$43 $23 
Non-designated hedges:
Foreign currency forward contracts
Other income (expense)
(113)154 (20)
Cross-currency interest rate swaps
Other income (expense)
(30)18 6 
Total$(143)$172 $(14)
Schedule of Offsetting Derivative Assets and Liabilities The following table presents information related to these offsetting arrangements, inclusive of accrued interest (in millions):
Gross AmountsGross Amounts Offset in the Balance SheetNet AmountsGross Amounts Not Offset in the Balance SheetNet
December 31, 2025
Derivative assets
$267 $— $267 $(80)$187 
Derivative liabilities241 — 241 (80)161 
December 31, 2024
Derivative assets
$605 $— $605 $(75)$530 
Derivative liabilities79 — 79 (75)4 
Schedule of Offsetting Derivative Assets and Liabilities The following table presents information related to these offsetting arrangements, inclusive of accrued interest (in millions):
Gross AmountsGross Amounts Offset in the Balance SheetNet AmountsGross Amounts Not Offset in the Balance SheetNet
December 31, 2025
Derivative assets
$267 $— $267 $(80)$187 
Derivative liabilities241 — 241 (80)161 
December 31, 2024
Derivative assets
$605 $— $605 $(75)$530 
Derivative liabilities79 — 79 (75)4