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
Cash flow hedges
Reclassified from AOCI to Cost of sales
Foreign currency exchange contracts (a)$145 $46 $88 
Commodity contracts (b)(62)(38)22 
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments
(507)(361)(162)
Fair value changes on hedging instruments196 (220)548 
Fair value changes on hedged debt(260)182 (530)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments
(79)(133)(79)
Fair value changes on hedging instruments96 (134)474 
Fair value changes on hedged debt(96)108 (463)
Derivatives not designated as hedging instruments
Foreign currency exchange contracts (c)(38)384 (64)
Cross-currency interest rate swap contracts
127 (272)276 
Interest rate contracts37 (85)(48)
Commodity contracts(49)(48)67 
Total$(490)$(571)$129 
__________
(a)For 2023, 2024, and 2025, a $482 million loss, an $808 million gain, and a $438 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax.
(b)For 2023, 2024, and 2025, a $37 million loss, a $5 million loss, and a $139 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.
(c)For 2023, 2024, and 2025, a $3 million loss, a $116 million gain, and a $71 million gain, respectively, were reported in Cost of sales and a $35 million loss, a $268 million gain, and a $135 million loss were reported in Other income/(loss), net, respectively.
Schedule of Derivative Instruments and the Associated Notional Amounts
The fair value of our derivative instruments and the associated notional amounts at December 31 were as follows (in millions):
 20242025
NotionalFair Value of
Assets		Fair Value of
Liabilities		NotionalFair Value of
Assets		Fair Value of
Liabilities
Cash flow hedges   
Foreign currency exchange contracts
$20,027 $578 $123 $17,750 $98 $114 
Commodity contracts959 22 13 940 122 — 
Fair value hedges
Interest rate contracts16,194 66 645 18,582 374 220 
Cross-currency interest rate swap contracts
3,802 9 139 4,158 383 5 
Derivatives not designated as hedging instruments
Foreign currency exchange contracts20,799 301 192 24,934 150 180 
Cross-currency interest rate swap contracts
5,455 133 246 7,121 379 28 
Interest rate contracts76,977 305 845 87,293 364 619 
Commodity contracts944 14 31 803 56 1 
Total derivative financial instruments, gross (a) (b)
$145,157 $1,428 $2,234 $161,581 $1,926 $1,167 
Current portion
$869 $1,311 $634 $643 
Non-current portion
559 923 1,292 524 
Total derivative financial instruments, gross
$1,428 $2,234 $1,926 $1,167 
__________
(a)At December 31, 2024 and 2025, we held collateral of $27 million and $5 million, respectively, and we posted collateral of $127 million and $102 million, respectively.
(b)At December 31, 2024 and 2025, the fair value of assets and liabilities available for counterparty netting was $780 million and $814 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.