v3.26.1
FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Estimated Fair Value of Assets and Liabilities The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Additionally, cash, cash equivalents and time deposits with maturities greater than three months are excluded from the table below, as the carrying value approximates their fair value because of the relatively short-term maturities of these financial instruments. Substantially all of these assets are considered Level 3 and substantially all these liabilities’ fair value are considered Level 2.
June 30, 2026December 31, 2025
Carrying
amount
(net)		Estimated
fair value		Carrying
amount
(net)		Estimated
fair value
AssetsCommercial and residential mortgage loans (Note 12)$2,228 $2,166 $2,197 $2,153 
LiabilitiesBorrowings (Note 10)19,157 18,979 20,494 20,558 
Investment contracts (Note 12)1,093 1,162 1,140 1,199 
Schedule of Fair Value of Derivative Assets
FAIR VALUE OF DERIVATIVESJune 30, 2026December 31, 2025
Classification(a)Gross NotionalFair Value - AssetsFair Value - LiabilitiesGross NotionalFair Value - AssetsFair Value - Liabilities
Qualifying currency exchange contractsCurrent$1,456 $17 $18 $2,125 $38 $17 
Qualifying cross currency interest rate swapsCurrent1,021 26 23 471 17 39 
Qualifying cross currency interest rate swapsNon-Current2,416 — 42 3,079 20 62 
Qualifying interest rate swapsNon-Current1,150 5 14 — — — 
Non-qualifying currency exchange contracts and other(b)Current4,376 65 34 4,983 172 12 
Gross derivatives$10,419 $113 $132 $10,659 $247 $129 
Netting and credit adjustments$(43)$(43)$(60)$(58)
Net derivatives recognized in Statement of Financial Position$70 $89 $187 $71 
(a) The fair values of derivatives classified as current are components of All other current assets and All other current Liabilities. Fair values of derivatives classified as non-current are components of All other assets and All other liabilities in the Statement of Financial Position.
(b) Gains (losses) included in our Statement of Operations were $40 million and $181 million for the three months ended June 30, 2026 and 2025, and $5 million and $216 million for six months ended June 30, 2026 and 2025, respectively, primarily in SG&A, driven by hedges of foreign currency exchange and deferred employee compensation. Substantially all of these amounts are offset by the remeasurement of the underlying exposure through earnings.
Schedule of Fair Value of Derivative Liabilities
FAIR VALUE OF DERIVATIVESJune 30, 2026December 31, 2025
Classification(a)Gross NotionalFair Value - AssetsFair Value - LiabilitiesGross NotionalFair Value - AssetsFair Value - Liabilities
Qualifying currency exchange contractsCurrent$1,456 $17 $18 $2,125 $38 $17 
Qualifying cross currency interest rate swapsCurrent1,021 26 23 471 17 39 
Qualifying cross currency interest rate swapsNon-Current2,416 — 42 3,079 20 62 
Qualifying interest rate swapsNon-Current1,150 5 14 — — — 
Non-qualifying currency exchange contracts and other(b)Current4,376 65 34 4,983 172 12 
Gross derivatives$10,419 $113 $132 $10,659 $247 $129 
Netting and credit adjustments$(43)$(43)$(60)$(58)
Net derivatives recognized in Statement of Financial Position$70 $89 $187 $71 
(a) The fair values of derivatives classified as current are components of All other current assets and All other current Liabilities. Fair values of derivatives classified as non-current are components of All other assets and All other liabilities in the Statement of Financial Position.
(b) Gains (losses) included in our Statement of Operations were $40 million and $181 million for the three months ended June 30, 2026 and 2025, and $5 million and $216 million for six months ended June 30, 2026 and 2025, respectively, primarily in SG&A, driven by hedges of foreign currency exchange and deferred employee compensation. Substantially all of these amounts are offset by the remeasurement of the underlying exposure through earnings.
Schedule of Effects of Derivatives on AOCI
CASH FLOW HEDGES AND NET INVESTMENT HEDGES

Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on DerivativesAmount of Gain (Loss) Reclassified from AOCI into Net Income
Three months ended June 30Six months ended June 30Three months ended June 30Six months ended June 30
20262025202620252026202520262025
Cash flow hedges(a)$(7)$63 $(59)$110 $(6)$7 $(11)$4 
Net investment hedges92 (479)251 (692)— — — — 
(a) Consist of currency exchange contracts and cross-currency interest rate swaps, primarily recognized in SG&A and costs of equipment or services sold in our Statement of Operations.