v3.26.1
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Effect of Net Investment Hedges on OCI and the Consolidated Statement of Operations
The effects of the Company’s net investment hedges on OCI and the Condensed Consolidated Statement of Income are shown below:
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income (1)
Amount of Pretax Gain Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing
Three Months Ended June 30,Six Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,
($ in millions)20262025202620252026202520262025
Net Investment Hedging Relationships
Foreign exchange contracts$(9)$38 $(24)$65 $(5)$(5)$(10)$(8)
Euro-denominated notes(59)411 (196)541 — — — — 
(1)    No amounts were reclassified from AOCL into income related to the sale of a subsidiary.
Schedule of Interest Rate Swaps Held
At June 30, 2026, the Company was a party to ten pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of a portion of fixed-rate notes as detailed in the table below.
June 30, 2026
($ in millions)
Par Value of Debt
Number of Interest Rate Swaps Held
Total Swap Notional Amount
4.50% notes due 2033
$1,500 6 $1,500 
4.75% notes due 2035
1,500 2 500 
5.00% notes due 2053
1,500 2 500 
Schedule of Amounts Recorded on Balance Sheet Related to Fair Value Hedges
The table below presents the location of amounts recorded in the Condensed Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Carrying Amount of Hedged Liabilities
Cumulative Amount of Fair Value Hedging Adjustment Increase Included in the Carrying Amount
($ in millions)
June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Balance Sheet Caption
Long-Term Debt
$2,508 $1,810 $25 $70 
Schedule of Fair Value of Derivatives on a Gross Basis Segregated between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments
Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments:
June 30, 2026December 31, 2025
Fair Value of DerivativeU.S. Dollar
Notional		Fair Value of DerivativeU.S. Dollar
Notional
($ in millions)AssetLiabilityAssetLiability
Derivatives Designated as Hedging InstrumentsBalance Sheet Caption
Interest rate swap contracts
Other Assets
$31 $— $1,750 $71 $— $1,750 
Interest rate swap contractsOther Noncurrent Liabilities— 5 750 — — — 
Foreign exchange contractsOther current assets282 — 8,357 113 — 6,430 
Foreign exchange contractsOther Assets45 — 1,762 32 — 1,793 
Foreign exchange contractsAccrued and other current liabilities— 18 2,688 — 131 4,726 
Foreign exchange contractsOther Noncurrent Liabilities— 1 46 — 1 13 
$358 $24 $15,353 $216 $132 $14,712 
Derivatives Not Designated as Hedging InstrumentsBalance Sheet Caption
Total return swap contractsOther current assets$8 $— $486 $— $— $— 
Total return swap contractsAccrued and other current liabilities— 1 117 — — — 
Foreign exchange contractsOther current assets203 — 9,839 107 — 11,643 
Foreign exchange contractsAccrued and other current liabilities— 227 11,534 — 191 13,579 
Foreign exchange contracts
Other Noncurrent Liabilities
— — — — 1 357 
$211 $228 $21,976 $107 $192 $25,579 
$569 $252 $37,329 $323 $324 $40,291 
Schedule of Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis The following table provides information on the Company’s derivative positions subject to these master netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes:
June 30, 2026December 31, 2025
($ in millions)AssetLiabilityAssetLiability
Gross amounts recognized in the condensed consolidated balance sheet$569 $252 $323 $324 
Gross amounts subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet(211)(211)(245)(245)
Cash collateral received
(154)— (1)— 
Net amounts$204 $41 $77 $79 
Schedule of Location and Amount of Pretax Gains and Losses of Derivatives
The table below provides information regarding the location and amount of pretax gains and losses of derivatives designated in fair value or cash flow hedging relationships:
Three Months Ended June 30,Six Months Ended June 30,
($ in millions)202620252026202520262025202620252026202520262025
Financial Statement Caption in which Effects of Fair Value or Cash Flow
Hedges are Recorded		Sales
Other (income) expense, net (1)
Other comprehensive income (loss)Sales
Other (income) expense, net (1)
Other comprehensive income (loss)
$16,607 $15,806 $99 $(7)$118 $(456)$32,893 $31,335 $237 $(43)$345 $(476)
(Gain) loss on fair value hedging relationships:
Interest rate swap contracts
Hedged items— — (32)20 — — — — (45)58 — — 
Derivatives designated as hedging instruments— — 32 (19)— — — — 45 (58)— — 
Impact of cash flow hedging relationships:
Foreign exchange contracts
Amount of gain (loss) recognized in OCI on derivatives
— — — — 41 (542)— — — — 209 (743)
(Decrease) increase in Sales as a result of AOCL reclassifications
(34)(23)— — 34 23 (133)50 — — 133 (50)
Interest rate contracts
Amount of gain recognized in Other (income) expense, net on derivatives
— — (1)— — — — — (2)(1)— — 
Amount of gain (loss) recognized in OCI on derivatives
— — — — 19 — — — — — 26 (1)
(1)    Interest expense is a component of Other (income) expense, net.
Schedule of Income Statement Effects of Derivatives Not Designated as Hedging Instruments
The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments:
Amount of Derivative Pretax Loss (Gain) Recognized in Income
Three Months Ended June 30,Six Months Ended June 30,
($ in millions)2026202520262025
Derivatives Not Designated as Hedging InstrumentsIncome Statement Caption
Foreign exchange contracts (1)
Other (income) expense, net$108 $(237)$144 $(256)
Foreign exchange contracts (2)
Sales7 17 20 34 
Total return swap contracts (3)
Selling, general and administrative(7)— (7)— 
(1)    These derivative contracts primarily mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates.
(2)    These derivative contracts serve as economic hedges of forecasted transactions.
(3)    These derivative contracts are utilized to offset changes in the fair value of certain deferred compensation.
Schedule of Information on Investments in Debt and Equity Securities
Information on investments in debt and equity securities is as follows:
June 30, 2026December 31, 2025
Amortized
Cost		Gross UnrealizedFair
Value		Amortized
Cost		Gross UnrealizedFair
Value
($ in millions)GainsLossesGainsLosses
Commercial paper$292 $— $— $292 $— $— $— $— 
Foreign government bonds
— — — — 1 — — 1 
U.S. government and agency securities— — — — 100 — — 100 
Total debt securities$292 $— $— $292 $101 $— $— $101 
Publicly traded equity securities (1)
1,274 1,392 
Total debt and publicly traded equity securities$1,566 $1,493 
(1)    Unrealized net losses of $41 million and unrealized net gains of $86 million were recorded in Other (income) expense, net in the second quarter and first six months of 2026, respectively, on equity securities still held at June 30, 2026. Unrealized net gains of $147 million and $262 million were recorded in Other (income) expense, net in the second quarter and first six months of 2025, respectively, on equity securities still held at June 30, 2025.
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
Fair Value Measurements UsingFair Value Measurements Using
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
($ in millions)June 30, 2026December 31, 2025
Assets
Investments
Commercial paper$— $292 $— $292 $— $— $— $— 
Foreign government bonds
— — — — — 1 — 1 
Publicly traded equity securities1,222 — — 1,222 955 — — 955 
1,222 292 — 1,514 955 1 — 956 
Other assets (1)
U.S. government and agency securities— — — — 100 — — 100 
Publicly traded equity securities (2)
52 — — 52 437 — — 437 
52 — — 52 537 — — 537 
Derivative assets (3)
Forward exchange contracts— 336 — 336 — 168 — 168 
Purchased currency options— 194 — 194 — 84 — 84 
Interest rate swap contracts— 31 — 31 — 71 — 71 
Total return swap contracts— 8 — 8 — — — — 
— 569 — 569 — 323 — 323 
Total assets$1,274 $861 $— $2,135 $1,492 $324 $— $1,816 
Liabilities
Derivative liabilities (3)
Forward exchange contracts$— $232 $— $232 $— $293 $— $293 
Written currency options— 14 — 14 — 31 — 31 
Interest rate swap contracts— 5 — 5 — — — — 
Total return swap contracts— 1 — 1 — — — — 
Total liabilities$— $252 $— $252 $— $324 $— $324 
(1)    Investments included in other assets are restricted as to use, including for the payment of benefits under employee benefit plans.
(2)    Balance at June 30, 2026 includes securities with a fair value of $31 million that are subject to a contractual sale restriction that expired in July 2026, and securities with a fair value of $22 million that are subject to a contractual sale restriction that expires in August 2026.
(3)    The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant.