v3.26.3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 9 Months Ended
Sep. 30, 2026
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 periods ended September 30 were as follows (in millions):
Third QuarterFirst Nine Months
2025202620252026
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments$(45)$— $(137)$(14)
Fair value changes on hedging instruments34 (861)598 (1,226)
Fair value changes on hedged debt (33)832 (576)1,188 
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments(23)(15)(66)(41)
Fair value changes on hedging instruments(14)(193)490 (433)
Fair value changes on hedged debt(1)189 (476)422 
Derivatives not designated as hedging instruments
Interest rate contracts— 173 (63)265 
Foreign currency exchange contracts (a)6 43 (129)119 
Cross-currency interest rate swap contracts(49)(45)299 (119)
Total$(125)$123 $(60)$161 
__________
(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 were as follows (in millions):
December 31, 2025September 30, 2026
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Fair value hedges
Interest rate contracts$18,582 $374 $220 $22,167 $6 $879 
Cross-currency interest rate swap contracts4,158 383 5 6,330 166 217 
Derivatives not designated as hedging instruments
Interest rate contracts87,293 364 619 86,290 826 704 
Foreign currency exchange contracts (a)6,566 28 75 3,819 75 — 
Cross-currency interest rate swap contracts7,121 379 28 6,257 191 70 
Total derivative financial instruments, gross (b) (c) $123,720 $1,528 $947 $124,863 $1,264 $1,870 
__________
(a)Includes forward contracts between us and an affiliated company, including offsetting forward contracts with our consolidated entities, totaling $3.5 billion in notional amounts and $24 million in both assets and liabilities at December 31, 2025. The balances were zero for notional amounts, assets, and liabilities at September 30, 2026.
(b)At December 31, 2025 and September 30, 2026, we held collateral of $5 million and $50 million, respectively, and we posted collateral of $102 million and $139 million, respectively.
(c)At December 31, 2025 and September 30, 2026, the fair value of assets and liabilities available for counterparty netting was $610 million and $778 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.