v3.26.3
Derivative Financial Instruments and Risk Management (Tables)
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Location and Fair Value of Derivative Instruments Reported in the Consolidated Statements of Financial Position
The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows:
(Millions of dollars)September 30, 2026December 31, 2025
Assets1
Liabilities2
Assets1
Liabilities2
Designated derivatives
Foreign exchange contracts$59 $(119)$229 $(94)
Interest rate contracts54 (132)54 (6)
Total$113 $(251)$283 $(100)
Undesignated derivatives
Foreign exchange contracts$71 $(31)$13 $(71)
Total$71 $(31)$13 $(71)
(1)    Assets are classified in the Consolidated Statements of Financial Position as Other assets.
(2)    Liabilities are classified in the Consolidated Statements of Financial Position as Accrued expenses.
Schedule of Gains (Losses) on Derivatives Instruments
Gains (Losses) on derivative instruments were categorized as follows:
(Millions of dollars)Three Months Ended September 30,
Gains (Losses)
Recognized1
Gains (Losses)
Recognized in AOCI
Gains (Losses)
Reclassified from AOCI2
202620252026202520262025
Cash Flow Hedges
Foreign exchange contracts$— $— $(21)$(14)$(23)$— 
Interest rate contracts— — 30 2 3 2 
Fair Value Hedges
Foreign exchange contracts— — (5)(3)(6)(4)
Interest rate contracts3 (8)— — — — 
Undesignated Hedges
Foreign exchange contracts31 17 — — — — 
Total$34 $9 $4 $(15)$(26)$(2)
Nine Months Ended September 30,
Gains (Losses)
Recognized1
Gains (Losses)
Recognized in AOCI
Gains (Losses)
Reclassified from AOCI2
202620252026202520262025
Cash Flow Hedges
Foreign exchange contracts$— $— $(152)$49 $(165)$82 
Interest rate contracts— — 64 (1)6 4 
Fair Value Hedges
Foreign exchange contracts— — (13)(5)(13)(5)
Interest rate contracts11 (24)— — — — 
Undesignated Hedges
Foreign exchange contracts34 (149)— — — — 
Total$45 $(173)$(101)$43 $(172)$81 
(1)    Foreign exchange contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.
(2)    Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.
Schedule of Amounts Recorded in the Consolidated Statements of Financial Position Related to Cumulative Basis Adjustments for Fair Value Hedges
Amounts recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges were as follows:
(Millions of dollars)Carrying Value of
the Hedged Liabilities		Cumulative Amount of Fair Value
Hedging Adjustment Included in the
Carrying Value of the Hedged Liabilities
September 30, 2026December 31, 2025September 30, 2026December 31, 2025
Current maturities of long-term debt$1,244 $602 $(6)$3 
Long-term debt4,723 3,351 (127)51 
Total$5,967 $3,953 $(133)$54 
Schedule of Effect of Net Settlement Provisions of the Master Netting Agreements on our Derivative Balances
The effects of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event were as follows:
(Millions of dollars)September 30, 2026December 31, 2025
AssetsLiabilitiesAssetsLiabilities
Gross amounts recognized$184 $(282)$296 $(171)
Financial instruments not offset(143)143 (100)100 
Net amount$41 $(139)$196 $(71)