
		June 30, 2024				December 31, 2023
		Carrying amount (net)		Estimated fair value		Carrying amount (net)		Estimated fair value
Assets	Loans and other receivables	$	2,071	$	1,977	$	2,110	$	2,055

Liabilities	Borrowings (Note 10)	19,673		18,949		20,525		20,218
	Investment contracts (Note 12)	1,451		1,507		1,535		1,616

Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include cash and equivalents, investment securities and derivative financial instruments.

DERIVATIVES AND HEDGING. Our policy requires that derivatives are used solely for managing risks and not for speculative purposes. We use derivatives to manage currency risks related to foreign exchange, and interest rate and currency risk between financial assets and liabilities, and certain equity investments and commodity prices.

We use cash flow hedges primarily to reduce or eliminate the effects of foreign exchange rate changes, net investment hedges to hedge investments in foreign operations as well as fair value hedges to hedge the effects of interest rate and currency changes on debt we issued. We also use derivatives not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. We use economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in earnings in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on earnings in each period due to differences in the timing of earnings recognition between the derivative and the hedged item.


FAIR VALUE OF DERIVATIVES	June 30, 2024						December 31, 2023
	Gross Notional		All other current assets		All other current liabilities		Gross Notional		All other current assets		All other current liabilities


Qualifying currency exchange contracts	$	1,287	$	15	$	12	$	1,613	$	26	$	22




Non-qualifying currency exchange contracts and other(a)	6,842		208		17		16,277		245		56

Gross derivatives	$	8,129	$	223	$	29	$	17,890	$	271	$	78

Netting and credit adjustments			$	(13)	$	(13)			$	(28)	$	(26)

Net derivatives recognized in statement of financial position			$	210	$	16			$	243	$	53

(a) Gains and (losses) included in our statement of earnings (loss) are $40 million and $46 million for the three months and $62 million and $179 million for the six months ended June 30, 2024 and 2023, respectively, primarily in SG&A, driven by hedges of deferred incentive compensation.

FAIR VALUE HEDGES. All the fair value hedges were terminated in 2022 due to exposure management actions. The cumulative net gains of hedging adjustments $1,101 million and $1,162 million on discontinued hedges were included primarily in long-term borrowings of $8,551 and $9,253 million at June 30, 2024 and December 31, 2023, respectively, and will continue to amortize into interest expense until the borrowings mature.


	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives								Amount of Gain (Loss) Reclassified from AOCI into Net Income
	Three months and six months ended June 30								Three months and six months ended June 30
	2024		2023		2024		2023		2024		2023		2024		2023
Cash flow hedges(a)	$	(14)	$	19	$	(21)	$	38	$	5	$	17	$	12	$	18
Net investment hedges(b)	68		(68)		150		(133)		—		—		—		—

COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest) was $210 million and $241 million at June 30, 2024 and December 31, 2023, respectively. Counterparties' exposures to our derivative liability (including accrued interest), was $16 million and $53 million at June 30, 2024 and December 31, 2023, respectively.