v3.26.1
Derivatives and Hedging Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts and Fair Value of Derivative Instruments
The following table presents the composition of derivative instruments recognized in our condensed consolidated balance sheets, excluding accrued interest (in millions):
June 30, 2026December 31, 2025
Notional Amount (1)
Fair Value
Notional Amount (1)
Fair Value
Assets (2)
Liabilities (3)
Assets (2)
Liabilities (3)
Net investment hedges:
Foreign currency forward contracts$421 $16 $10 $1,224 $14 $8 
Cross-currency interest rate swaps350 — 21 373 7 32 
Cash flow hedges:
Foreign currency forward contracts1,563 21 26 1,577 1 72 
Cross-currency interest rate swaps3,603 2 40 2,972 65 58 
Interest rate locks514 — 6 — — — 
Non-designated hedges:
Foreign currency forward contracts3,973 69 33 2,134 2 31 
Cross-currency interest rate swaps792 7 4 2,003 166 28 
Total$11,216 $115 $140 $10,283 $255 $229 
(1)Excludes embedded derivatives.
(2)As presented in our condensed consolidated balance sheets within other current assets and other assets.
(3)As presented in our condensed consolidated balance sheets within other current liabilities and other liabilities.
Schedule of Impact on Accumulated Other Comprehensive Income (Loss)
The pre-tax gains (losses) from hedging instruments recognized in accumulated other comprehensive income (loss) were as follows (in millions):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net investment hedges:
Foreign currency debt$— $(111)$2 $(152)
Foreign currency forward contracts (included component)(15)(39)(5)(45)
Foreign currency forward contracts (excluded component)1 — (2)— 
Cross-currency interest rate swaps (included component)8 (94)19 (190)
Cross-currency interest rate swaps (excluded component)(9)(1)(8)14 
Total$(15)$(245)$6 $(373)
Cash flow hedges:
Foreign currency forward contracts$18 $(128)$66 $(185)
Cross-currency interest rate swaps (excluded component)(55)(2)(47)26 
Interest rate locks(7)1 (8)1 
Total$(44)$(129)$11 $(158)
Schedule of Impact on Earnings
The gains (losses) from derivative instruments recognized in earnings, and the location of such gains (losses) in our condensed consolidated statements of operations were as follows (in millions):
Three Months Ended
June 30,		Six Months Ended
June 30,
Location of gain (loss)2026202520262025
Net investment hedges:
Foreign currency forward contracts (excluded component)Interest expense$2 $3 $5 $5 
Cross-currency interest rate swaps (excluded component)Interest expense1 3 2 8 
Total$3 $6 $7 $13 
Cash flow hedges:
Foreign currency forward contractsRevenues$(19)$(12)$(47)$6 
Foreign currency forward contractsCosts and operating expenses10 6 24 (3)
Cross-currency interest rate swaps (excluded component)Interest expense7 3 12 7 
Cross-currency interest rate swaps (included component)Other income (expense)21 (43)58 (64)
Interest rate locksInterest expense1 1 2 1 
Total$20 $(45)$49 $(53)
Non-designated hedges:
Foreign currency forward contractsOther income (expense)$3 $(59)$(1)$(103)
Foreign currency forward contractsRevenues(2)— (3)— 
Cross-currency interest rate swapsOther income (expense)1 (56)3 (54)
Total$2 $(115)$(1)$(157)
Schedule of Offsetting Derivative Assets and Liabilities The following table presents information related to these offsetting arrangements, inclusive of accrued interest (in millions):
Gross AmountsGross Amounts Offset in the Balance SheetNet AmountsGross Amounts Not Offset in the Balance SheetNet
June 30, 2026
Derivative assets$141 $— $141 $(108)$33 
Derivative liabilities161 — 161 (108)53 
December 31, 2025
Derivative assets$267 $— $267 $(80)$187 
Derivative liabilities241 — 241 (80)161 
Schedule of Offsetting Derivative Assets and Liabilities The following table presents information related to these offsetting arrangements, inclusive of accrued interest (in millions):
Gross AmountsGross Amounts Offset in the Balance SheetNet AmountsGross Amounts Not Offset in the Balance SheetNet
June 30, 2026
Derivative assets$141 $— $141 $(108)$33 
Derivative liabilities161 — 161 (108)53 
December 31, 2025
Derivative assets$267 $— $267 $(80)$187 
Derivative liabilities241 — 241 (80)161