v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Income Effect of Derivative Financial Instruments
The gains/(losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions):
 Second QuarterFirst Half
Cash flow hedges
2025202620252026
Reclassified from AOCI to Cost of sales
Foreign currency exchange contracts (a)
$21 $9 $95 $(3)
Commodity contracts (b)
(1)59 10 87 
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments
(44)(7)(92)(14)
Fair value changes on hedging instruments235 (187)564 (365)
Fair value changes on hedged debt(219)186 (543)356 
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments
(18)(14)(43)(26)
Fair value changes on hedging instruments358 (37)504 (240)
Fair value changes on hedged debt(339)29 (475)233 
Derivatives not designated as hedging instruments
Foreign currency exchange contracts (c)(69)(2)(9)(36)
Cross-currency interest rate swap contracts
246 16 348 (74)
Interest rate contracts(18)1 (63)92 
Commodity contracts11 (13)22 28 
Total$163 $40 $318 $38 
__________
(a)For the second quarter and first half of 2025, a $527 million loss and a $605 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax. For the second quarter and first half of 2026, a $93 million gain and a $229 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax
(b)For the second quarter and first half of 2025, a $12 million gain and an $8 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax. For the second quarter and first half of 2026, a $38 million loss and a $40 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.
(c)For the second quarter and first half of 2025, a $56 million gain and a $126 million gain, respectively, were reported in Cost of sales, and a $125 million loss and a $135 million loss, respectively, were reported in Other income/(loss), net. For the second quarter and first half of 2026, a $49 million loss and a $112 million loss, respectively, were reported in Cost of sales, and a $47 million gain and a $76 million gain, respectively, were reported in Other income/(loss), net.
Schedule of Balance Sheet Effect of Derivative Instruments
The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):
December 31, 2025June 30, 2026
NotionalFair Value of
Assets		Fair Value of
Liabilities		NotionalFair Value of
Assets		Fair Value of
Liabilities
Cash flow hedges   
Foreign currency exchange contracts
$17,750 $98 $114 $14,383 $268 $100 
Commodity contracts940 122 — 1,049 84 15 
Fair value hedges
Interest rate contracts18,582 374 220 22,422 170 336 
Cross-currency interest rate swap contracts
4,158 383 5 6,330 234 72 
Derivatives not designated as hedging instruments
Foreign currency exchange contracts24,934 150 180 21,855 175 248 
Cross-currency interest rate swap contracts
7,121 379 28 5,406 204 13 
Interest rate contracts87,293 364 619 84,868 411 432 
Commodity contracts803 56 1 977 53 31 
Total derivative financial instruments, gross (a) (b)
$161,581 $1,926 $1,167 $157,290 $1,599 $1,247 
Current portion
$634 $643 $593 $788 
Non-current portion
1,292 524 1,006 459 
Total derivative financial instruments, gross
$1,926 $1,167 $1,599 $1,247 
__________
(a)At December 31, 2025 and June 30, 2026, we held collateral of $5 million and $4 million, respectively, and we posted collateral of $102 million and $90 million, respectively.
(b)At December 31, 2025 and June 30, 2026, the fair value of assets and liabilities available for counterparty netting was $814 million and $855 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.