Quarterly report [Sections 13 or 15(d)]

DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables)

v3.26.3
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables)
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
As of September 30, 2026 and December 31, 2025, the notional amounts of our outstanding derivative positions were as follows (in millions):
September 30,
2026		 December 31,
2025
Currency hedges:
Euro EUR 3,133  2,764 
British Pound Sterling GBP 446  410 
Canadian Dollar CAD 1,327  1,574 
Hong Kong Dollar HKD 5,556  4,317 
Chinese Renminbi CNH 8,780  6,743 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table indicates the location in our consolidated balance sheets where our derivative assets and liabilities have been recognized, the fair value hierarchy level applicable to each derivative type and the related fair values of those derivatives.
We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded in our consolidated balance sheets. The columns labeled Net Amounts if Right of Offset had been Applied indicate the potential net fair value positions by type of contract and location in our consolidated balance sheets had we elected to apply the right of offset as of September 30, 2026 and December 31, 2025 (in millions):
Fair Value Hierarchy Level Gross Amounts Presented in Consolidated Balance Sheets Net Amounts if Right of
Offset had been Applied
Asset Derivatives Balance Sheet Location September 30,
2026		 December 31,
2025		 September 30,
2026		 December 31,
2025
Derivatives designated as hedges:
Foreign currency exchange contracts Other current assets Level 2 $ 44  $ 5  $ 20  $ — 
Foreign currency exchange contracts Other non-current assets Level 2 62  4  36  — 
Total Asset Derivatives $ 106  $ 9  $ 56  $ — 
Fair Value Hierarchy Level Gross Amounts Presented in
Consolidated Balance Sheets		 Net Amounts if Right of
Offset had been Applied
Liability Derivatives Balance Sheet Location September 30,
2026		 December 31,
2025		 September 30,
2026		 December 31,
2025
Derivatives designated as hedges:
Foreign currency exchange contracts Other current liabilities Level 2 $ 29  $ 83  $ 5  $ 78 
Foreign currency exchange contracts Other non-current liabilities Level 2 37  91  11  87 
Total Liability Derivatives $ 66  $ 174  $ 16  $ 165 
The following table indicates the amounts that were recorded in our consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of September 30, 2026 and December 31, 2025 (in millions):
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included Carrying Amount
of Hedged Liabilities		 Cumulative Amount
of Fair Value Hedge
Adjustments		 Carrying Amount
of Hedged Liabilities		 Cumulative Amount
 of Fair Value Hedge
Adjustments
September 30, 2026 September 30, 2026 December 31, 2025 December 31, 2025
Long-term debt and finance leases $ 278  $ 3  $ 279  $ 3 
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The following table indicates the amount of gains (losses) that were recognized in Revenue in our statements of consolidated income for cash flow hedges during the three and nine months ended September 30, 2026 and 2025 (in millions):


 Three Months Ended
September 30,		 Nine Months Ended
 September 30,
2026 2025 2026 2025
Gain or (loss) on cash flow hedging relationships:
Foreign currency exchange contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income $ (5) $ (17) $ (45) $ 44 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table indicates the amount of gains (losses) that were recognized in AOCI during the three and nine months ended September 30, 2026 and 2025 for those derivatives designated as cash flow hedges (in millions):
Derivative Instruments in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives
2026 2025
Three Months Ended September 30:
Foreign currency exchange contracts $ 34  $ 80 
Total $ 34  $ 80 
Nine Months Ended September 30:
Foreign currency exchange contracts $ 153  $ (425)
Total $ 153  $ (425)
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)
The following table indicates the amount of gains (losses) that have been recognized in AOCI within foreign currency translation adjustment during the three and nine months ended September 30, 2026 and 2025 for those instruments designated as net investment hedges (in millions):
Non-derivative Instruments in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Debt
2026 2025
Three Months Ended September 30:
Foreign currency denominated debt $ 4  $ 10 
Total $ 4  $ 10 
Nine Months Ended September 30:
Foreign currency denominated debt $ 53  $ (260)
Total $ 53  $ (260)