v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 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 March 31 were as follows (in millions):
 First Quarter
Cash flow hedges
20252026
Reclassified from AOCI to Cost of sales
Foreign currency exchange contracts (a)
$74 $(12)
Commodity contracts (b)
11 28 
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments
(48)(7)
Fair value changes on hedging instruments329 (178)
Fair value changes on hedged debt(324)170 
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments
(25)(12)
Fair value changes on hedging instruments146 (203)
Fair value changes on hedged debt(136)204 
Derivatives not designated as hedging instruments
Foreign currency exchange contracts (c)60 (34)
Cross-currency interest rate swap contracts
102 (90)
Interest rate contracts(45)91 
Commodity contracts11 41 
Total$155 $(2)
__________
(a)For the first quarter of 2025 and 2026, a $78 million loss and a $136 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.
(b)For the first quarter of 2025 and 2026, a $4 million loss and a $78 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.
(c)For the first quarter of 2025 and 2026, a $70 million gain and a $63 million loss, respectively, were reported in Cost of sales, and a $10 million loss and a $29 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, 2025March 31, 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 $16,384 $174 $64 
Commodity contracts940 122 — 995 167 7 
Fair value hedges
Interest rate contracts18,582 374 220 21,437 225 244 
Cross-currency interest rate swap contracts
4,158 383 5 5,050 247 69 
Derivatives not designated as hedging instruments
Foreign currency exchange contracts24,934 150 180 24,848 130 256 
Cross-currency interest rate swap contracts
7,121 379 28 5,912 238 33 
Interest rate contracts87,293 364 619 88,018 439 470 
Commodity contracts803 56 1 909 91 4 
Total derivative financial instruments, gross (a) (b)
$161,581 $1,926 $1,167 $163,553 $1,711 $1,147 
Current portion
$634 $643 $682 $748 
Non-current portion
1,292 524 1,029 399 
Total derivative financial instruments, gross
$1,926 $1,167 $1,711 $1,147 
__________
(a)At December 31, 2025 and March 31, 2026, we held collateral of $5 million and $4 million, respectively, and we posted collateral of $102 million and $111 million, respectively.
(b)At December 31, 2025 and March 31, 2026, the fair value of assets and liabilities available for counterparty netting was $814 million and $843 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.