v3.25.3
Derivative instruments (Tables)
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Cross-Currency Swaps
The notional amounts and interest rates of our cross-currency swaps as of September 30, 2025, were as follows (notional amounts in millions):
Foreign currencyU.S. dollars
Hedged notesNotional amountsInterest ratesNotional amountsInterest rates
2.00% 2026 euro Notes
€750 2.0 %$833 3.9 %
5.50% 2026 pound sterling Notes
£475 5.5 %$747 6.0 %
4.00% 2029 pound sterling Notes
£700 4.0 %$1,111 4.7 %
Schedule of Unrealized Gains and Losses Recognized in AOCI
Unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions):
 Three months ended
September 30,		Nine months ended
September 30,
Derivatives in cash flow hedging relationships2025202420252024
Foreign currency forward contracts$123 $(238)$(592)$87 
Cross-currency swap contracts(50)80 196 50 
Total unrealized gains (losses)$73 $(158)$(396)$137 
Schedule of Hedged Liabilities and Cumulative Amount
The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the Condensed Consolidated Balance Sheets as follows (in millions):
Carrying amounts of hedged liabilities(1)
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities(2)
Condensed Consolidated Balance Sheets locationsSeptember 30, 2025December 31, 2024September 30, 2025December 31, 2024
Current portion of long-term debt$1,266 $1,045 $16 $45 
Long-term debt$4,670 $5,152 $(175)$(388)
____________
(1)     Current portion of long-term debt includes $51 million and $56 million of carrying value with discontinued hedging relationships as of September 30, 2025 and December 31, 2024, respectively. Long-term debt includes $194 million and $232 million of carrying value with discontinued hedging relationships as of September 30, 2025 and December 31, 2024, respectively.
(2)    Current portion of long-term debt includes $51 million and $56 million of hedging adjustments on discontinued hedging relationships as of September 30, 2025 and December 31, 2024, respectively. Long-term debt includes $94 million and $132 million of hedging adjustments on discontinued hedging relationships as of September 30, 2025 and December 31, 2024, respectively.
Schedule of Income and Expense Line Items
The following tables summarize the amounts recorded in income and expense line items and the effects thereon from fair value and cash flow hedging, including discontinued hedging relationships (in millions):
Three months ended September 30, 2025Nine months ended September 30, 2025
Product salesOther income, netInterest expense, netProduct salesOther income, netInterest expense, net
Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income
$9,137 $2,080 $(685)$25,781 $3,204 $(2,102)
The effects of cash flow and fair value hedging:
(Losses) gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency forward contracts$(28)$— $— $40 $— $— 
Cross-currency swap contracts$— $(39)$— $— $216 $— 
(Losses) gains on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)
$— $— $(27)$— $— $(184)
Derivatives designated as hedging instruments$— $— $40 $— $— $227 
Three months ended September 30, 2024Nine months ended September 30, 2024
Product salesOther income, netInterest expense, netProduct salesOther income, netInterest expense, net
Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income
$8,151 $1,830 $(776)$23,310 $1,288 $(2,408)
The effects of cash flow and fair value hedging:
Gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency forward contracts$45 $— $— $151 $— $— 
Cross-currency swap contracts$— $121 $— $— $87 $— 
(Losses) gains on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)
$— $— $(153)$— $— $(122)
Derivatives designated as hedging instruments$— $— $168 $— $— $176 
__________
(1)    Gains (losses) on hedged items do not exactly offset losses (gains) on the related designated hedging instruments due to amortization of the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedged debt for discontinued hedging relationships and the recognition of gains on terminated hedges when the corresponding hedged item was paid down in the period.
Schedule of Fair Value of Derivatives
The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions):
 Derivative assetsDerivative liabilities
September 30, 2025Condensed Consolidated
Balance Sheets locations		Fair valuesCondensed Consolidated
Balance Sheets locations		Fair values
Derivatives designated as hedging instruments:
Foreign currency forward contractsOther current assets/ Other noncurrent assets$93 
Accrued liabilities/ Other noncurrent liabilities
$261 
Cross-currency swap contractsOther current assets/ Other noncurrent assets48 
Accrued liabilities/ Other noncurrent liabilities
337 
Interest rate swap contractsOther current assets/ Other noncurrent assets1 
Accrued liabilities/ Other noncurrent liabilities
306 
Total derivatives designated as hedging instruments
142 904 
Total derivatives$142 $904 
 Derivative assetsDerivative liabilities
December 31, 2024Condensed Consolidated
Balance Sheets locations		Fair valuesCondensed Consolidated
Balance Sheets locations		Fair values
Derivatives designated as hedging instruments:
Foreign currency forward contractsOther current assets/ Other noncurrent assets$420 
Accrued liabilities/ Other noncurrent liabilities
$8 
Cross-currency swap contractsOther current assets/ Other noncurrent assets— 
Accrued liabilities/ Other noncurrent liabilities
483 
Interest rate swap contractsOther current assets/ Other noncurrent assets— 
Accrued liabilities/ Other noncurrent liabilities
531 
Total derivatives designated as hedging instruments
420 1,022 
Total derivatives$420 $1,022