v3.25.4
Derivative instruments (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 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 %$1,111 4.7 %
Schedule of Unrealized Gains and Losses Recognized in AOCI
Unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions):
Years ended December 31,
Derivatives in cash flow hedging relationships202520242023
Foreign currency forward contracts$(464)$585 $(14)
Cross-currency swap contracts214 (79)73 
Forward interest rate contracts— — (31)
Total unrealized (losses) gains$(250)$506 $28 
Schedule of Interest Rate Derivatives
As of December 31, 2025 and 2024, the interest rates on the portion of notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions):
December 31,
20252024
NotesNotional amounts
Interest rates
Notional amounts
Interest rates
3.125% 2025 Notes
$— 
N/A
$1,000 
SOFR + 2.1%
2.60% 2026 Notes
1,250 
SOFR + 2.1%
1,250 
SOFR + 2.1%
2.45% 2030 Notes
1,000 
SOFR + 1.3%
1,000 
SOFR + 1.3%
2.30% 2031 Notes
500 
SOFR + 1.1%
500 
SOFR + 1.1%
5.25% 2033 Notes
2,400 
SOFR + 1.8%
1,400 
SOFR + 1.8%
4.663% 2051 Notes
1,500 
SOFR + 4.3%
1,500 
SOFR + 4.3%
Total notional amounts$6,650 $6,650 
N/A = not applicable
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 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)
December 31,December 31,
Consolidated Balance Sheets locations2025202420252024
Current portion of long-term debt$1,273 $1,045 $23 $45 
Long-term debt$5,112 $5,152 $(184)$(388)
____________
(1)Current portion of long-term debt includes $47 million and $56 million of carrying value with discontinued hedging relationships as of December 31, 2025 and 2024, respectively. Long-term debt includes $185 million and $232 million of carrying value with discontinued hedging relationships as of December 31, 2025 and 2024, respectively.
(2)Current portion of long-term debt includes $47 million and $56 million of hedging adjustments on discontinued hedging relationships as of December 31, 2025 and 2024, respectively. Long-term debt includes $85 million and $132 million of hedging adjustments on discontinued hedging relationships as of December 31, 2025 and 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):
Year ended December 31, 2025
Product salesOther income, netInterest expense, net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income$35,148 $2,651 $(2,755)
The effects of cash flow and fair value hedging:
Gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency forward contracts$10 $— $— 
Cross-currency swap contracts$— $221 $— 
(Losses) gains on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)
$— $— $(182)
Derivatives designated as hedging instruments$— $— $238 
Year ended December 31, 2024
Product salesOther income, netInterest expense, net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income$32,026 $506 $(3,155)
The effects of cash flow and fair value hedging:
Gains (losses) on cash flow hedging relationships reclassified out of AOCI:
Foreign currency forward contracts$192 $— $— 
Cross-currency swap contracts$— $(75)$— 
Gains on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)
$— $— $29 
Derivatives designated as hedging instruments$— $— $40 
Year ended December 31, 2023
Product salesOther income, netInterest expense, net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income$26,910 $2,833 $(2,875)
The effects of cash flow and fair value hedging:
Gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency forward contracts$180 $— $— 
Cross-currency swap contracts$— $42 $— 
(Losses) gains on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)
$— $— $(118)
Derivatives designated as hedging instruments$— $— $205 
__________
(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 Consolidated Balance Sheets were as follows (in millions):
 Derivative assetsDerivative liabilities
December 31, 2025Consolidated Balance Sheets locationsFair valuesConsolidated Balance Sheets locationsFair values
Derivatives designated as hedging instruments:
Foreign currency forward contractsOther current assets/ Other noncurrent assets$195 
Accrued liabilities/ Other noncurrent liabilities
$213 
Cross-currency swap contractsOther current assets/ Other noncurrent assets48 
Accrued liabilities/ Other noncurrent liabilities
320 
Interest rate swap contracts
Other current assets/ Other noncurrent assets— 
Accrued liabilities/ Other noncurrent liabilities
293 
Total derivatives designated as hedging instruments
243 826 
Derivatives not designated as hedging instruments:
Foreign currency forward contracts
Other current assets1 Accrued liabilities1 
Total derivatives not designated as hedging instruments
1 1 
Total derivatives$244 $827 
 Derivative assetsDerivative liabilities
December 31, 2024Consolidated Balance Sheets locationsFair valuesConsolidated Balance Sheets locationsFair 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 contracts
Other current assets/ Other noncurrent assets— 
Accrued liabilities/ Other noncurrent liabilities
531 
Total derivatives designated as hedging instruments
420 1,022 
Derivatives not designated as hedging instruments:
Foreign currency forward contracts
Other current assets— Accrued liabilities— 
Total derivatives not designated as hedging instruments
— — 
Total derivatives$420 $1,022 
For additional information, see Note 18, Fair value measurement.