v3.25.4
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Automotive The following table presents the gross fair value amounts of derivative financial instruments and the associated notional amounts in our automotive operations:
Fair Value LevelDecember 31, 2025December 31, 2024
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Derivatives designated as hedges(a)
Fair value hedges
Interest rate swaps2$5,825 $97 $2 $4,405 $13 $61 
Cash flow hedges(b)
Foreign exchange contracts27,176 23 101 6,555 190 124 
Commodity contracts21,243 366 3 2,323 24 103 
Total derivative financial instruments$14,244 $486 $106 $13,283 $227 $288 
__________
(a)The gains/losses included in our consolidated income statements and consolidated statements of comprehensive income for the years ended December 31, 2025, 2024, and 2023 were insignificant, unless otherwise noted. Amounts accrued for interest payments in a net receivable position are included in Other assets. Amounts accrued for interest payments in a net payable position are included in Other liabilities.
(b)The effect of cash flow hedges recognized into Accumulated other comprehensive income (loss) on the consolidated statements of comprehensive income included a gain of $385 million for the year ended December 31, 2025 and an insignificant amount for the years ended 2024 and 2023. The effect of cash flow hedges reclassified from Accumulated other comprehensive income (loss) to the consolidated income statements were insignificant for the years ended December 31, 2025, 2024, and 2023. We expect to recognize $367 million in revenues and costs of goods sold over the next 12 months related to amounts included in Accumulated other comprehensive loss.

The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves.

The following amounts were recorded in the consolidated balance sheets related to items designated and qualifying as hedged items in fair value hedging relationships:
December 31, 2025December 31, 2024
Carrying Amount of Hedged ItemsCumulative Amount of Fair Value Hedging AdjustmentsCarrying Amount of Hedged ItemsCumulative Amount of Fair Value Hedging Adjustments
Short-term unsecured debt$— $— $— $— 
Long-term unsecured debt5,825 (95)4,405 48 
Automotive unsecured debt$5,825 $(95)$4,405 $48 
The following table presents the gross fair value amounts of GM Financial's derivative financial instruments and the associated notional amounts:
Fair Value LevelDecember 31, 2025December 31, 2024
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Derivatives designated as hedges(a)
Fair value hedges
Interest rate swaps(b)2$33,880 $88 $457 $36,145 $32 $621 
 Cash flow hedges
Interest rate swaps22,302 18 23 1,873 35 4 
Foreign currency swaps(c)29,226 580 58 8,363 80 508 
Derivatives not designated as hedges(a)
Interest rate contracts2122,505 421 637 123,346 833 1,294 
Total derivative financial instruments(d)$167,913 $1,107 $1,175 $169,727 $981 $2,427 
__________
(a)The gains/losses included in our consolidated income statements and statements of comprehensive income for the years ended December 31, 2025, 2024, and 2023 were insignificant, unless otherwise noted. Amounts accrued for interest payments in a net receivable position are included in Other assets. Amounts accrued for interest payments in a net payable position are included in Other liabilities.
(b)The effect of fair value hedges in the consolidated income statements include losses of $210 million, $200 million, and an insignificant amount for the years ended December 31, 2025, 2024, and 2023.
(c)The effect of foreign currency cash flow hedges in the consolidated statements of comprehensive income include gains of $538 million, losses of $375 million, and an insignificant amount recognized in Accumulated other comprehensive loss and gains of $649 million, losses of $422 million, and an insignificant amount reclassified from Accumulated other comprehensive loss into income for the years ended December 31, 2025, 2024, and 2023. All amounts reclassified from Accumulated other comprehensive loss were recorded to GM Financial interest, operating, and other expenses in the consolidated income statements. During the next 12 months, we expect an insignificant amount of gains will be reclassified into pre-tax earnings from foreign currency cash flow hedges designated for hedge accounting.
(d)The fair value of derivative instruments that are classified as assets or liabilities available for offset was $520 million and $693 million at December 31, 2025 and 2024. GM Financial held an insignificant amount and $190 million of collateral from counterparties available for netting against GM Financial's asset positions, and posted $615 million and $1.2 billion of collateral to counterparties available for netting against GM Financial's liability positions at December 31, 2025 and 2024.

The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves.

The following amounts were recorded in the consolidated balance sheets related to items designated and qualifying as hedged items in fair value hedging relationships:
December 31, 2025December 31, 2024
Carrying Amount of Hedged ItemsCumulative Amount of Fair Value Hedging Adjustments(a)Carrying Amount of Hedged ItemsCumulative Amount of Fair Value Hedging Adjustments(a)
Short-term unsecured debt$4,633 $17 $6,406 $(6)
Long-term unsecured debt30,554 676 30,258 1,287 
GM Financial unsecured debt$35,187 $693 $36,664 $1,281 
__________
(a)Includes $428 million and $719 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at December 31, 2025 and 2024.