v3.26.1
Derivatives and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments in statement of financial position, fair value
The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31, 2026 and December 31, 2025:
Table 8.1: Fair Value of Derivative Assets and Liabilities
Other Assets Fair ValueOther Liabilities Fair Value
(Millions)2026202520262025
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)
$— $— $— $4 
Net investment hedges - Foreign exchange contracts223 26 56 699 
Total derivatives designated as hedging instruments223 26 56 702 
Derivatives not designated as hedging instruments:
Foreign exchange contracts and other
265 148 105 418 
Total derivatives, gross488 174 161 1,120 
Derivative asset and derivative liability netting (b)
(143)(151)(143)(151)
Cash collateral netting (c)
(37)(1)— (9)
Total derivatives, net$309 $22 $17 $961 
(a)For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
(b)Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
(c)Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.
Effect of fair value hedges on results of operations
The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three months ended March 31, 2026 and 2025:
Table 8.2: Gains and Losses associated with Fair Value Hedges on Fixed-rate Long Term Debt
Gains (losses)
Three Months Ended
March 31,
(Millions)20262025
Fixed-rate long-term debt $222 $(263)
Derivatives designated as hedging instruments(222)263 
Total$— $—