Financial Instruments and Fair Value Measurements (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Schedule of Fair Value of Derivative Financial Instruments |
The following table presents the fair value of our derivative financial instruments recognized within Other Assets and Other Liabilities in the Consolidated Balance Sheets (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Asset |
|
|
Liability |
|
|
Asset |
|
|
Liability |
|
Undesignated derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
Forwards |
|
|
|
|
|
|
|
|
|
|
|
|
Brazilian real |
|
$ |
- |
|
|
$ |
1,037 |
|
|
$ |
- |
|
|
$ |
394 |
|
British pound sterling |
|
|
1,923 |
|
|
|
7,623 |
|
|
|
164 |
|
|
|
11,688 |
|
Canadian dollar |
|
|
8,344 |
|
|
|
5 |
|
|
|
5,680 |
|
|
|
214 |
|
Euro |
|
|
5,846 |
|
|
|
2,418 |
|
|
|
1,660 |
|
|
|
17,571 |
|
Japanese yen |
|
|
44,248 |
|
|
|
- |
|
|
|
54,147 |
|
|
|
22 |
|
Swedish krona |
|
|
503 |
|
|
|
1,435 |
|
|
|
198 |
|
|
|
5,352 |
|
Options |
|
|
|
|
|
|
|
|
|
|
|
|
Mexican peso |
|
|
1,623 |
|
|
|
- |
|
|
|
14,733 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Designated derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment hedges |
|
|
|
|
|
|
|
|
|
|
|
|
British pound sterling |
|
|
9,247 |
|
|
|
- |
|
|
|
841 |
|
|
|
4,279 |
|
Canadian dollar |
|
|
- |
|
|
|
- |
|
|
|
1,866 |
|
|
|
968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
Euro |
|
|
14,600 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Japanese yen |
|
|
2,086 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
U.S. dollar |
|
|
- |
|
|
|
- |
|
|
|
1,480 |
|
|
|
- |
|
Total fair value of derivatives |
|
$ |
88,420 |
|
|
$ |
12,518 |
|
|
$ |
80,769 |
|
|
$ |
40,488 |
|
|
| Summary of Undesignated Financial Instruments Exercised and Realized and Unrealized Gains (Losses) in Foreign Currency, Derivative and Other Gains and Other Income, Net |
The following table summarizes the undesignated derivative financial instruments exercised and associated realized and unrealized gains (losses), respectively, in Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net in the Consolidated Statements of Income (in millions, except for number of exercised contracts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Exercised contracts |
|
|
27 |
|
|
|
31 |
|
|
|
106 |
|
|
|
83 |
|
Realized gains (losses) on the matured, expired or settled contracts |
|
$ |
5 |
|
|
$ |
3 |
|
|
$ |
25 |
|
|
$ |
16 |
|
Unrealized gains (losses) on the change in fair value of outstanding contracts |
|
$ |
(10 |
) |
|
$ |
34 |
|
|
$ |
10 |
|
|
$ |
(97 |
) |
|
| Summary of Unrealized Gains (Losses) in Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net on Remeasurement of Unhedged Portion of Foreign Denominated Debt and Accrued Interest |
The following table summarizes the unrealized gains (losses) in Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net in the Consolidated Statements of Income on the remeasurement of the unhedged portion of our foreign denominated debt and accrued interest (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Unrealized gains (losses) on the unhedged portion |
|
$ |
(4 |
) |
|
$ |
2 |
|
|
$ |
(10 |
) |
|
$ |
(69 |
) |
|
| Summary of Changes in AOCI/L |
The following tables present these changes in AOCI/L (in thousands): Three Months Ended September 30, 2026 and 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
on CFHs (1) |
|
|
Our share of derivatives from unconsolidated entities |
|
|
Derivative NIHs |
|
|
Debt designated as nonderivative NIHs (2) |
|
|
CTA |
|
|
Total AOCI/L |
|
Balance at
July 1, 2026 |
|
$ |
(7,290 |
) |
|
$ |
21,281 |
|
|
$ |
319,712 |
|
|
$ |
235,523 |
|
|
$ |
(966,943 |
) |
|
$ |
(397,717 |
) |
Other comprehensive
income (loss), net |
|
|
17,623 |
|
|
|
2,710 |
|
|
|
(233 |
) |
|
|
(18,267 |
) |
|
|
(16,789 |
) |
|
|
(14,956 |
) |
Balance at
September 30, 2026 |
|
$ |
10,333 |
|
|
$ |
23,991 |
|
|
$ |
319,479 |
|
|
$ |
217,256 |
|
|
$ |
(983,732 |
) |
|
$ |
(412,673 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
on CFHs |
|
|
Our share of derivatives from unconsolidated entities |
|
|
Derivative NIHs |
|
|
Debt designated as nonderivative NIHs (2) |
|
|
CTA |
|
|
Total AOCI/L |
|
Balance at
July 1, 2025 |
|
$ |
(10,379 |
) |
|
$ |
12,806 |
|
|
$ |
295,707 |
|
|
$ |
99,385 |
|
|
$ |
(1,163,026 |
) |
|
$ |
(765,507 |
) |
Other comprehensive
income (loss), net |
|
|
848 |
|
|
|
2,735 |
|
|
|
17,627 |
|
|
|
53,361 |
|
|
|
(45,164 |
) |
|
|
29,407 |
|
Balance at
September 30, 2025 |
|
$ |
(9,531 |
) |
|
$ |
15,541 |
|
|
$ |
313,334 |
|
|
$ |
152,746 |
|
|
$ |
(1,208,190 |
) |
|
$ |
(736,100 |
) |
Nine Months Ended September 30, 2026 and 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) on CFHs (1) |
|
|
Our share of derivatives from unconsolidated entities |
|
|
Derivative NIHs |
|
|
Debt designated as nonderivative NIHs (2) |
|
|
CTA |
|
|
Total AOCI/L |
|
Balance at
January 1, 2026 |
|
$ |
(9,332 |
) |
|
$ |
18,532 |
|
|
$ |
310,320 |
|
|
$ |
106,834 |
|
|
$ |
(1,102,630 |
) |
|
$ |
(676,276 |
) |
Other comprehensive
income (loss), net |
|
|
19,665 |
|
|
|
5,459 |
|
|
|
9,159 |
|
|
|
110,422 |
|
|
|
118,898 |
|
|
|
263,603 |
|
Balance at
September 30, 2026 |
|
$ |
10,333 |
|
|
$ |
23,991 |
|
|
$ |
319,479 |
|
|
$ |
217,256 |
|
|
$ |
(983,732 |
) |
|
$ |
(412,673 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) on CFHs |
|
|
Our share of derivatives from unconsolidated entities |
|
|
Derivative NIHs |
|
|
Debt designated as nonderivative NIHs (2) |
|
|
CTA |
|
|
Total AOCI/L |
|
Balance at
January 1, 2025 |
|
$ |
(11,659 |
) |
|
$ |
12,652 |
|
|
$ |
341,852 |
|
|
$ |
327,897 |
|
|
$ |
(790,957 |
) |
|
$ |
(120,215 |
) |
Other comprehensive
income (loss), net |
|
|
2,128 |
|
|
|
2,889 |
|
|
|
(28,518 |
) |
|
|
(175,151 |
) |
|
|
(417,233 |
) |
|
|
(615,885 |
) |
Balance at
September 30, 2025 |
|
$ |
(9,531 |
) |
|
$ |
15,541 |
|
|
$ |
313,334 |
|
|
$ |
152,746 |
|
|
$ |
(1,208,190 |
) |
|
$ |
(736,100 |
) |
(1)We estimate that less than $1 million of expense will be reclassified to Interest Expense in the Consolidated Statements of Income over the next twelve months from September 30, 2026, due to the amortization of settled derivatives designated as cash flow hedges. (2)Reclassification of amounts out of AOCI/L due to the remeasurement of the unhedged portion of our foreign denominated debt and accrued interest is included within other comprehensive income (loss), net.
|
| Carrying Amounts and Estimated Fair Values of Debt |
The following table reflects the carrying amounts and estimated fair values of our debt (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Carrying Value |
|
|
Fair Value |
|
|
Carrying Value |
|
|
Fair Value |
|
Credit facilities and commercial paper |
|
$ |
785,686 |
|
|
$ |
785,686 |
|
|
$ |
44,679 |
|
|
$ |
44,679 |
|
Senior notes |
|
|
34,002,443 |
|
|
|
30,540,954 |
|
|
|
32,887,971 |
|
|
|
30,950,062 |
|
Term loans and unsecured other |
|
|
1,821,219 |
|
|
|
1,750,061 |
|
|
|
1,908,723 |
|
|
|
1,862,065 |
|
Secured mortgage |
|
|
223,134 |
|
|
|
204,327 |
|
|
|
195,700 |
|
|
|
185,965 |
|
Total |
|
$ |
36,832,482 |
|
|
$ |
33,281,028 |
|
|
$ |
35,037,073 |
|
|
$ |
33,042,771 |
|
|
| Undesignated Derivatives [Member] |
|
| Foreign Currency Contracts Activity |
The following table summarizes the activity of our undesignated foreign currency contracts for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
|
CAD |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Other |
|
|
Total |
|
|
CAD |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Other |
|
|
Total |
|
Notional amounts at January 1 ($) |
|
296 |
|
|
|
587 |
|
|
|
385 |
|
|
|
335 |
|
|
|
(202 |
) |
|
|
1,401 |
|
|
|
254 |
|
|
|
526 |
|
|
|
386 |
|
|
|
312 |
|
|
|
(27 |
) |
|
|
1,451 |
|
New contracts ($) |
|
9 |
|
|
|
21 |
|
|
|
254 |
|
|
|
12 |
|
|
|
31 |
|
|
|
327 |
|
|
|
111 |
|
|
|
186 |
|
|
|
100 |
|
|
|
68 |
|
|
|
18 |
|
|
|
483 |
|
Matured, expired or settled contracts ($) |
|
(85 |
) |
|
|
(132 |
) |
|
|
(81 |
) |
|
|
(62 |
) |
|
|
116 |
|
|
|
(244 |
) |
|
|
(49 |
) |
|
|
(98 |
) |
|
|
(66 |
) |
|
|
(59 |
) |
|
|
(19 |
) |
|
|
(291 |
) |
Notional amounts at September 30 ($) |
|
220 |
|
|
|
476 |
|
|
|
558 |
|
|
|
285 |
|
|
|
(55 |
) |
|
|
1,484 |
|
|
|
316 |
|
|
|
614 |
|
|
|
420 |
|
|
|
321 |
|
|
|
(28 |
) |
|
|
1,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average forward rate at September 30 |
|
1.33 |
|
|
|
1.18 |
|
|
|
1.31 |
|
|
|
126.65 |
|
|
|
|
|
|
|
|
|
1.33 |
|
|
|
1.16 |
|
|
|
1.29 |
|
|
|
123.15 |
|
|
|
|
|
|
|
Active contracts at September 30 |
|
88 |
|
|
|
109 |
|
|
|
130 |
|
|
|
92 |
|
|
|
|
|
|
|
|
|
120 |
|
|
|
127 |
|
|
|
108 |
|
|
|
93 |
|
|
|
|
|
|
|
|
| Designated As Hedging Instrument [Member] |
|
| Foreign Currency Contracts Activity |
The following table summarizes the activity of our foreign currency contracts designated as NIHs for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
|
|
CAD |
|
|
GBP |
|
|
Total |
|
|
CAD |
|
|
GBP |
|
|
Total |
|
Notional amounts at January 1 ($) |
|
|
200 |
|
|
|
683 |
|
|
|
883 |
|
|
|
163 |
|
|
|
432 |
|
|
|
595 |
|
New contracts ($) |
|
|
100 |
|
|
|
776 |
|
|
|
876 |
|
|
|
200 |
|
|
|
549 |
|
|
|
749 |
|
Matured, expired or settled contracts ($) |
|
|
(300 |
) |
|
|
(773 |
) |
|
|
(1,073 |
) |
|
|
(163 |
) |
|
|
(305 |
) |
|
|
(468 |
) |
Notional amounts at September 30 ($) |
|
|
- |
|
|
|
686 |
|
|
|
686 |
|
|
|
200 |
|
|
|
676 |
|
|
|
876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average forward rate at September 30 |
|
|
- |
|
|
|
1.35 |
|
|
|
|
|
|
1.36 |
|
|
|
1.33 |
|
|
|
|
Active contracts at September 30 |
|
|
- |
|
|
|
6 |
|
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
|
| Summary of Activity in Interest Rate Contracts |
The following table summarizes the activity of our interest rate contracts designated as CFHs for the nine months ended September 30 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
|
CAD |
|
|
EUR |
|
|
JPY |
|
|
USD |
|
|
Total |
|
|
CAD |
|
|
EUR |
|
|
USD |
|
|
Total |
|
Notional amounts at January 1 ($) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
425 |
|
|
|
425 |
|
|
|
- |
|
|
|
- |
|
|
|
280 |
|
|
|
280 |
|
New contracts ($) |
|
254 |
|
|
|
418 |
|
|
|
285 |
|
|
|
725 |
|
|
|
1,682 |
|
|
|
139 |
|
|
|
543 |
|
|
|
1,250 |
|
|
|
1,932 |
|
Matured, expired or settled contracts ($) |
|
(254 |
) |
|
|
(90 |
) |
|
|
- |
|
|
|
(1,150 |
) |
|
|
(1,494 |
) |
|
|
(139 |
) |
|
|
(543 |
) |
|
|
(1,155 |
) |
|
|
(1,837 |
) |
Notional amounts at September 30 ($) |
|
- |
|
|
|
328 |
|
|
|
285 |
|
|
|
- |
|
|
|
613 |
|
|
|
- |
|
|
|
- |
|
|
|
375 |
|
|
|
375 |
|
|
| Designated As Hedging Instrument [Member] | Net Investment Hedging [Member] |
|
| Summary of Debt and Accrued Interest, Designated as Nonderivative Financial Instrument |
The following table summarizes our debt and accrued interest, designated as a hedge of our net investment in international subsidiaries at the quarter ended (in millions):
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
British pound sterling |
|
$ |
1,871 |
|
|
$ |
1,837 |
|
Canadian dollar |
|
$ |
2,410 |
|
|
$ |
1,793 |
|
Chinese renminbi |
|
$ |
239 |
|
|
$ |
- |
|
|