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Derivative Financial Instruments and Hedging Activities | 3 Months Ended
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Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company uses derivative and non-derivative instruments to manage foreign exchange risk related to its ongoing business operations with the primary objective of reducing earnings and cash flow volatility associated with fluctuations in foreign exchange rates. Notional Amount of Derivative Contracts The net notional amounts of the Company’s outstanding derivative instruments were as follows:
| As of
| March 31, 2026 |  | December 31, 2025
| (in thousands)
Derivatives designated as hedging instruments: |  |  |
Foreign exchange contracts |  |  |
Cash flow hedges | $ | 20,900,610 |  |  | $ | 21,066,760 |
Fair value hedges | 2,931,522 |  |  | 2,884,792 |
Derivatives not designated as hedging instruments: |  |  |
Foreign exchange contracts | 1,481,615 |  |  | 1,555,502 |
Total | $ | 25,313,747 |  |  | $ | 25,507,054 |
As of both March 31, 2026 and December 31, 2025, approximately $1.9 billion of the Company’s Euro-denominated Senior Notes were designated as hedges of the foreign exchange risk of the Company’s net investment in certain foreign subsidiaries. As of both March 31, 2026 and December 31, 2025, the carrying amount of the Company's Euro-denominated Senior Notes (included in “Long-term debt” on the Company's Consolidated Balance Sheets), which were designated as the hedged items in fair value hedges, was approximately $2.9 billion. See Note 7 Debt for further information on the Company’s debt obligations. Fair Value of Derivative Contracts The fair value of the Company’s outstanding derivative instruments was as follows:
| As of March 31, 2026
| Derivative Assets |  | Derivative Liabilities
| Other current assets |  | Other non-current assets |  | Accrued expenses and other liabilities |  | Other non-current liabilities
| (in thousands)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange contracts | $ | 254,144 |  |  | $ | 244,483 |  |  | $ | 344,764 |  |  | $ | 106,143 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange contracts | 32,061 |  |  | — |  |  | 15,325 |  |  | — |
Total | $ | 286,205 |  |  | $ | 244,483 |  |  | $ | 360,089 |  |  | $ | 106,143 |
| As of December 31, 2025
| Derivative Assets |  | Derivative Liabilities
| Other current assets |  | Other non-current assets |  | Accrued expenses and other liabilities |  | Other non-current liabilities
| (in thousands)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange contracts | $ | 192,828 |  |  | $ | 88,985 |  |  | $ | 426,341 |  |  | $ | 214,574 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange contracts | 3,463 |  |  | — |  |  | 11,704 |  |  | — |
Total | $ | 196,291 |  |  | $ | 88,985 |  |  | $ | 438,045 |  |  | $ | 214,574 |
The Company classifies derivative instruments in the Level 2 category within the fair value hierarchy. These instruments are valued using industry standard valuation models that use observable inputs such as interest rate yield curves, and forward and spot prices for currencies. As of March 31, 2026, the pre-tax net accumulated gain on our foreign currency cash flow hedges included in accumulated other comprehensive income (“AOCI”) on the Consolidated Balance Sheets expected to be recognized in earnings within the next 12 months is $23 million. Master Netting Agreements In order to mitigate counterparty credit risk, the Company enters into master netting agreements with its counterparties for its foreign currency exchange contracts, which permit the parties to settle amounts on a net basis under certain conditions. The Company has elected to present its derivative assets and liabilities on a gross basis on its Consolidated Balance Sheets. The Company also enters into collateral security arrangements with its counterparties that require the parties to post cash collateral when certain contractual thresholds are met. Cash collateral received is presented in “Accrued expenses and other liabilities” representing the Company’s obligation to return counterparty cash collateral. Cash collateral posted is presented in “Other current assets,” representing the Company’s right to reclaim the cash collateral. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted or received. The potential offsetting effect to the Company’s derivative assets and liabilities under its master netting agreements and collateral security agreements were as follows:
| As of March 31, 2026
|  |  |  |  |  |  | Gross Amount Not Offset in the Consolidated Balance Sheets |  |
| Gross Amount Recognized in the Consolidated Balance Sheets |  | Gross Amount Offset in the Consolidated Balance Sheets |  | Net Amount Presented in the Consolidated Balance Sheets |  | Financial Instruments |  | Collateral Received and Posted |  | Net Amount
| (in thousands)
Derivative assets | $ | 530,688 |  |  | $ | — |  |  | $ | 530,688 |  |  | $ | (413,631) |  |  | $ | — |  |  | $ | 117,057 |
Derivative liabilities | 466,232 |  |  | — |  |  | 466,232 |  |  | (413,631) |  |  | — |  |  | 52,601 |
| As of December 31, 2025
|  |  |  |  |  |  | Gross Amount Not Offset in the Consolidated Balance Sheets |  |
| Gross Amount Recognized in the Consolidated Balance Sheets |  | Gross Amount Offset in the Consolidated Balance Sheets |  | Net Amount Presented in the Consolidated Balance Sheets |  | Financial Instruments |  | Collateral Received and Posted |  | Net Amount
| (in thousands)
Derivative assets | $ | 285,276 |  |  | $ | — |  |  | $ | 285,276 |  |  | $ | (282,469) |  |  | $ | — |  |  | $ | 2,807 |
Derivative liabilities | 652,619 |  |  | — |  |  | 652,619 |  |  | (282,469) |  |  | — |  |  | 370,150 |
Effect of Derivative and Non-Derivative Instruments on Consolidated Financial Statements The pre-tax gains (losses) on the Company’s cash flow hedges, fair value hedges, and net investment hedges recognized in AOCI were as follows:
| Three Months Ended |  |
| March 31, 2026 |  | March 31, 2025 |  |  |  |
| (in thousands)
Cash flow hedges: |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |
Amount included in the assessment of effectiveness | $ | 385,230 |  |  | $ | (486,967) |  |  |  |  |
Fair value hedges: |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |
Amount excluded from the assessment of effectiveness | (12,094) |  |  | (18,031) |  |  |  |  |
Net investment hedges: |  |  |  |  |  |  |
Foreign currency-denominated debt |  |  |  |  |  |  |
Amount included in the assessment of effectiveness | 36,503 |  |  | (44,600) |  |  |  |  |
Total | $ | 409,639 |  |  | $ | (549,598) |  |  |  |  |
The gains (losses) on hedged items and derivative instruments recognized in the Consolidated Statement of Operations were as follows:
| Three Months Ended
| March 31, 2026 |  | March 31, 2025
| Revenues |  | Cost of Revenues |  | Interest and Other Income (Expense) |  | Revenues |  | Cost of Revenues |  | Interest and Other Income (Expense)
| (in thousands)
Total amounts presented in the Consolidated Statements of Operations | $ | 12,249,757 |  |  | $ | 5,888,238 |  |  | $ | 2,852,166 |  |  | $ | 10,542,801 |  |  | $ | 5,263,147 |  |  | $ | 50,899 |
Gains (losses) on derivatives in cash flow hedging relationship |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from AOCI | (132,517) |  |  | 904 |  |  | — |  |  | 164,796 |  |  | (2,339) |  |  | — |
Gains (losses) on derivatives in fair value hedging relationship |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |
Hedged items | — |  |  | — |  |  | 55,901 |  |  | — |  |  | — |  |  | (153,825) |
Derivatives designated as hedging instruments | — |  |  | — |  |  | (59,085) |  |  | — |  |  | — |  |  | 157,435 |
Amount excluded from assessment of effectiveness and recognized in earnings based on amortization approach | — |  |  | — |  |  | (13,263) |  |  | — |  |  | — |  |  | (14,569) |
Gains (losses) on derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | — |  |  | — |  |  | 8,135 |  |  | — |  |  | — |  |  | (20,950) |

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