What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 150 added, 72 removed, 439 unchanged (34% of the section changed)

2 unchanged sentences

Condensed Consolidated Statements of Operations

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Dollars in millions, shares in thousands, except per share amounts) 2026 2025 2026 2025

7 unchanged sentences

Net loss on divestiture of business 2 — 23 —

Operating income (loss) 39 ( 56 )

Operating income 77 89 116 33

Other income (expense), net 6 ( 10 ) 16 ( 15 )

13 unchanged sentences

GXO Logistics, Inc.

Condensed Consolidated Statements of Comprehensive Loss

Three Months Ended March 31,

Condensed Consolidated Statements of Comprehensive Income

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

6 unchanged sentences

Other comprehensive income (loss), net of tax ( 3 ) 128 ( 22 ) 197

Comprehensive loss, net of tax ( 14 ) ( 26 )

Comprehensive income, net of tax 24 156 10 130

Comprehensive income attributable to NCI — 5 3 7

Comprehensive loss attributable to GXO $ ( 17 ) $ ( 28 )

Comprehensive income attributable to GXO $ 24 $ 151 $ 7 $ 123

See accompanying Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

Condensed Consolidated Balance Sheets

March 31, December 31,

June 30, December 31,

(Dollars in millions, shares in thousands, except per share amounts) 2026 2025

43 unchanged sentences

Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(In millions) 2026 2025

5 unchanged sentences

Deferred tax benefit

Other ( 8 ) 7

Changes in operating assets and liabilities

9 unchanged sentences

Cash flows from financing activities:

Common stock repurchased — ( 106 )

Common stock repurchased and excise tax paid ( 18 ) ( 200 )

Net borrowings under revolving credit facilities — 8

Repayments of debt — ( 55 )

Repayments of finance lease obligations ( 25 ) ( 24 )

1 unchanged sentence

Taxes paid related to net share settlement of equity awards ( 17 ) ( 7 )

Net obligations under factoring arrangements ( 10 ) ( 12 )

Net changes in bank overdraft positions 1 64

Other — ( 1 )

5 unchanged sentences

Non-cash financing activities:

Unsettled stock repurchases for which trades occurred $ — $ 4

Excise tax liability related to stock repurchases $ — $ 2

Reconciliation of cash, restricted cash and cash equivalents March 31, 2026 December 31, 2025

Reconciliation of cash, restricted cash and cash equivalents June 30, 2026 December 31, 2025

Cash and cash equivalents $ 769 $ 854

10 unchanged sentences

dollars in millions) Shares Amount Treasury Stock

Balance as of December 31, 2025 114,512 $ 1 $ ( 202 ) $ 2,667 $ 718 $ ( 201 ) $ 2,983 $ 32 $ 3,015

Balance as of March 31, 2026 115,024 $ 1 $ ( 202 ) $ 2,669 $ 722 $ ( 222 ) $ 2,968 $ 35 $ 3,003

Net income — — — — 25 — 25 2 27

3 unchanged sentences

Stock-based compensation — — — 13 — — 13 — 13

Balance as of March 31, 2026 115,024 $ 1 $ ( 202 ) $ 2,669 $ 722 $ ( 222 ) $ 2,968 $ 35 $ 3,003

Common stock repurchased ( 332 ) — ( 16 ) — — — ( 16 ) — ( 16 )

Balance as of June 30, 2026 114,770 $ 1 $ ( 218 ) $ 2,680 $ 747 $ ( 223 ) $ 2,987 $ 35 $ 3,022

Common Stock APIC Retained

10 unchanged sentences

Common stock repurchased ( 332 ) — ( 16 ) — — — ( 16 ) — ( 16 )

Balance as of June 30, 2026 114,770 $ 1 $ ( 218 ) $ 2,680 $ 747 $ ( 223 ) $ 2,987 $ 35 $ 3,022

See accompanying Notes to Condensed Consolidated Financial Statements.

GXO Logistics, Inc.

Condensed Consolidated Statements of Changes in Equity

Common Stock APIC Retained

Earnings AOCIL Equity Before

NCI NCI Total

(Shares in thousands,

dollars in millions) Shares Amount Treasury Stock

Balance as of March 31, 2025 116,955 $ 1 $ ( 111 ) $ 2,635 $ 590 $ ( 245 ) $ 2,870 $ 34 $ 2,904

Net income — — — — 26 — 26 2 28

Other comprehensive income — — — — — 125 125 3 128

Stock-based compensation — — — 11 — — 11 — 11

Vesting of stock compensation awards 125 — — — — — — — —

Tax withholding on vesting of stock-based compensation awards ( 38 ) — — ( 1 ) — — ( 1 ) — ( 1 )

Common stock repurchased ( 2,590 ) — ( 91 ) — — — ( 91 ) — ( 91 )

Dividends to NCI — — — — — — — ( 4 ) ( 4 )

Balance as of June 30, 2025 114,452 $ 1 $ ( 202 ) $ 2,645 $ 616 $ ( 120 ) $ 2,940 $ 35 $ 2,975

Common Stock APIC Retained

Earnings AOCIL Equity Before

NCI NCI Total

(Shares in thousands,

dollars in millions) Shares Amount Treasury Stock

Balance as of December 31, 2024 119,496 $ 1 $ — $ 2,629 $ 686 $ ( 313 ) $ 3,003 $ 32 $ 3,035

Net income (loss) — — — — ( 70 ) — ( 70 ) 3 ( 67 )

Other comprehensive income — — — — — 193 193 4 197

Stock-based compensation — — — 23 — — 23 — 23

Vesting of stock compensation awards 495 — — — — — — — —

Tax withholding on vesting of stock-based compensation awards ( 183 ) — — ( 7 ) — — ( 7 ) — ( 7 )

Common stock repurchased ( 5,356 ) — ( 202 ) — — — ( 202 ) — ( 202 )

Dividends to NCI — — — — — — — ( 4 ) ( 4 )

Balance as of June 30, 2025 114,452 $ 1 $ ( 202 ) $ 2,645 $ 616 $ ( 120 ) $ 2,940 $ 35 $ 2,975

See accompanying Notes to Condensed Consolidated Financial Statements.

15 unchanged sentences

Disaggregation of Income Statement Expenses.

This standard requires all public companies to disclose more detailed information about certain costs and expenses in the notes to the financial statements at interim and annual reporting periods.

This standard requires all public companies to disclose more detailed information about certain costs and expenses in the notes to the financial statements in interim and annual reporting periods.

This standard is effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted.

10 unchanged sentences

Revenue disaggregated by geographical area was as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

4 unchanged sentences

Spain 181 166 343 309

Italy 112 105 221 200

Other 213 202 416 380

2 unchanged sentences

Revenue disaggregated by industry was as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

8 unchanged sentences

The contract asset and contract liability balances from contracts with customers were as follows:

March 31, December 31,

June 30, December 31,

(In millions) 2026 2025

7 unchanged sentences

Total contract liabilities $ 382 $ 380

Revenue recognized included the following:

Three Months Ended March 31,

Contract liabilities represent the Company’s obligation to transfer services to a customer for which the Company has received consideration, or the amount due from a customer before the related services have been transferred.

Revenue recognized included in contract liabilities at the beginning of the period was as follows:

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

Amounts included in the beginning of year contract liability balance

Revenue recognized

$ 17 $ 24 $ 229 $ 221

Segment Information

3 unchanged sentences

The CODM is our Chief Executive Officer, who assesses the Company’s performance and allocates resources.

The CODM evaluates the Company’s performance and allocates resources primarily based on adjusted earnings before interest, taxes, depreciation and amortization, adjusted for transaction and integration costs, restructuring costs and other, regulatory matter, net loss on divestiture of business and unrealized gain/loss on foreign currency contracts (“Adjusted EBITDA”).

The CODM uses Adjusted EBITDA to communicate performance targets to the segment managers, allocate resources to the segments, and to monitor segment performance.

The CODM evaluates the Company’s performance and allocates resources primarily based on adjusted earnings before interest, taxes, depreciation and amortization, adjusted for transaction and integration costs, restructuring costs and other, regulatory matters, net loss on divestiture of business and unrealized gain/loss on foreign currency contracts (“Adjusted EBITDA”).

The CODM uses Adjusted EBITDA to communicate performance targets to the segment managers, to allocate resources to the segments, and to monitor segment performance.

Additionally, the CODM considers the performance of this measure against planned and forecasted amounts to make investing and resource allocation decisions.

The actual results are used in assessing performance of the Company and in establishing management’s compensation.

The actual results are used in assessing the performance of the Company and in establishing management’s compensation.

For disclosure purposes, we aggregate these three operating segments into one reportable segment due to the similar nature of their operations and economic characteristics.

The Company’s segment results were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

2 unchanged sentences

Selling, general and administrative expense (1)

Other income, net (2)(3)

281 257 561 503

Other income (expense), net (2)(3)

( 6 ) 2 ( 12 ) ( 3 )

Segment Adjusted EBITDA $ 233 $ 227 $ 449 $ 405

18 unchanged sentences

Total lease cost recorded in the Condensed Consolidated Statements of Operations was as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

Operating lease cost (1)(2)

$ 226 $ 238 $ 438 $ 444

Finance lease cost:

5 unchanged sentences

Total lease cost (5)

(1) Operating, variable, and short-term lease costs are primarily included in Direct operating expense in the Condensed Consolidated Statements of Operations.

(2) For the three months ended March 31, 2026, the Company recorded a net benefit of $ 26 million from a real estate transaction that resulted in an early termination of a lease.

$ 373 $ 341 $ 709 $ 649

(1) Operating, variable, short-term lease costs are primarily included in Direct operating expense in the Condensed Consolidated Statements of Operations.

(2) For the three and six months ended June 30, 2026, the Company recorded a net benefit of $ 4 million and $ 30 million, respectively, from a real estate transaction that resulted in an early termination of a lease.

(3) Amortization of right-of-use assets is included in Depreciation and amortization in the Condensed Consolidated Statements of Operations.

2 unchanged sentences

The following amounts were recorded in the Condensed Consolidated Balance Sheets related to leases:

March 31, December 31,

June 30, December 31,

(In millions) 2026 2025

9 unchanged sentences

Total finance lease liabilities $ 475 $ 326

Subsequent to the quarter end, the Company entered into a finance lease in the amount of $ 89 million with a commencement date of April 1, 2026.

Supplemental cash flow information related to leases was as follows:

Three Months Ended March 31,

Six Months Ended June 30,

(In millions) 2026 2025

2 unchanged sentences

Finance leases 178 85

The following table presents the changes in Goodwill for the three months ended March 31, 2026:

The following table presents the changes in Goodwill for the six months ended June 30, 2026:

(In millions)

1 unchanged sentence

Impact of foreign exchange translation ( 54 )

Balance as of March 31, 2026

As of March 31, 2026 and December 31, 2025, there was a $ 4 million accumulated goodwill impairment loss.

Balance as of June 30, 2026

Intangible Assets

The following table summarizes identifiable intangible assets subject to amortization:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Gross

7 unchanged sentences

Total $ 1,644 $ ( 805 ) $ 839 $ 1,690 $ ( 781 ) $ 909

Intangible asset amortization expense was $ 29 million and $ 29 million for the three months ended March 31, 2026 and 2025, respectively.

Intangible asset amortization expense was $ 28 million and $ 30 million for the three months ended June 30, 2026 and June 30, 2025, respectively, and $ 57 million and $ 59 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

Debt and Financing Arrangements

The following table summarizes the carrying value of the Company’s debt:

March 31, December 31,

June 30, December 31,

(In millions, except percentages) Rate (1)

14 unchanged sentences

Total Long-term debt $ 2,452 $ 2,619

(1) Interest rate as of March 31, 2026.

(2) Net of unamortized discount and debt issuance costs of $ 5 million and $ 6 million as of March 31, 2026 and December 31, 2025, respectively.

(3) Net of unamortized discount and debt issuance costs of $ 2 million as of March 31, 2026 and December 31, 2025.

(4) Net of unamortized discount and debt issuance costs of $ 9 million as of March 31, 2026 and December 31, 2025.

(5) Net of unamortized discount and debt issuance costs of $ 7 million as of March 31, 2026 and December 31, 2025.

(6) As of March 31, 2026, and December 31, 2025, current debt includes $ 400 million of Unsecured notes due July 2026.

(1) Interest rate as of June 30, 2026.

(2) Net of unamortized discount and debt issuance costs of $ 5 million and $ 6 million as of June 30, 2026 and December 31, 2025, respectively.

(3) Net of unamortized discount and debt issuance costs of $ 2 million as of June 30, 2026 and December 31, 2025.

(4) Net of unamortized discount and debt issuance costs of $ 9 million as of June 30, 2026 and December 31, 2025.

(5) Net of unamortized discount and debt issuance costs of $ 6 million and $ 7 million as of June 30, 2026 and December 31, 2025, respectively.

(6) As of June 2026, current debt includes $ 400 million unsecured notes due in July 2026 and $ 275 million five-year term loan due in May 2027.

As of December 31, 2025, current debt includes $ 400 million unsecured notes due in July 2026.

Repayments of Debt

Upon maturity in July 2026, the Company repaid $ 400 million of unsecured notes using cash on hand.

Revolving Credit Facilities

1 unchanged sentence

The aggregate commitment of all lenders under the Revolving Credit Agreement is equal to $ 800 million, of which $ 100 million is available for the issuance of letters of credit.

As of March 31, 2026, and December 31, 2025, no amounts were outstanding, and letters of credit were $ 7 million and $ 6 million, respectively, under the Revolving Credit Agreement.

As of June 30, 2026 and December 31, 2025, no amounts were outstanding, and letters of credit were $ 7 million and $ 6 million, respectively, under the Revolving Credit Agreement.

Borrowings under revolving credit facilities maturing in three months or less are presented net in the Condensed Consolidated Statement of Cash Flows.

2 unchanged sentences

In addition, the facilities require the Company to maintain a consolidated leverage ratio below a specified maximum.

As of March 31, 2026, the Company complied with the covenants contained in its debt and financing arrangements.

As of June 30, 2026, the Company complied with the covenants contained in its debt and financing arrangements.

Factoring Programs

The Company sells certain of its trade receivables on a non-recourse basis to third-party financial institutions under various factoring agreements.

Information related to the trade receivables sold was as follows:

Three Months Ended March 31,

Information related to the trade receivables sold under the factoring agreements was as follows:

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

1 unchanged sentence

Cash consideration 658 787 1,255 1,385

Net cash provided by (used in) operating cash flows

Fair Value Measurements and Financial Instruments

8 unchanged sentences

The Company bases its fair value estimates on market assumptions and available information.

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and current maturities of long-term debt approximated their fair values as of March 31, 2026 and December 31, 2025, due to their short-term nature.

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and current maturities of long-term debt approximated their fair values as of June 30, 2026 and December 31, 2025, due to their short-term nature.

The fair value of debt was as follows:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Level Fair

12 unchanged sentences

The notional amount and fair value of derivative instruments were as follows:

March 31, 2026 December 31, 2025 Balance Sheet Location

June 30, 2026 December 31, 2025 Balance Sheet Location

(In millions) Notional

11 unchanged sentences

Foreign currency forward contracts 3 — 231 1 Other current liabilities

As of March 31, 2026 and December 31, 2025, the derivatives were classified as Level 2 within the fair value hierarchy.

As of June 30, 2026 and December 31, 2025, the derivatives were classified as Level 2 within the fair value hierarchy.

The derivatives are valued using inputs other than quoted prices such as foreign exchange rates and yield curves.

The effect of hedges on AOCIL and in the Condensed Consolidated Statements of Operations was as follows:

Three Months Ended March 31, 2026 Three Months Ended March 31, 2025

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026

(In millions) Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Gain (Loss) Reclassified from AOCIL into Net Income Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Gain (Loss) Reclassified from AOCIL into Net Income Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing)

4 unchanged sentences

Interest rate swaps (1)

$ — $ — $ — $ ( 1 ) $ — $ —

Fair value hedges

3 unchanged sentences

(2) Amounts reclassified to Net income are reported in Other income, net in the Condensed Consolidated Statements of Operations.

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Net investment hedges

Cross-currency swaps (1)

$ ( 195 ) $ — $ 1 $ ( 271 ) $ ( 3 ) $ 2

Cash flow hedges

Interest rate swaps (1)

( 1 ) — — ( 2 ) — —

(1) Amounts reclassified to Net income are reported in Interest expense, net in the Condensed Consolidated Statements of Operations.

Derivatives Not Designated as Hedges

Gains and losses recognized in Other income (expense), net in the Condensed Consolidated Statements of Operations for foreign currency options and forward contracts were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

3 unchanged sentences

The following table summarizes changes in the restructuring liability, which is included in Accrued expenses and Other long-term liabilities in the Condensed Consolidated Balance Sheets.

(In millions) Severance

(In millions)

Balance as of December 31, 2025

1 unchanged sentence

Payments ( 13 )

Balance as of March 31, 2026

As of March 31, 2026, $ 10 million of the restructuring liability is expected to be paid in the next 12 months.

Balance as of June 30, 2026

As of June 30, 2026, $ 8 million of the restructuring liability is expected to be paid in the next 12 months.

In 2024, the Company completed the acquisition of Wincanton plc (now Wincanton Limited) (the “Wincanton Acquisition”).

3 unchanged sentences

(the “Wincanton Divestment”).

In the fourth quarter of 2025, the Company met the held-for-sale criteria for the anticipated Wincanton Divestment and recorded a $ 37 million write-down loss, including $ 4 million of goodwill, $ 21 million of customer relationships, and $ 12 million fair value adjustment.

In the first quarter of 2026, the Company recorded an additional $ 21 million impairment due to a further reduction in estimated fair value.

Assets and liabilities held for sale were not material as of March 31, 2026, and December 31, 2025, and are included in Other current assets and Other current liabilities, respectively, in the Condensed Consolidated Balance Sheets.

For the three and six months ended June 30, 2026, the Company recorded $ 2 million and $ 23 million, respectively, as an additional impairment due to a further reduction in estimated fair value.

Assets and liabilities held for sale were not material as of June 30, 2026 and December 31, 2025, and are included in Other current assets and Other current liabilities, respectively, in the Condensed Consolidated Balance Sheets.

The Company expects to complete the Wincanton Divestment before the end of the year.

10 unchanged sentences

Retirement Plans were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

3 unchanged sentences

Net periodic pension income (1)

$ 7 $ 4 $ 14 $ 9

(1) Net periodic pension income was recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations.

3 unchanged sentences

Defined contribution plan costs were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

Defined contribution costs (1)

$ 26 $ 23 $ 64 $ 54

(1) Defined contribution plan costs were primarily recorded in Direct operating expense in the Condensed Consolidated Statements of Operations.

Income tax expense for the three months ended March 31, 2026, was $ 12 million compared with $ 2 million for the same period in 2025.

The Company’s effective tax rate for the three months ended March 31, 2026, was an expense on a pre-tax income of 68.9 %, compared to an expense on a pre-tax loss of ( 2.7 )% for the same period in 2025.

The change to the Company’s effective tax rate was primarily driven by an increase in pre-tax income, as well as an increase in unrecognized tax benefits, and a non-deductible fair value adjustment related to the Wincanton Divestment in the current period, and the regulatory matter in the prior period.

Income tax expense for the six months ended June 30, 2026, was $ 33 million compared with $ 17 million for the six months ended June 30, 2025.

The Company’s effective tax rate for the six months ended June 30, 2026 and June 30, 2025, was an expense on pre-tax income of 50.6 % and an expense on pre-tax loss of ( 35.3 )%, respectively.

The change to the Company’s effective tax rate was primarily driven by an increase in pre-tax income, an increase in unrecognized tax benefits for the six months ended June 30, 2026, and a regulatory matter during the six months ended June 30, 2025.

Stockholders’ Equity

Stock Repurchase Plan

In February 2025, the Company’s board of directors authorized and announced the repurchase of up to $ 500 million of its common stock (the “Repurchase Plan”).

The Repurchase Plan permits shares of common stock to be repurchased from time to time in management’s discretion.

In 2025, the Company’s board of directors authorized and announced a repurchase plan for up to $ 500 million of its common stock (the “Repurchase Plan”).

The Repurchase Plan permits shares of common stock to be repurchased from time to time in management’s discretion, through a variety of methods, including a 10b5-1 trading plan, open market purchases, privately negotiated transactions or otherwise.

The timing and number of shares of common stock repurchased will depend on a variety of factors, including price, general business and market conditions, alternative investment opportunities and funding considerations.

The Repurchase Plan does not obligate the Company to repurchase any specific number of shares of common stock and may be suspended or discontinued at any time.

No shares were repurchased during the first quarter of 2026.

As of December 31, 2025, and March 31, 2026, the remaining authorization under the Repurchase Plan was $ 300 million.

The repurchase of shares of the Company’s common stock is recorded as treasury stock within equity and is accounted for under the cost method, inclusive of share repurchase costs and excise tax on share repurchases in excess of issuances.

During the six months ended June 30, 2026 and June 30, 2025, the Company repurchased approximately 332 thousand and 5.4 million shares of its common stock for an aggregate purchase price of $ 16 million and $ 202 million, respectively, including share repurchase costs and excise tax.

As of June 30, 2026 and December 31, 2025, $ 284 million and $ 300 million remained authorized under the Repurchase Plan, respectively.

During July 2026, the Company repurchased an additional 104 thousand shares of its common stock for an aggregate purchase price of $ 5 million, including share repurchase costs.

Accumulated Other Comprehensive Income - Loss

6 unchanged sentences

attributable to

As of December 31, 2025 $ 147 $ ( 164 ) $ 1 $ ( 1 ) $ ( 186 ) $ 2 $ ( 201 )

As of March 31, 2026 $ 92 $ ( 133 ) $ 1 $ — $ ( 182 ) $ — $ ( 222 )

Other comprehensive income (loss) before reclassifications ( 4 ) 6 — ( 3 ) — 2 1

2 unchanged sentences

Other comprehensive income (loss), net of tax ( 3 ) 3 ( 1 ) ( 3 ) 1 2 ( 1 )

As of March 31, 2026 $ 92 $ ( 133 ) $ 1 $ — $ ( 182 ) $ — $ ( 222 )

As of June 30, 2026 $ 89 $ ( 130 ) $ — $ ( 3 ) $ ( 181 ) $ 2 $ ( 223 )

Foreign Currency Adjustment

1 unchanged sentence

Adjustments Net Investment Hedges Cash

Hedges Fair Value

Hedges Defined

5 unchanged sentences

Other comprehensive income (loss), net of tax ( 58 ) 34 ( 1 ) ( 2 ) 5 — ( 22 )

As of June 30, 2026 $ 89 $ ( 130 ) $ — $ ( 3 ) $ ( 181 ) $ 2 $ ( 223 )

Foreign Currency Adjustment

(In millions) Foreign

Adjustments Net Investment Hedges Cash

Hedges Defined

attributable to

As of March 31, 2025 $ ( 64 ) $ ( 26 ) $ 3 $ ( 159 ) $ 1 $ ( 245 )

Other comprehensive income (loss) before reclassifications 288 ( 194 ) ( 1 ) ( 12 ) ( 3 ) 78

Amounts reclassified to net income — ( 1 ) — 2 — 1

Tax amounts ( 1 ) 44 1 2 — 46

Other comprehensive income (loss), net of tax 287 ( 151 ) — ( 8 ) ( 3 ) 125

As of June 30, 2025 $ 223 $ ( 177 ) $ 3 $ ( 167 ) $ ( 2 ) $ ( 120 )

Foreign Currency Adjustment

(In millions) Foreign

Adjustments Net Investment Hedges Cash

Hedges Defined

attributable to

As of December 31, 2024 $ ( 195 ) $ 31 $ 4 $ ( 155 ) $ 2 $ ( 313 )

Other comprehensive income (loss) before reclassifications 419 ( 270 ) ( 2 ) ( 18 ) ( 4 ) 125

Amounts reclassified to net loss — 1 — 3 — 4

Tax amounts ( 1 ) 61 1 3 — 64

Other comprehensive income (loss), net of tax 418 ( 208 ) ( 1 ) ( 12 ) ( 4 ) 193

As of June 30, 2025 $ 223 $ ( 177 ) $ 3 $ ( 167 ) $ ( 2 ) $ ( 120 )

Commitments and Contingencies

13 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements