GE · 10-Q · 2026Q2 · Full report
Derivatives, Hedging and FX Exposure
GENERAL ELECTRIC CO · 2026-07-16 · Importance 37 · Surprise 6
GE uses foreign currency forwards and cross-currency interest rate swaps designated as cash flow hedges and net investment hedges to manage foreign exchange exposure and reduce the effects of currency movements on earnings. The filing discloses gross derivative notionals of $10,419 million (fair value derivatives table) and a carrying value of foreign currency debt designated as net investment hedges of $4,762 million as of June 30, 2026 (versus $4,958 million at December 31, 2025). Interest rate swaps are also used in fair value hedges and cumulative hedging adjustments have been reflected in long-term borrowings. The company states derivatives are used solely for managing risks (not speculative purposes) and that most derivative-related gains/losses are offset by remeasurement of underlying exposures through earnings.