Derivatives & hedging (ASC 815): disclosure examples

same expiration dates and notional amounts but with different strike prices. These foreign currency hedge contracts are designated as cash flow hedges and are carried on our balance sheet at fair value, with the effective portion of the contracts’ gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in earnings in the same period the hedged revenue and/or expense is recognized. The unrealized loss of our outstanding forward and option contracts that are designated as cash flow hedges, as of June 28, 2026, and the change in fair value of these cash flow hedges assuming a hypothetical foreign currency exchange rate movement of plus or minus 10 percent and plus or minus 15 percent are not significant.

We also enter into foreign currency forward contracts to offset the gains and losses generated by the remeasurement of certain non-U.S.-dollar denominated monetary assets and liabilities, primarily cash, third-party accounts receivable, accounts payable, and intercompany receivables and payables. The change in fair value of these balance sheet derivative instruments is recorded into earnings as a component of other income (expense), net, and offsets the change in fair value of the foreign currency denominated monetary assets and liabilities also recorded in other income (expense), net, assuming the derivative instruments fully cover the value of the foreign currency denominated monetary assets and liabilities. The unrealized loss of our balance sheet derivative instruments as of June 28, 2026, and the change in fair value of these contacts, assuming a hypothetical foreign currency exchange rate movement of plus or minus 10 percent and plus or minus 15 percent are not significant. These changes in fair values would be offset in other income (expense), net, by corresponding changes remeasurement gains or losses on foreign currency denominated monetary assets and liabilities, assuming the derivative instruments fully cover the value of the foreign currency denominated monetary assets and liabilities.

Item 8. Financial Statements and Supplementary Data

There were no retrospective changes to the Consolidated Statements of Operation for any quarters in the two most recent fiscal years that would require disclosure under Item 302 of Regulation S-K.

Index to Consolidated Financial Statements

We use derivative instruments to hedge certain foreign currency exposures. We use forward contracts and purchased options designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in our forecasted transactions denominated in currencies other than the U.S. Dollar. In addition, we primarily use forward contracts and may use purchased options to hedge monetary assets and liabilities denominated in a foreign currency. See Note 8 of the Notes to the Consolidated Financial Statements included in this report for additional information about our use of derivative instruments.

We are exposed to interest rate risk related to our variable-rate debt portfolio. In the normal course of business we follow established policies and procedures to manage this risk, including monitoring of our asset and liability mix and the use of derivative instruments. As a result, we do not anticipate any material losses from interest rate risk.

Summarized Guarantor Financial Information

The Company’s outstanding senior notes (“Senior Notes”) are registered, unsecured, and issued by Dell International L.L.C. and EMC Corporation (the “Issuers”), both of which are wholly-owned subsidiaries of Dell Technologies Inc. The Senior Notes are guaranteed on a joint and several unsecured basis by Dell Technologies Inc. and its wholly-owned subsidiaries, Denali Intermediate, Inc. and Dell Inc. (collectively, the “Guarantors”).

Basis of Preparation of the Summarized Financial Information — The tables below are summarized financial information provided in conformity with Rule 13-01 of the SEC’s Regulation S-X. The summarized financial information of the Issuers and Guarantors (collectively, the “Obligor Group”) is presented on a combined basis, excluding intercompany balances and transactions between entities in the Obligor Group. The Obligor Group’s investment balances in subsidiaries of Dell Technologies Inc. that are not part of the Obligor Group (the “Non-Obligor Subsidiaries”) have been excluded. The Obligor Group’s amounts due from, amounts due to, and transactions with Non-Obligor Subsidiaries have been presented separately.

The following table presents summarized results of operations information for the Obligor Group for the period indicated:

We enter into foreign exchange forward contracts to mitigate fluctuations in forecasted U.S. dollar-equivalent revenues from changes in foreign currency exchange rates. These contracts may reduce, but do not entirely eliminate, the effect of foreign currency exchange fluctuations, and we may choose not to hedge certain exposures. We designate these contracts as cash flow hedges of forecasted foreign currency revenue and initially record the gains or losses on these derivative instruments as a component of accumulated other comprehensive income (“AOCI”) within Stockholders' equity in the Consolidated Balance Sheets and reclassify the amounts into “Revenues” on the Consolidated Statements of Operations in the same period the forecasted transaction affects earnings. If the U.S dollar weakened by 10% as of December 31, 2025 and December 31, 2024, the amount recorded in AOCI related to our foreign exchange contracts, before taxes, would have been approximately $2,296 million and $1,850 million lower, respectively. This adverse change in AOCI would be expected to offset a corresponding favorable foreign currency change in the underlying forecasted revenues when recognized in earnings.

We enter into foreign exchange forward contracts to mitigate fluctuations in forecasted and firmly committed U.S. dollar-equivalent transactions related to the licensing and production of content assets from changes in foreign currency exchange rates. These contracts may reduce, but do not entirely eliminate, the effect of foreign currency exchange fluctuations, and we may choose not to hedge certain exposures. We designate these contracts as cash flow hedges and initially record the gains or losses on these derivative instruments as a component of AOCI and reclassify the amounts into “Cost of Revenues” to offset the hedged exposures as they affect earnings, which occurs as the underlying hedged content assets are amortized. If the U.S dollar strengthened by 10% as of December 31, 2025 and December 31, 2024, the amount recorded in AOCI related to our foreign exchange contracts, before taxes, would have been approximately $237 million and $187 million lower, respectively. This adverse change in AOCI would be expected to offset a corresponding favorable foreign currency change in the underlying exposures when recognized in earnings.

CONSOLIDATED AND COMBINED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(In millions)	2025	2024	2023
Net income (loss) attributable to GE Vernova	$ 4,884	$ 1,552	$ ( 438 )
Net loss (income) attributable to noncontrolling interests	4	( 7 )	36
Net income (loss)	$ 4,879	$ 1,559	$ ( 474 )
Other comprehensive income (loss):
Currency translation adjustments – net of taxes	473	( 397 )	114
Benefit plans – net of taxes	( 187 )	( 730 )	640
Cash flow hedges – net of taxes	67	6	69
Other comprehensive income (loss)	$ 354	$ ( 1,120 )	$ 823
Comprehensive income (loss)	$ 5,233	$ 439	$ 349
Comprehensive loss (income) attributable to noncontrolling interests	2	( 11 )	34
Comprehensive income (loss) attributable to GE Vernova	$ 5,235	$ 428	$ 383

CONSOLIDATED AND COMBINED STATEMENT OF CHANGES IN EQUITY
Common stock
(In millions)	Common shares outstanding	Par value	Additional paid-in capital	Retained earnings	Treasury common stock	Net parent investment	Accumulated other comprehensive income (loss) – net	Equity attributable to noncontrolling interests	Total equity
Balances as of January 1, 2025	276	$ 3	$ 9,733	$ 1,611	$ ( 43 )	$ —	$ ( 1,759 )	$ 1,047	$ 10,593
Issuance of shares in connection with equity awards	2	—	( 177 )	—	—	—	—	—	( 177 )
Share-based compensation expense	—	—	257	—	—	—	—	—	257
Dividends declared ( $ 1.25 per common share)	—	—	—	( 341 )	—	—	—	—	( 341 )
Repurchase of common stock	( 8 )	—	—	( 3,342 )	—	—	—	( 3,342 )
Net income (loss)	—	—	—	4,884	—	—	—	( 4 )	4,879
Currency translation adjustments – net of taxes	—	—	—	—	—	—	474	—	473
Benefit plans – net of taxes	—	—	—	—	—	—	( 189 )	2	( 187 )
Cash flow hedges – net of taxes	—	—	—	—	—	—	67	—	67
Changes attributable to noncontrolling interests	—	—	—	—	—	—	—	73	73
Balances as of December 31, 2025	270	$ 3	$ 9,813	$ 6,154	$ ( 3,385 )	$ —	$ ( 1,407 )	$ 1,118	$ 12,296
Balances as of January 1, 2024	—	$ —	$ —	$ —	$ —	$ 8,051	$ ( 635 )	$ 964	$ 8,380
Transfers from (to) Parent, including Spin-Off related adjustments	—	—	—	—	—	794	—	—	794
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment	274	3	8,712	—	—	( 8,715 )	—	—	—
Issuance of shares in connection with equity awards(a)	2	—	52	—	( 40 )	—	—	—	12
Share-based compensation expense	—	—	155	—	—	—	—	—	155
Dividends declared ( $ 0.25 per common share)	—	—	—	( 70 )	—	—	—	—	( 70 )
Repurchase of common stock	—	—	—	—	( 3 )	—	—	—	( 3 )
Net income (loss)	—	—	—	1,682	( 130 )	—	7	1,559
Currency translation adjustments – net of taxes	—	—	—	—	—	—	( 399 )	2	( 397 )
Benefit plans – net of taxes	—	—	—	—	—	—	( 732 )	2	( 730 )
Cash flow hedges – net of taxes	—	—	—	—	—	—	6	—	6

Year Ended December 31,
2025	2024	2023
Net income	2,246	3,006	9,149
Other comprehensive income (loss):
Foreign currency translation adjustment	659	( 546 )	433
Net gain on pension and other postretirement benefits	170	207	30
Net gain (loss) on cash flow hedges	24	( 87 )	90
Other comprehensive income (loss) before income tax expense	853	( 426 )	553
Income tax expense related to items of other comprehensive income (loss)	36	21	18
Other comprehensive income (loss)	817	( 447 )	535
Comprehensive income	3,063	2,559	9,684
Less: Comprehensive income (loss) attributable to noncontrolling interests	( 88 )	191	360
Comprehensive income attributable to Valero Energy Corporation stockholders	3,151	2,368	9,324

See Notes to Consolidated Financial Statements.

VALERO ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

(millions of dollars, except per share amounts)

Valero Energy Corporation Stockholders’ Equity
Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total	Non- controlling Interests	Total Equity
Balance as of December 31, 2022	7	6,863	( 20,197 )	38,247	( 1,359 )	23,561	1,907	25,468
Net income	—	—	—	8,835	—	8,835	314	9,149
Dividends on common stock ($ 4.08 per share)	—	—	—	( 1,452 )	—	( 1,452 )	—	( 1,452 )
Stock-based compensation expense	—	94	—	—	—	94	—	94
Transactions in connection with stock-based compensation plans	—	( 56 )	63	—	—	7	—	7
Purchases of common stock for treasury	—	—	( 5,188 )	—	—	( 5,188 )	—	( 5,188 )
Contributions from noncontrolling interests	—	—	—	—	—	—	75	75
Distributions to noncontrolling interests	—	—	—	—	—	—	( 164 )	( 164 )
Other comprehensive income	—	—	—	—	489	489	46	535
Balance as of December 31, 2023	7	6,901	( 25,322 )	45,630	( 870 )	26,346	2,178	28,524
Net income	—	—	—	2,770	—	2,770	236	3,006
Dividends on common stock ($ 4.28 per share)	—	—	—	( 1,384 )	—	( 1,384 )	—	( 1,384 )
Stock-based compensation expense	—	89	—	—	—	89	—	89
Transactions in connection with stock-based compensation plans	—	( 51 )	52	—	—	1	—	1
Purchases of common stock for treasury	—	—	( 2,908 )	—	—	( 2,908 )	—	( 2,908 )
Contributions from noncontrolling interests	—	—	—	—	—	—	90	90
Distributions to noncontrolling interests	—	—	—	—	—	—	( 182 )	( 182 )
Conversion of IEnova Revolver debt to equity (see Notes 9 and 12)	—	—	—	—	—	—	732	732
Other comprehensive loss	—	—	—	—	( 402 )	( 402 )	( 45 )	( 447 )
Balance as of December 31, 2024	7	6,939	( 28,178 )	47,016	( 1,272 )	24,512	3,009	27,521
Net income (loss)	—	—	—	2,348	—	2,348	( 102 )	2,246
Dividends on common stock ($ 4.52 per share)	—	—	—	( 1,405 )	—	( 1,405 )	—	( 1,405 )
Stock-based compensation expense	—	100	—	—	—	100	—	100

Fiscal Year Ended	Sep 28, 2025	Sep 29, 2024	Oct 1, 2023
Net earnings including noncontrolling interests	1,856.7	3,762.3	4,124.7
Other comprehensive income/(loss):
Unrealized holding gains/(losses) on available-for-sale debt securities	2.7	12.1	3.3
Tax (expense)/benefit	( 0.8 )	( 3.0 )	( 0.8 )
Unrealized gains/(losses) on cash flow hedging instruments	80.1	106.0	( 149.4 )
Tax (expense)/benefit	( 17.9 )	( 16.2 )	17.2
Unrealized gains/(losses) on net investment hedging instruments	255.9	55.7	73.2
Tax (expense)/benefit	( 64.6 )	( 14.1 )	( 18.5 )
Translation adjustment and other	( 113.4 )	225.9	( 109.0 )
Tax (expense)/benefit	—	( 8.8 )	1.8
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, translation adjustment, and other	( 224.9 )	( 19.2 )	( 158.9 )
Tax expense/(benefit)	52.4	11.0	26.1
Other comprehensive income/(loss), net of tax	( 30.5 )	349.4	( 315.0 )
Comprehensive income including noncontrolling interests	1,826.2	4,111.7	3,809.7
Comprehensive income/(loss) attributable to noncontrolling interests	0.1	1.8	( 0.5 )
Comprehensive income attributable to Starbucks	1,826.1	4,109.9	3,810.2

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

Year ended December 31,	2025	2024	2023
(millions of Canadian dollars)
Earnings	7,789	5,631	6,058
Other comprehensive income/(loss), net of tax
Change in unrealized gain on cash flow hedges	28	73	220
Gain/(loss) on net investment hedges (Note 23)	419	( 1,305	409
Other comprehensive income/(loss) from equity investees and other investments	24	( 10	6
Excluded components of fair value hedges	14	9	12
Reclassification to earnings of loss on cash flow hedges	27	23	14
Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts	( 30	( 16	( 18
Reclassification of actuarial gain on pension and OPEB from regulatory assets	38	—	—
Actuarial gain/(loss) on pension and OPEB	126	248	( 130
Foreign currency translation adjustments	( 3,134	5,895	( 1,728
Other comprehensive income/(loss), net of tax	( 2,488	4,917	( 1,215
Comprehensive income	5,301	10,548	4,843
Comprehensive (income)/loss attributable to noncontrolling interests and redeemable noncontrolling interest	( 244	( 295	131
Comprehensive income attributable to controlling interests	5,057	10,253	4,974
Preference share dividends	( 419	( 388	( 352
Comprehensive income attributable to common shareholders	4,638	9,865	4,622

The accompanying notes are an integral part of these consolidated financial statements.

ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

framework for assessing how each of our business segments performed excluding the impact of foreign currency fluctuations, we present period-over-period percentage changes in our revenues and certain operating expenses on a constant currency basis in addition to the historical amounts as reported. Our constant currency presentation excludes the impact of our foreign currency cash flow hedging activities. Presenting constant currency results of operations is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, we have presented this non-GAAP financial measure to provide investors with an additional tool to evaluate our results of operations. To present this information, our current period revenues and certain operating expenses denominated in currencies other than the U.S. dollar are converted into U.S. dollars at constant exchange rates rather than the actual exchange rates in effect during the respective periods (i.e. average rates in effect for the year ended December 31, 2024 are used as exchange rates for the year ended December 31, 2025 when comparing the year ended December 31, 2025 with the year ended December 31, 2024).

Liquidity and Capital Resources

Sources and Uses of Cash

Customer collections are our primary source of cash. We believe we have a strong customer base, and have continued to experience relatively strong collections. As of December 31, 2025, our principle sources of liquidity were $3.2 billion of cash, cash equivalents and short-term investments. In addition to our cash balance, we had approximately $4.0 billion of additional liquidity available to us from our $4.0 billion revolving facility and general access to both public and private debt and the equity capital markets. We also have additional liquidity available to us from our 2024 ATM program, under which we may offer and sell from time to time our common stock in "at the market" transactions on either a spot or forward basis. As of December 31, 2025, we had approximately $1.2 billion available for sale remaining under the 2024 ATM Program.

We believe we have sufficient cash, coupled with anticipated cash generated from operating activities and external financing sources, to meet our operating requirements, including repayment of the current portion of our debt as it becomes due, distribution of dividends, completion of our publicly-announced acquisitions, ordinary costs to operate the business, and expansion projects.

For the Year Ended December 31,
2025	2024
Net income attributable to common unitholders (GAAP) (1)	5,810	5,897
Adjustments to net income attributable to common unitholders to derive DCF and Operational DCF (addition or subtraction indicated by sign):
Depreciation, amortization and accretion expenses	2,623	2,473
Cash distributions received from unconsolidated affiliates (2)	438	483
Equity in income of unconsolidated affiliates	(361)	(408)
Asset impairment charges	50	57
Change in fair market value of derivative instruments	16	(20)
Deferred income tax expense	46	45
Sustaining capital expenditures (3)	(620)	(667)
Other, net	(98)	(2)
Operational DCF (non-GAAP)	7,904	7,858
Proceeds from asset sales and other matters	82	14
Monetization of interest rate derivative instruments accounted for as cash flow hedges	14	(33)
DCF (non-GAAP)	8,000	7,839
Cash distributions paid to common unitholders with respect to period, including distribution equivalent rights on phantom unit awards	4,752	4,598
Cash distribution per common unit declared by Enterprise GP with respect to period (4)	2.1750	2.1000
Total DCF retained by the Partnership with respect to period (5)	3,248	3,241
Distribution coverage ratio (6)	1.7	x	1.7	x

(1) For a discussion of the primary drivers of changes in our comparative income statement amounts, see “ Income Statement Highlights ” within this Part II, Item 7.

(2) Reflects aggregate distributions received from unconsolidated affiliates attributable to both earnings and the return of capital.

(3) Sustaining capital expenditures include cash payments and accruals applicable to the period.

(4) See Note 8 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report for information regarding our quarterly cash distributions declared with respect to the years indicated.

(5) Cash retained by the Partnership may be used for capital investments, debt service, working capital, operating expenses, common unit repurchases, commitments and contingencies and other amounts. The retention of cash reduces our reliance on the capital markets.

(6) Distribution coverage ratio is determined by dividing DCF by total cash distributions paid to common unitholders and in connection with distribution equivalent rights with respect to the period.

The following table presents a reconciliation of net cash flow provided by operating activities to DCF and Operational DCF for the years indicated (dollars in millions):

The fair value of our floating to fixed interest rate swap agreements was estimated to be an asset of $32 million as of December 31, 2025 based on the present value of expected future cash flows. These interest rate swap agreements are accounted for as cash flow hedges.

Foreign Currency Exchange Rate Risk

Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt and our international business operations. On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to manage portions of the exposure to movements in foreign currency exchange rates.

The estimated fair value, as of December 31, 2025, of our Euro-denominated forward contracts associated with our ship construction contracts was an asset of $114 million, based on the present value of expected future cash flows. As of December 31, 2025, the aggregate cost of our ships on order, not including ships on order by our Partner Brands, was approximately $11.3 billion, of which we had deposited $1.0 billion as of such date. Approximately 64.1% and 43.4% of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate at December 31, 2025 and 2024, respectively. A hypothetical 10% strengthening of the Euro as of December 31, 2025, assuming no changes in comparative interest rates, would result in a $727 million increase in the United States dollar cost of the foreign currency denominated ship construction contracts exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge.

We address market risk from changes in foreign currency exchange rates and interest rates through risk management programs which are operated pursuant to documented corporate risk management policies and include the use of derivative and nonderivative financial instruments. We recognize all derivative and nonderivative financial instruments in our consolidated financial statements at fair value in accordance with FASB ASC Topic 815 , Derivatives and Hedging (FASB ASC Topic 815), and we present assets and liabilities associated with our derivative financial instruments on a gross basis in our consolidated financial statements. In accordance with FASB ASC Topic 815, for those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The accounting for changes in the fair value of a derivative instrument depends on whether it qualifies for, and has been designated as part of a hedging relationship, as well as on the type of hedging relationship. Our derivative instruments do not subject our earnings to material risk, as gains and losses on these derivatives generally offset gains and losses on the item being hedged, and we do not enter into derivative transactions for speculative purposes.

Currency Hedging Instruments

Our risk from changes in currency exchange rates consists primarily of monetary assets and liabilities; forecasted intercompany and third-party transactions; and net investments in certain subsidiaries. We manage currency exchange rate risk at a consolidated level to reduce the cost of hedging by taking advantage of offsetting transactions. We employ derivative and nonderivative instruments, primarily forward currency contracts, to reduce the risk to our earnings and cash flows associated with changes in currency exchange rates. We may experience unanticipated currency exchange gains or losses to the extent the actual activity is different than forecasted. In addition, changes in currency exchange rates related to any unhedged transactions may impact our earnings and cash flows.

Our revenues, costs and expenses, and monetary assets and liabilities are exposed to changes in foreign currency exchange rates due to our global operating, investing, and financing activities. We hedge revenues, expenses, and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short-term and anticipated basis. The result of these hedging activities are included in our consolidated balance sheet and consolidated statement of operations. We may experience some fluctuations within individual lines of the consolidated balance sheet and consolidated statement of operations because our hedging program is not designed to offset the currency movements in each category of revenues, expenses, monetary assets and liabilities. Our cash flow hedging program is designed to hedge short-term currency movements based on a rolling period of up to twelve months. Therefore, we are exposed to currency fluctuations over the longer term. To the extent that we are required to pay for all, or portions, of an acquisition price in foreign currencies, we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Results from Operations - Years ended October 31, 2025, 2024 and 2023

A summary of our results is as follows: