v3.22.2.2
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Oct. 02, 2022
Oct. 03, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gains/(Losses) Recognized in OID [1] $ (420) $ (74) $ (832) $ (97)
Derivative, Amount of Gains/(Losses) Recognized in OCI 589 213 1,443 179
All other net, Amount of Gains/(Losses) Recognized in OCI [1],[2] 0 0 0 1
Amount of Gains/(Losses) Recognized in OCI [1] 1,396 453 3,264 683
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [3] 615 (48) 972 (286)
All other net, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[2] 0 0 0 1
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1] 647 (21) 1,068 (204)
Designated as Hedging Instrument [Member] | Foreign currency short-term borrowings [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Non-Derivative, Amount of Gains/(Losses) Recognized in OCI [1],[4] 0 25 26 52
Non-Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[4] 0 0 0 0
Designated as Hedging Instrument [Member] | Foreign currency long-term debt [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Non-Derivative, Amount of Gains/(Losses) Recognized in OCI [1],[4] 49 19 119 66
Non-Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[4] 0 0 0 0
Derivative Financial Instruments Not Designated as Hedges [Member] | Foreign exchange contracts [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative, Amount of Gains/(Losses) Recognized in OID [1] (420) (74) (832) (97)
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative, Amount of Gains/(Losses) Recognized in OCI [1],[5] 528 204 1,339 147
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings [1],[2] 61 10 105 31
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[5] 558 (59) 872 (314)
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing [1],[2] 57 10 100 28
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative, Amount of Gains/(Losses) on interest rate contract Recognized in OID [1] (124) (5) (346) (6)
Derivative, Amount of Gains/(Losses) on hedged item Recognized in OID [1] 124 5 346 6
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings [1],[2] 78 19 63 54
Derivative, Amount of Gains/(Losses) Recognized in OCI [1] 680 177 1,613 332
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing [1],[2] 32 26 95 82
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1] $ 0 $ 0 $ 0 $ 0
[1] OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income
[2] The amounts reclassified from OCI were reclassified into OID.
[3] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E.
[4] Short-term borrowings and long-term debt include foreign currency borrowings, which are used in net investment hedges. The related short-term borrowings’ carrying value as of December 31, 2021 was $1.1 billion. The related long-term debt carrying values as of October 2, 2022 and December 31, 2021 were $726 million and $844 million, respectively.
[5] The amounts reclassified from OCI into COS were:
•a net gain of $125 million in the third quarter of 2022;
•a net gain of $227 million in the first nine months of 2022;
•a net loss of $18 million in the third quarter of 2021; and
•a net loss of $94 million in the first nine months of 2021.
The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $1 billion within the next 12 months into income. The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 21 years and relates to foreign currency debt.