v3.25.2
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 28, 2025
Derivative Instruments and Fair Value Measurements [Abstract]  
Schedule of Total Notional Amounts of Derivative Instruments
Total notional amounts of the Company’s derivative instruments as of June 28, 2025 and December 28, 2024 were as follows:
(millions)June 28,
2025		December 28,
2024
Foreign currency exchange contracts$3,867 $3,243 
Cross-currency contracts2,285 2,030 
Interest rate contracts1,050 1,050 
Commodity contracts171 285 
Total$7,373 $6,608 
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of June 28, 2025 and December 28, 2024:
Derivatives designated as hedging instruments
 June 28, 2025December 28, 2024
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Cross-currency contracts:
Other current assets$— $8 $8 $— $47 $47 
Other assets— — — — 51 51 
Total assets$— $8 $8 $— $98 $98 
Liabilities:
Cross-currency contracts:
Other current liabilities$— $(110)$(110)$— $(2)$(2)
   Other liabilities— (23)(23)— (9)(9)
Interest rate contracts(a):
Other current liabilities— — — — — — 
Other liabilities— (27)(27)— (41)(41)
Total liabilities$— $(160)$(160)$— $(52)$(52)
(a) The fair value of the related hedged portion of the Company's long-term debt, a Level 2 liability, was $0.5 billion and $0.4 billion as of June 28, 2025 and December 28, 2024, respectively.
Derivatives not designated as hedging instruments
 June 28, 2025December 28, 2024
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Foreign currency exchange contracts:
Other current assets$— $65 $65 $— $65 $65 
Other assets— 7 7 — 2 2 
Interest rate contracts:
Other current assets— 6 6 — 6 6 
Other assets— 1 1 — 1 1 
Commodity contracts:
Other current assets6 — 6 4 — 4 
Total assets$6 $79 $85 $4 $74 $78 
Liabilities:
Foreign currency exchange contracts:
Other current liabilities$— $(59)$(59)$— $(33)$(33)
Other liabilities— (10)(10)— (1)(1)
Interest rate contracts:
Other current liabilities— (8)(8)— (8)(8)
Other liabilities— — — — (1)(1)
Commodity contracts:
Other current liabilities(2)— (2)(7)— (7)
Total liabilities$(2)$(77)$(79)$(7)$(43)$(50)
Schedule of Derivative Instruments in Statement of Financial Position Fair Value
The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of June 28, 2025 and December 28, 2024.
(millions)Line Item in the Consolidated Balance Sheet in which the hedged item is includedCarrying amount of the hedged liabilitiesCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a)
June 28,
2025		December 28,
2024		June 28,
2025		December 28,
2024
Interest rate contractsCurrent maturities of long-term debt$599 $627 $(1)$1 
Interest rate contractsLong-term debt$421 $1,005 $(27)$(43)
(a) The fair value adjustment related to current maturities of long-term debt includes $(1) million and $1 million from discontinued hedging relationships as of June 28, 2025 and December 28, 2024, respectively. The fair value adjustment related to long-term debt includes $(1) million from discontinued hedging relationships as of December 28, 2024.
Schedule of Offsetting Assets
    
As of June 28, 2025:
  
Gross Amounts Not Offset in the
Consolidated Balance Sheet
  
  
Amounts
Presented in the
Consolidated
Balance Sheet		Financial
Instruments		Cash Collateral
Received/
Posted		Net
Amount
Total asset derivatives$92 $(84)$— $8 
Total liability derivatives$(239)$84 $67 $(88)

 
As of December 28, 2024:
  
Gross Amounts Not Offset in the
Consolidated Balance Sheet
  
  
Amounts
Presented in the
Consolidated
Balance Sheet		Financial
Instruments		Cash Collateral
Received/
Posted		Net
Amount
Total asset derivatives$176 $(88)$61 $149 
Total liability derivatives$(102)$88 $14 $— 
Schedule of Offsetting Liabilities
    
As of June 28, 2025:
  
Gross Amounts Not Offset in the
Consolidated Balance Sheet
  
  
Amounts
Presented in the
Consolidated
Balance Sheet		Financial
Instruments		Cash Collateral
Received/
Posted		Net
Amount
Total asset derivatives$92 $(84)$— $8 
Total liability derivatives$(239)$84 $67 $(88)

 
As of December 28, 2024:
  
Gross Amounts Not Offset in the
Consolidated Balance Sheet
  
  
Amounts
Presented in the
Consolidated
Balance Sheet		Financial
Instruments		Cash Collateral
Received/
Posted		Net
Amount
Total asset derivatives$176 $(88)$61 $149 
Total liability derivatives$(102)$88 $14 $— 
Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended June 28, 2025 and June 29, 2024 was as follows:
Derivatives and non-derivatives in net investment hedging relationships
(millions)Gain (loss)
recognized in
AOCI		Gain (loss) excluded from assessment of hedge effectivenessLocation of gain (loss) in income of excluded component
 June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Foreign currency denominated long-term debt$(58)$14 $— $— 
Cross-currency contracts(172)14 12 6 Interest expense
Total$(230)$28 $12 $6 
Derivatives not designated as hedging instruments
(millions)Location of gain
(loss) recognized
in income		Gain (loss)
recognized in
income
  June 28,
2025		June 29,
2024
Foreign currency exchange contractsCOGS$(13)$14 
Foreign currency exchange contractsOther income (expense), net17 2 
Foreign currency exchange contractsSG&A(6)2 
Commodity contractsCOGS— (32)
Total$(2)$(14)
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended June 28, 2025 and June 29, 2024 was as follows:

Derivatives and non-derivatives in net investment hedging relationships
(millions)Gain (loss)
recognized in
AOCI		Gain (loss) excluded from assessment of hedge effectivenessLocation of gain (loss) in income of excluded component
 June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Foreign currency denominated long-term debt$(82)$51 $— $— 
Cross-currency contracts(245)48 23 14 Interest expense
Total$(327)$99 $23 $14 
Derivatives not designated as hedging instruments
(millions)Location of gain
(loss) recognized
in income		Gain (loss)
recognized in
income
  June 28,
2025		June 29,
2024
Foreign currency exchange contractsCOGS$(30)$13 
Foreign currency exchange contractsOther income (expense), net23 6 
Foreign currency exchange contractsSGA7 11 
Interest rate contractsInterest expense1 — 
Commodity contractsCOGS14 (49)
Total$15 $(19)
The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the quarters ended June 28, 2025 and June 29, 2024:
June 28, 2025June 29, 2024
(millions)Interest ExpenseInterest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded$63 $83 
Gain (loss) on fair value hedging relationships:
Interest contracts:
Hedged items(6)(4)
Derivatives designated as hedging instruments5 6 
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income2 (1)
The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the year-to-date periods ended June 28, 2025 and June 29, 2024:
June 28, 2025June 29, 2024
(millions)Interest ExpenseInterest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded$126 $166 
Gain (loss) on fair value hedging relationships:
Interest contracts:
Hedged items(14)(3)
Derivatives designated as hedging instruments13 7 
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income3 (3)