DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 29, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments on a Gross Basis

The following table presents the fair values of our open derivative financial instruments on a gross basis.


	Assets				Liabilities
	June 29, 2025		December 29, 2024		June 29, 2025		December 29, 2024
	(in millions)
Derivatives using the “hedge accounting” method:
Commodity contracts	$	12	$	13	$	74	$	37



Derivatives using the “mark-to-market” method:
Commodity contracts	1		2		16		7


Total fair value of derivative instruments	$	13	$	15	$	91	$	44

Schedule of Derivative Assets and Liabilities

The following tables reconcile the gross amounts of derivative assets and liabilities to the net amounts presented in our condensed consolidated balance sheets and the related effects of cash collateral under netting arrangements that provide a legal right of offset of assets and liabilities.


	June 29, 2025
	Gross Amount of Derivative Assets/ Liabilities		Netting of Derivative Assets/ Liabilities		Net Derivative Assets/Liabilities		Netting of Derivative and Cash Collateral		Net Amount Presented in the Condensed Consolidated Balance Sheet (1)
	(in millions)
Assets:
Commodity contracts	$	13	$	(12)	$	1	$	43	$	44



Liabilities:
Commodity contracts	90		(12)		78		(59)		19

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(1)Net derivative assets are recorded in prepaid expenses and other current assets. Net derivative liabilities are recorded in accrued expenses and other current liabilities. These balances include $102 million in cash collateral paid to and held by our brokers, $43 million of which represents the initial margin and exceeded the related open derivative liability position.


	December 29, 2024
	Gross Amount of Derivative Assets/ Liabilities		Netting of Derivative Assets/ Liabilities		Net Derivative Assets/Liabilities		Netting of Derivative and Cash Collateral		Net Amount Presented in the Condensed Consolidated Balance Sheet (1)
	(in millions)
Assets:
Commodity contracts	$	15	$	(13)	$	2	$	37	$	39



Liabilities:
Commodity contracts	44		(13)		31		(23)		8

________________

(1)Net derivative assets are recorded in prepaid expenses and other current assets. Net derivative liabilities are recorded in accrued expenses and other current liabilities. These balances include $60 million of cash collateral paid to and held by one of our brokers, $37 million of which represents the initial margin and exceeded the related open derivative liability position.

Schedule of Notional Amounts of Outstanding Derivative Positions

As of June 29, 2025, the notional volumes associated with open derivative instruments designated in cash flow hedging relationships were as follows:


	Volume	Metric
Lean hogs	646,905,000	Pounds
Corn	27,682,000	Bushels
Soybean meal	232,000	Tons
Natural Gas	3,500,000	Million BTU
Diesel	6,048,000	Gallons

As of June 29, 2025, the notional volumes associated with open derivative instruments designated in fair value hedging relationships were as follows:


	Volume	Metric

Lean hogs	244,880,000	Pounds
Corn	4,865,000	Bushels
Soybeans	530,000	Bushels

Schedule of Pre-tax Gains and Losses on Derivative Instruments

The following table presents the effects on our condensed consolidated financial statements of pre-tax gains and losses on derivative instruments designated in cash flow hedging relationships for the periods indicated:


	Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Derivative				Gains (Losses) Reclassified from Accumulated Other Comprehensive Loss into Earnings
	Three Months Ended				Three Months Ended
	June 29, 2025		June 30, 2024			June 29, 2025		June 30, 2024
	(in millions)
Commodity contracts	$	(82)	$	61		$	(3)	$	(23)


	Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Derivative				Gains (Losses) Reclassified from Accumulated Other Comprehensive Loss into Earnings
	Six Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024			June 29, 2025		June 30, 2024
	(in millions)
Commodity contracts	$	(38)	$	—		$	(14)	$	(25)
Interest rate contracts	—		—			(1)		(1)
Foreign currency contracts	—		—			—		1
Total	$	(38)	$	—		$	(14)	$	(25)

As of June 29, 2025, the notional volumes associated with open derivative instruments using the “mark-to-market” method were as follows:


	Volume	Metric
Commodity contracts:
Lean hogs	41,742,000	Pounds
Corn	11,455,000	Bushels
Soybean meal	110,000	Tons
Soybeans	120,000	Bushels







Natural gas	140,000	Million BTU

Diesel	1,008,000	Gallons



Foreign currency contracts	27,138,589	U.S. Dollars

The following table presents the effect of derivatives on the condensed consolidated statements of income for the periods indicated.


	Three Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
	(in millions)				(in millions)
Sales:
Cash flow hedging—commodity contracts	$	(6)	$	(14)	$	(14)	$	(12)
Mark-to-market—commodity contracts	(20)		9		(13)		(4)
Total derivative loss recognized in sales	(25)		(5)		(27)		(17)

Cost of sales:
Cash flow hedging—commodity contracts	2		(9)		1		(13)

Fair value hedging—commodity contracts:
Change in fair value of open derivatives	(15)		5		(14)		4
Change in fair value of related hedged items	15		(5)		13		(4)
Gain (loss) on closed derivatives (1)	(2)		2		—		6

Mark-to-market—commodity contracts	4		2		8		(3)
Total derivative gain (loss) recognized in cost of sales	4		(5)		8		(10)

Selling, general and administrative expenses:
Mark-to-market—foreign currency contracts	(1)		1		(1)		2

Interest expense:
Cash flow hedging—interest rate contracts	—		—		(1)		(1)







Total derivative loss	$	(23)	$	(9)	$	(22)	$	(25)

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(1)Represents the amount of fair value hedge adjustment applied to the carrying amount of hedged assets that is recognized in cost of sales as the underlying hedged assets are relieved from inventories and charged to cost of sales.