v3.26.1
Financial Instruments (Tables)
 6 Months Ended
Jun. 27, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Values of Outstanding Derivatives
The notional values of our outstanding derivative instruments were (in millions):
Notional Amount
June 27, 2026December 27, 2025
Commodity contracts$1,167 $976 
Foreign exchange contracts3,737 4,229 
Cross-currency contracts3,083 3,083 
Schedule of Derivative Fair Values
The fair values and the levels within the fair value hierarchy of derivative instruments recorded on the condensed consolidated balance sheets were (in millions):
June 27, 2026
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1)		Significant Other Observable Inputs
(Level 2)		Total Fair Value
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$— $— $30 $49 $30 $49 
Cross-currency contracts(b)
— — 52 132 52 132 
Derivatives not designated as hedging instruments:
Commodity contracts(c)
32 38 48 25 80 63 
Foreign exchange contracts(a)
— — 9 15 9 15 
Total fair value$32 $38 $139 $221 $171 $259 
(a)    At June 27, 2026, the fair value of our derivative assets was recorded in other current assets ($33 million) and other non-current assets ($6 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($54 million) and other non-current liabilities ($10 million).
(b)    At June 27, 2026, the fair value of our derivative assets was recorded in other current assets ($42 million) and other non-current assets ($10 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($2 million) and other non-current liabilities ($130 million).
(c)     At June 27, 2026, the fair value of our derivative assets was recorded in other current assets ($75 million) and other non-current assets ($5 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($58 million) and other non-current liabilities ($5 million).
December 27, 2025
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1)		Significant Other Observable Inputs
(Level 2)		Total Fair Value
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$— $— $7 $30 $7 $30 
Cross-currency contracts(b)
— — 46 210 46 210 
Derivatives not designated as hedging instruments:
Commodity contracts(c)
11 53 2 20 13 73 
Foreign exchange contracts(a)
— — 14 13 14 13 
Total fair value$11 $53 $69 $273 $80 $326 
(a)    At December 27, 2025, the fair value of our derivative assets was recorded in other current assets and the fair value of our derivative liabilities was recorded in other current liabilities ($42 million) and other non-current liabilities ($1 million).
(b)    At December 27, 2025, the fair value of our derivative assets was recorded in other current assets ($38 million) and other non-current assets ($8 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($2 million) and other non-current liabilities ($208 million).
(c)    At December 27, 2025, the fair value of our derivative assets was recorded in other current assets and the fair value of our derivative liabilities was recorded in other current liabilities ($70 million) and other non-current liabilities ($3 million).
Derivative Impact on Statements of Other Comprehensive Income
The following table presents the pre-tax amounts of derivative gains/(losses) deferred into accumulated other comprehensive income/(losses) and the income statement line item that will be affected when reclassified to net income/(loss) (in millions):
Accumulated Other Comprehensive Income/(Losses) ComponentGains/(Losses) Recognized in Other Comprehensive Income/(Losses) Related to Derivatives Designated as Hedging InstrumentsLocation of Gains/(Losses) When Reclassified to Net Income/(Loss)
For the Three Months EndedFor the Six Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Cash flow hedges:
Foreign exchange contracts$11 $(38)$23 $(48)Cost of products sold
Foreign exchange contracts (excluded component)(2)— (3)(1)Cost of products sold
Foreign exchange contracts — (1)1 (2)SG&A
Cross-currency contracts— 158 — 201 Other expense/(income)
Cross-currency contracts— (4)— (10)Interest expense
Interest rate contracts(12)— (12)— Interest expense
Net investment hedges:
Foreign exchange contracts(14)— (30)— Other expense/(income)
Foreign exchange contracts (excluded component)9 — 6 — Interest expense
Cross-currency contracts(1)(229)40 (259)Other expense/(income)
Cross-currency contracts (excluded component)6 13 13 22 Interest expense
Fair value hedges:
Foreign exchange contracts (excluded component)3 — 2 (3)Other expense/(income)
Cross-currency contracts (excluded component)4 (7)13 22 Other expense/(income)
Total gains/(losses) recognized in statements of comprehensive income$4 $(108)$53 $(78)
Derivative Impact on Statements of Income
The following tables present the pre-tax amounts of derivative gains/(losses) recorded to net income/(loss) and the affected income statement line items (in millions):
For the Three Months Ended
June 27, 2026June 28, 2025
Cost of products soldInterest expenseOther expense/(income)Cost of products soldInterest expenseOther expense/(income)
Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded$4,234 $(31)$(24)$4,169 $240 $(47)
Gains/(losses) related to derivatives designated as hedging instruments:
Cash flow hedges:(a)
Foreign exchange contracts$(5)$— $— $5 $— $— 
Interest rate contracts— (2)— — — — 
Cross-currency contracts— — 2 — (5)161 
Net investment hedges:(a)
Foreign exchange contracts (excluded component)— 1 — — — — 
Cross-currency contracts (excluded component)— 7 — — 16 — 
Fair value hedges:(b)
Foreign exchange contracts— — (3)— — 31 
Cross-currency contracts — — 13 — — (53)
Cross-currency contracts (excluded component)(a)
— — 8 — — — 
Hedged items
— — (10)— — 22 
Gains/(losses) related to derivatives not designated as hedging instruments:
Commodity contracts(58)— — 6 — — 
Foreign exchange contracts— — (9)— — (2)
Interest rate contracts— — (37)— — — 
Cross-currency contracts— — — — — 1 
Total gains/(losses) recognized in statements of income$(63)$6 $(36)$11 $11 $160 
Debt Securities, Available-for-Sale
The following table presents our available-for-sale debt securities’ amortized cost basis, fair value and unrealized gains and losses by significant investment category (in millions):
June 27, 2026
December 27, 2025
Amortized Cost Basis(a)
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
Amortized Cost Basis(a)
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
Debt securities:
Corporate bonds
$153 $— $— $153 $456 $— $— $456 
Commercial paper
85 — — 85 752 — — 752 
U.S. treasury and agency24 — — 24 72 — — 72 
Money market funds104 — — 104 1 — — 1 
Total
$366 $— $— $366 $1,281 $— $— $1,281 
(a)    Amortized cost basis excludes approximately $2 million of accrued interest at June 27, 2026 and $4 million at December 27, 2025.
Summary of Carrying Values of Available-for-Sale Debt Securities
The carrying values of our available-for-sale debt securities were included in the following line items in our condensed consolidated balance sheet (in millions):
June 27, 2026December 27, 2025
Cash and cash equivalents
$104 $221 
Marketable securities
262 1,060 
Total
$366 $1,281