v3.26.3
Financial Instruments (Tables)
 8 Months Ended
Sep. 05, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Financial Instruments
The notional amounts of our financial instruments used to hedge the above risks are as follows:
Notional Amounts(a)
9/5/202612/27/2025
Commodity contracts$1.7 $1.5 
Interest rate swap contracts$2.0 $2.0 
Foreign exchange contracts (b)
$4.0 $3.1 
Cross-currency contracts (c)
$1.3 $1.7 
Non-derivative debt instruments (b)
$11.7 $4.4 
(a)In billions. Subsequent to September 5, 2026, we entered into a forward sale contract for a notional amount of $253 million to hedge the exposure to changes in price of an investment.
(b)During the 36 weeks ended September 5, 2026, we designated $4.5 billion of existing euro denominated debt and $2.9 billion of euro denominated debt issued in February 2026 as net investment hedges to partially offset the effects of foreign currency on our investments in certain of our foreign operations. During the 12 and 36 weeks ended September 5, 2026, we designated $580 million of foreign exchange contracts maturing in October 2026 as net investment hedges to partially offset the effects of foreign currency on our investments in certain of our foreign operations.
(c)During the 36 weeks ended September 5, 2026, U.S. dollar for euro cross-currency interest rate swaps with a total notional amount of $0.7 billion matured. During the 12 and 36 weeks ended September 5, 2026, we entered into Thai baht for U.S. dollar cross-currency interest rate swaps with a total notional amount of $0.3 billion and maturity dates ranging from May 2027 to May 2031. The cross-currency interest rate swaps are designated as net investment hedges to hedge the net assets of certain foreign operations with Thai baht functional currency.
Debt Securities, Available-for-Sale
The activity related to our Level 3 investments in certain available-for-sale debt securities is as follows:
12 Weeks Ended36 Weeks Ended
9/5/20269/6/20259/5/20269/6/2025
Celsius:
Balance, beginning of period$1,453 $958 $1,852 $785 
Acquired— 590 — 590 
Net unrealized gain/(loss)43 535 (328)722 
Cash dividends received(14)(6)(42)(20)
Balance, end of period1,482 2,077 1,482 2,077 
Other:
Balance, beginning of period259 261 275 256 
Net unrealized gain41 6 25 11 
Balance, end of period (a)
300 267 300 267 
Total Level 3 available-for-sale balance, end of period$1,782 $2,344 $1,782 $2,344 
(a)Subsequent to September 5, 2026, we converted this available-for-sale debt security into common shares of the issuer pursuant to the terms of the investment agreement. Additionally, we executed a forward sale contract to hedge the exposure to changes in market price of this investment, resulting in an expected pre-tax income of $50 million to be recognized in corporate unallocated expenses in the fourth quarter of 2026.
Summary of Fair Values of Financial Assets and Liabilities
The fair values of our financial assets and liabilities are categorized as follows:
Fair Value Hierarchy Levels(a)
9/5/202612/27/2025
Assets(a)
Liabilities(a)
Assets(a)
Liabilities(a)
Available-for-sale debt securities (b)
3$1,782 $— $2,127 $— 
Index funds (c)
1382 — 341 — 
Deferred compensation (d)
2— 506 — 495 
Contingent consideration (e)
3— 12 — 278 
Derivatives designated as fair value hedging instruments:
Interest rate swap contracts (f)
2— 38 19 3 
Derivatives designated as cash flow hedging instruments:
Foreign exchange contracts (g)
28 20 6 28 
Cross-currency contracts (g)
2— — — 102 
Commodity contracts (h)
260 15 116 5 
68 35 122 135 
Derivatives designated as net investment hedging instruments:
Foreign exchange contracts (g)
21 3 — 1 
Cross-currency contracts (g)
21 132 — 34 
2 135 — 35 
Derivatives not designated as hedging instruments:
Foreign exchange contracts (g)
21 23 6 32 
Commodity contracts (h)
233 7 4 9 
34 30 10 41 
Total derivatives at fair value (i)
104 238 151 214 
Total$2,268 $756 $2,619 $987 
(a)Fair value hierarchy levels are categorized consistently by Level 1 (quoted prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 in both years. Unless otherwise noted, financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities.
(b)Classified as other assets. The fair value of our investment in Celsius is estimated using probability-weighted discounted future cash flows based on a Monte Carlo simulation using significant unobservable inputs, such as an 80% probability that a certain market-based condition will be met and an average estimated discount rate of 8.9% and 8.5% as of September 5, 2026 and December 27, 2025, respectively. The fair value of the other investment is estimated using a lattice model primarily based on the underlying stock price, volatility and certain significant unobservable inputs, such as a discount rate of 8.3% based on an estimated synthetic credit rating. An increase in the probability that certain market-based conditions will be met or a decrease in the discount rate would result in a higher fair value measurement, while a decrease in the probability that certain market-based conditions will be met or an increase in the discount rate would result in a lower fair value measurement. Subsequent to September 5, 2026, we converted the other available-for-sale debt security into common shares of the issuer pursuant to the terms of the investment agreement. Additionally, we executed a forward sale contract to hedge the exposure to changes in market price of this investment, resulting in an expected pre-tax income of $50 million to be recognized in corporate unallocated expenses in the fourth quarter of 2026.
(c)Based on the price of index funds. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability.
(d)Based on the fair value of investments corresponding to employees’ investment elections.
(e)In connection with our acquisition of VNGR Beverage, LLC (poppi), we recorded a contingent consideration liability measured at fair value. Under the terms of the arrangement, we will be required to make a payment of $300 million if certain performance milestones are achieved by the third quarter of 2027; otherwise, no payment will be made. The fair value of the liability is estimated using discounted future cash flows based on a Monte Carlo simulation using significant unobservable inputs such as forecasts of net revenue and margin. An increase in the net revenue and margin forecasts would result in a higher fair value measurement, while a decrease in the net revenue and margin forecasts would result in a lower fair value measurement. As of September 5, 2026, the fair value of the contingent consideration was $12 million, reflecting a fair value decrease of $105 million and $266 million in the 12 and 36 weeks ended September 5, 2026, respectively, recorded in selling, general and administrative expenses.
(f)Based on Secured Overnight Financing Rate forward rates. As of September 5, 2026, the carrying amount of hedged fixed-rate debt was $2.0 billion, which was classified on the balance sheet within long-term debt obligations.
(g)Based on recently reported market transactions of spot and/or forward rates.
(h)Primarily based on recently reported market transactions of swap arrangements.
(i)Derivative assets and liabilities are presented on a gross basis on our balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on our balance sheet as of September 5, 2026 and December 27, 2025 were not material. Collateral received or posted against our asset or liability positions was not material. Exchange-traded commodity futures are cash-settled on a daily basis and, therefore, not included in the table.
Summary of Losses (Gains) On Derivative Instruments
Losses/(gains) on our fair value hedges recognized in the income statement are as follows:
12 Weeks Ended36 Weeks Ended
9/5/20269/6/20259/5/20269/6/2025
Interest rate swap contracts (a)
$17 $(33)$54 $(76)
(a)Interest rate derivative losses/(gains) are included in net interest expense and other. These losses/(gains) are substantially offset by decreases/increases in the value of the underlying debt, which are also included in net interest expense and other.
Losses/(gains) on our cash flow hedges are categorized as follows:
12 Weeks Ended
Recognized in
Accumulated Other
Comprehensive Loss
Reclassified from
Accumulated Other
Comprehensive Loss
into Income Statement(a)
9/5/20269/6/20259/5/20269/6/2025
Foreign exchange contracts
$16 $8 $7 $13 
Cross-currency contracts— (5)— (8)
Commodity contracts1 (38)(44)(10)
Total$17 $(35)$(37)$(5)
36 Weeks Ended
Recognized in
Accumulated Other
Comprehensive Loss
Reclassified from
Accumulated Other
Comprehensive Loss
into Income Statement(a)
9/5/20269/6/20259/5/20269/6/2025
Foreign exchange contracts
$22 $78 $37 $(11)
Cross-currency contracts5 (60)5 (63)
Commodity contracts (211)(138)(168)(15)
Total$(184)$(120)$(126)$(89)
(a)Foreign exchange derivative losses/(gains) are included in net revenue and cost of sales. Cross-currency interest rate swap derivative losses/(gains) are included in selling, general and administrative expenses. Commodity derivative losses/(gains) are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. See Note 10 for further information.
Losses/(gains) on our net investment hedges are categorized as follows:
12 Weeks Ended
Recognized in
Accumulated Other
Comprehensive Loss

Recognized in Income Statement(a)
9/5/20269/6/20259/5/20269/6/2025
Non-derivative debt instruments$39 $27 $— $— 
Cross-currency contracts27 4 (5)(3)
Foreign exchange contracts
3 (13)(1)— 
Total$69 $18 $(6)$(3)
36 Weeks Ended
Recognized in
Accumulated Other
Comprehensive Loss
Recognized in Income Statement(a)
9/5/20269/6/20259/5/20269/6/2025
Non-derivative debt instruments$(120)$311 $— $— 
Cross-currency contracts97 13 (13)(7)
Foreign exchange contracts(8)(13)(3)— 
Total$(31)$311 $(16)$(7)
(a)Amount excluded from the assessment of effectiveness recognized in earnings associated with cross-currency interest rate swaps and forward contracts.
Derivatives Not Designated as Hedging Instruments
Losses/(gains) recognized in the income statement related to our non-designated hedges are categorized as follows:
12 Weeks Ended
9/5/20269/6/2025
Cost of salesSelling, general and administrative expensesTotalCost of salesSelling, general and administrative expensesTotal
Foreign exchange contracts$— $32 $32 $— $(3)$(3)
Commodity contracts(20)(102)(122)16 4 20 
Total$(20)$(70)$(90)$16 $1 $17 
36 Weeks Ended
9/5/20269/6/2025
Cost of salesSelling, general and administrative expensesTotalCost of salesSelling, general and administrative expensesTotal
Foreign exchange contracts$— $19 $19 $1 $51 $52 
Commodity contracts(48)(277)(325)12 (6)6 
Total$(48)$(258)$(306)$13 $45 $58