v3.26.3
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 27, 2026
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.
AssetsLiabilities
September 27,
2026		December 28,
2025		September 27,
2026		December 28,
2025
(in millions)
Derivatives using the “hedge accounting” method:
Commodity contracts$44 $26 $39 $2 
Derivatives using the “mark-to-market” method:
Commodity contracts5 2 5 1 
Total fair value of derivative instruments$49 $28 $45 $3 
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.
September 27, 2026
Gross Amount of Derivative Assets/ LiabilitiesNetting of Derivative Assets/ LiabilitiesNet Derivative Assets/LiabilitiesNetting of Derivative and Cash Collateral
Net Amount Presented in the Condensed Consolidated Balance Sheet (1)
(in millions)
Assets:
Commodity contracts$49 $(19)$29 $5 $34 
Liabilities:
Commodity contracts$44 $(19)$25 $(25)$1 
Foreign exchange contracts— — — — — 
Total$45 $(19)$25 $(24)$1 
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(1)Net assets are recorded in prepaid expenses and other current assets. Net liabilities are recorded in accrued expenses and other current liabilities. These balances include $9 million in excess collateral paid to and held by our brokers, which represents initial margin that exceeded the value of related open derivative positions.

December 28, 2025
Gross Amount of Derivative Assets/ LiabilitiesNetting of Derivative Assets/ LiabilitiesNet Derivative Assets/LiabilitiesNetting of Derivative and Cash Collateral
Net Amount Presented in the Condensed Consolidated Balance Sheet (1)
(in millions)
Assets:
Commodity contracts$28 $(3)$25 $3 $28 
Liabilities:
Commodity contracts$3 $(3)$— $— $— 
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(1)Net assets are recorded in prepaid expenses and other current assets. Net liabilities are recorded in accrued expenses and other current liabilities. These balances include $7 million in excess collateral paid to and held by our brokers, which represents the initial margin that exceeded the value of related open derivative position.
Schedule of Notional Amounts of Outstanding Derivative Positions
As of September 27, 2026, the notional volumes associated with open derivative instruments designated in cash flow hedging relationships were as follows:
VolumeMetric
Lean hogs314,329,000 Pounds
Corn31,494,000 Bushels
Natural Gas1,620,000 Million BTU
Diesel252,000 Gallons
Soybean meal137,000 Tons
As of September 27, 2026, the notional volumes associated with open derivative instruments designated in fair value hedging relationships were as follows:
VolumeMetric
Lean hogs14,760,000 Pounds
Corn4,445,000 Bushels
Soybeans3,235,000 Bushels
Schedule of Pre-tax Gains and Losses on Derivative Instruments
The following tables present 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 DerivativeGains (Losses) Reclassified from Accumulated Other Comprehensive Loss into Earnings
Three Months EndedThree Months Ended
September 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
(in millions)
Commodity contracts$18 $(33)$16 $(38)
Gains (Losses) Recognized in Other Comprehensive Income (Loss) on DerivativeGains (Losses) Reclassified from Accumulated Other Comprehensive Loss into Earnings
Nine Months EndedNine Months Ended
September 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
(in millions)
Commodity contracts$40 $(71)$50 $(51)
Interest rate swaps— — (1)(1)
Total$40 $(71)$49 $(52)
As of September 27, 2026, the notional volumes associated with open derivative instruments using the “mark-to-market” method were as follows:
VolumeMetric
Commodity contracts:
Lean hogs88,686,000 Pounds
Corn17,652,000 Bushels
Soybeans240,000 Bushels
Soybean meal238,000 Tons
Wheat200,000 Bushels
Diesel84,000 Gallons
Natural gas54,000 Million BTU
Foreign currency contracts36,347,465 U.S. Dollars
The following table presents the effect of derivatives on the condensed consolidated statements of income for the periods indicated.
Three Months EndedNine Months Ended
September 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
(in millions)
Sales:
Cash flow hedging—commodity contracts
$20 $(39)$45 $(53)
Mark-to-market—commodity contracts
(1)2 2 (11)
Total derivative gain (loss) recognized in sales19 (37)47 (65)
Cost of sales:
Cash flow hedging—commodity contracts
(4)1 5 2 
Fair value hedging—commodity contracts:
Change in fair value of derivatives(12)(7)(5)(20)
Change in fair value of related hedged items12 7 5 20 
Gain (loss) on closed derivatives (1)
1 (4)4 (4)
Mark-to-market—commodity contracts
5 7 (2)15 
Total derivative gain recognized in cost of sales2 4 8 12 
Selling, general and administrative expenses:
Mark-to-market—foreign currency contracts
— 1 1 (1)
Interest expense:
Cash flow hedging—interest rate contracts
— — (1)(1)
Total derivative gain (loss)$21 $(33)$54 $(54)
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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.