Hedging Transactions and Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 30, 2012

Hedging Transactions and Derivative Financial Instruments

Derivative instruments, fair value, designated as hedging instruments

The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in millions):

		Fair Value1,2
Derivatives Designated as Hedging Instruments	Balance Sheet Location1	March 30, 2012		December 31, 2011
Assets
Foreign currency contracts	Prepaid expenses and other assets	$	176	$	170
Commodity contracts	Prepaid expenses and other assets	1		2
Interest rate swaps	Other assets	227		246
Total assets		$	404	$	418
Liabilities
Foreign currency contracts	Accounts payable and accrued expenses	$	37	$	41
Commodity contracts	Accounts payable and accrued expenses	2		1
Interest rate swaps	Other liabilities	2		—
Total liabilities		$	41	$	42

¹ All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments.

² Refer to Note 14 for additional information related to the estimated fair value.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions):

		Fair Value1,2
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location1	March 30, 2012		December 31, 2011
Assets
Foreign currency contracts	Prepaid expenses and other assets	$	117	$	29
Commodity contracts	Prepaid expenses and other assets	58		54
Other derivative instruments	Prepaid expenses and other assets	11		5
Total assets		$	186	$	88
Liabilities
Foreign currency contracts	Accounts payable and accrued expenses	$	55	$	116
Commodity contracts	Accounts payable and accrued expenses	28		47
Other derivative instruments	Accounts payable and accrued expenses	—		1
Total liabilities		$	83	$	164

¹ All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments.

² Refer to Note 14 for additional information related to the estimated fair value.

Derivative instruments, designated as hedging instruments, gain (loss) in statement of financial performance

The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months endedMarch 30, 2012 (in millions):

	Gain (Loss) Recognized in Other Comprehensive Income ("OCI")			Location of Gain (Loss) Recognized in Income1	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency contracts	$	(1	)	Net operating revenues	$	(21	)	$	1
Foreign currency contracts	26			Cost of goods sold	(6		)	—
Interest rate locks	—			Interest expense	(3		)	—
Commodity contracts	(1		)	Cost of goods sold	1			—
Total	$	24			$	(29	)	$	1

¹ The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income.

The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months endedApril 1, 2011 (in millions):

	Gain (Loss) Recognized in OCI			Location of Gain (Loss) Recognized in Income1	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency contracts	$	(36	)	Net operating revenues	$	(49	)	$	—
Foreign currency contracts	(2		)	Cost of goods sold	(1		)	—
Interest rate locks	—			Interest expense	(3		)	—
Commodity contracts	2			Cost of goods sold	(1		)	—
Total	$	(36	)		$	(54	)	$	—

¹ The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income.

Derivative instruments, fair value hedges, gain (loss) recognized in income

The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the three months endedMarch 30, 2012, and April 1, 2011 (in millions):

Fair Value Hedging Instruments	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		March 30, 2012			April 1, 2011
Interest rate swaps	Interest expense	$	(21	)	$	(48	)
Fixed-rate debt	Interest expense	39			53
Net impact to interest expense		$	18		$	5
Foreign currency contracts	Other income (loss) — net	40			—
Available-for-sale securities	Other income (loss) — net	(39		)	—
Net impact to other income (loss) — net		$	1		$	—
Net impact of fair value hedging instruments		$	19		$	5

Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the pretax impact that changes in the fair values of derivatives designated as net investment hedges had on AOCI during the three months endedMarch 30, 2012, and April 1, 2011 (in millions):

	Gain (Loss) Recognized in OCI
	March 30, 2012			April 1, 2011
Foreign currency contracts	$	(94	)	$	(2	)

Schedule of Derivative Instruments Not Designated as Hedging Instruments Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the three months endedMarch 30, 2012, and April 1, 2011 (in millions):

		Three Months Ended
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	March 30, 2012			April 1, 2011
Foreign currency contracts	Net operating revenues	$	(9	)	$	(3	)
Foreign currency contracts	Other income (loss) — net	112			109
Foreign currency contracts	Cost of goods sold	—			(6		)
Commodity contracts	Cost of goods sold	6			52
Commodity contracts	Selling, general and administrative expenses	19			—
Other derivative instruments	Selling, general and administrative expenses	16			8
Total		$	144		$	160