HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 28, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivative instruments designated and qualified as part of hedging relationship

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	June 28, 2024		December 31, 2023
Assets:
Foreign currency contracts	Prepaid expenses and other current assets	$	232	$	109
Foreign currency contracts	Other noncurrent assets	38		13
Interest rate contracts	Prepaid expenses and other current assets	7		—
Interest rate contracts	Other noncurrent assets	14		50
Total assets		$	291	$	172
Liabilities:
Foreign currency contracts	Accounts payable and accrued expenses	$	20	$	111
Foreign currency contracts	Other noncurrent liabilities	46		40
Commodity contracts	Accounts payable and accrued expenses	2		3
Interest rate contracts	Accounts payable and accrued expenses	1		5
Interest rate contracts	Other noncurrent liabilities	1,245		1,113
Total liabilities		$	1,314	$	1,272

1All of the Company’s derivative instruments are carried at fair value in our 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 16 for the net presentation of the Company’s derivative instruments.

2Refer to Note 16 for additional information related to the estimated fair value.

Derivatives Not Designated as Hedging Instruments

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	June 28, 2024		December 31, 2023
Assets:
Foreign currency contracts	Prepaid expenses and other current assets	$	125	$	91
Foreign currency contracts	Other noncurrent assets	1		3
Commodity contracts	Prepaid expenses and other current assets	6		5
Commodity contracts	Other noncurrent assets	1		—
Other derivative instruments	Prepaid expenses and other current assets	1		4
Total assets		$	134	$	103
Liabilities:
Foreign currency contracts	Accounts payable and accrued expenses	$	43	$	106
Foreign currency contracts	Other noncurrent liabilities	12		3
Commodity contracts	Accounts payable and accrued expenses	63		62
Commodity contracts	Other noncurrent liabilities	4		1
Other derivative instruments	Accounts payable and accrued expenses	—		4
Total liabilities		$	122	$	176

1All of the Company’s derivative instruments are carried at fair value in our 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 16 for the net presentation of the Company’s derivative instruments.

2Refer to Note 16 for additional information related to the estimated fair value.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) and Other Comprehensive Income (OCI)

The following tables present the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions):

	Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income	Gain (Loss) Reclassified from AOCI into Income
Three Months Ended June 28, 2024
Foreign currency contracts	$	160	Net operating revenues	$	(1)
Foreign currency contracts	9		Cost of goods sold	6
Foreign currency contracts	—		Interest expense	(1)
Foreign currency contracts	(9)		Other income (loss) — net	2
Commodity contracts	(3)		Cost of goods sold	(2)
Interest rate contracts	1		Interest expense	—
Total	$	158		$	4
Three Months Ended June 30, 2023
Foreign currency contracts	$	(22)	Net operating revenues	$	(7)
Foreign currency contracts	13		Cost of goods sold	4
Foreign currency contracts	—		Interest expense	(1)
Foreign currency contracts	22		Other income (loss) — net	3
Commodity contracts	(9)		Cost of goods sold	(3)
Total	$	4		$	(4)

	Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income	Gain (Loss) Reclassified from AOCI into Income
Six Months Ended June 28, 2024
Foreign currency contracts	$	208	Net operating revenues	$	(18)
Foreign currency contracts	20		Cost of goods sold	9
Foreign currency contracts	—		Interest expense	(2)
Foreign currency contracts	(24)		Other income (loss) — net	(26)
Commodity contracts	(2)		Cost of goods sold	(3)
Interest rate contracts	2		Interest expense	—
Total	$	204		$	(40)
Six Months Ended June 30, 2023
Foreign currency contracts	$	(58)	Net operating revenues	$	(6)
Foreign currency contracts	17		Cost of goods sold	8
Foreign currency contracts	—		Interest expense	(2)
Foreign currency contracts	9		Other income (loss) — net	3
Commodity contracts	(11)		Cost of goods sold	(6)
Total	$	(43)		$	(3)

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables summarize the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions):

Hedging Instruments and Hedged Items	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Three Months Ended
		June 28, 2024		June 30, 2023
Interest rate contracts	Interest expense	$	(19)	$	(102)
Fixed-rate debt	Interest expense	20		131
Net impact of fair value hedging instruments		$	1	$	29

Hedging Instruments and Hedged Items	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Six Months Ended
		June 28, 2024		June 30, 2023
Interest rate contracts	Interest expense	$	(164)	$	106
Fixed-rate debt	Interest expense	167		(91)
Net impact of fair value hedging instruments		$	3	$	15

The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships (in millions):

					Cumulative Amount of Fair Value Hedging Adjustments1
	Carrying Values of Hedged Items				Included in the Carrying Values of Hedged Items				Remaining for Which Hedge Accounting Has Been Discontinued
Balance Sheet Location of Hedged Items	June 28, 2024		December 31, 2023		June 28, 2024		December 31, 2023		June 28, 2024		December 31, 2023
Current maturities of long-term debt	$	—	$	552	$	—	$	1	$	—	$	—
Long-term debt	11,767		12,186		(1,258)		(1,135)		146		162

1Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations.

Notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges

The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges (in millions):

	Notional Values				Gain (Loss) Recognized in OCI
	as of				Three Months Ended				Six Months Ended
	June 28, 2024		December 31, 2023		June 28, 2024		June 30, 2023		June 28, 2024		June 30, 2023
Foreign currency contracts	$	360	$	150	$	22	$	(1)	$	24	$	(1)
Foreign currency denominated debt	12,609		12,437		85		(80)		357		(234)
Total	$	12,969	$	12,587	$	107	$	(81)	$	381	$	(235)

Derivative Instruments, Not Designated as Hedging Instruments, Gain (Loss) in Earnings

The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions):

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Three Months Ended
		June 28, 2024		June 30, 2023
Foreign currency contracts	Net operating revenues	$	58	$	(10)
Foreign currency contracts	Cost of goods sold	(22)		23
Foreign currency contracts	Other income (loss) — net	(96)		11
Commodity contracts	Cost of goods sold	(49)		(84)
Other derivative instruments	Selling, general and administrative expenses	6		1
Total		$	(103)	$	(59)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Six Months Ended
		June 28, 2024		June 30, 2023
Foreign currency contracts	Net operating revenues	$	119	$	(17)
Foreign currency contracts	Cost of goods sold	(8)		51
Foreign currency contracts	Other income (loss) — net	(58)		—
Commodity contracts	Cost of goods sold	(68)		(130)
Other derivative instruments	Selling, general and administrative expenses	12		4
Total		$	(3)	$	(92)