HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 28, 2025

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	Financial Statement Line Item Impacted1	March 28, 2025		December 31, 2024
Assets:
Foreign currency contracts	Prepaid expenses and other current assets	$	99	$	311
Foreign currency contracts	Other noncurrent assets	32		82
Commodity contracts	Prepaid expenses and other current assets	3		2
Interest rate contracts	Other noncurrent assets	45		27
Total assets		$	179	$	422
Liabilities:
Foreign currency contracts	Accounts payable and accrued expenses	$	41	$	14
Foreign currency contracts	Other noncurrent liabilities	61		39
Interest rate contracts	Accounts payable and accrued expenses	1		—
Interest rate contracts	Other noncurrent liabilities	859		922
Total liabilities		$	962	$	975

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	Financial Statement Line Item Impacted1	March 28, 2025		December 31, 2024
Assets:
Foreign currency contracts	Prepaid expenses and other current assets	$	58	$	152
Foreign currency contracts	Other noncurrent assets	12		8
Commodity contracts	Prepaid expenses and other current assets	6		7
Other derivative instruments	Prepaid expenses and other current assets	7		—
Total assets		$	83	$	167
Liabilities:
Foreign currency contracts	Accounts payable and accrued expenses	$	90	$	86
Foreign currency contracts	Other noncurrent liabilities	4		12
Commodity contracts	Accounts payable and accrued expenses	32		40
Other derivative instruments	Accounts payable and accrued expenses	—		6
Total liabilities		$	126	$	144

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 table presents 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		Financial Statement Line Item Impacted	Gain (Loss) Reclassified from AOCI into Income
Three Months Ended March 28, 2025
Foreign currency contracts	$	(269)	Net operating revenues	$	41
Foreign currency contracts	(7)		Cost of goods sold	3
Foreign currency contracts	—		Interest expense	(1)
Foreign currency contracts	(4)		Other income (loss) — net	24
Commodity contracts	3		Cost of goods sold	3
Interest rate contracts	—		Interest expense	(1)
Total	$	(277)		$	69
Three Months Ended March 29, 2024
Foreign currency contracts	$	48	Net operating revenues	$	(17)
Foreign currency contracts	11		Cost of goods sold	3
Foreign currency contracts	—		Interest expense	(1)
Foreign currency contracts	(15)		Other income (loss) — net	(28)
Commodity contracts	1		Cost of goods sold	(1)
Interest rate contracts	1		Interest expense	—
Total	$	46		$	(44)

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

The following table summarizes 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	Financial Statement Line Item Impacted	Gain (Loss) Recognized in Income
		Three Months Ended
		March 28, 2025		March 29, 2024
Interest rate contracts	Interest expense	$	80	$	(145)
Fixed-rate debt	Interest expense	(76)		147
Net impact of fair value hedging instruments		$	4	$	2

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	March 28, 2025		December 31, 2024		March 28, 2025		December 31, 2024		March 28, 2025		December 31, 2024
Long-term debt	$	12,251	$	11,824	$	(858)	$	(915)	$	122	$	130

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
	March 28, 2025		December 31, 2024		March 28, 2025		March 29, 2024
Foreign currency contracts	$	—	$	59	$	(1)	$	2
Foreign currency denominated debt	13,826		13,221		(605)		272
Total	$	13,826	$	13,280	$	(606)	$	274

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

The following table presents 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	Financial Statement Line Item Impacted	Gain (Loss) Recognized in Income
		Three Months Ended
		March 28, 2025		March 29, 2024
Foreign currency contracts	Net operating revenues	$	(71)	$	61
Foreign currency contracts	Cost of goods sold	21		14
Foreign currency contracts	Other income (loss) — net	29		38
Commodity contracts	Cost of goods sold	4		(19)
Other derivative instruments	Selling, general and administrative expenses	1		6
Total		$	(16)	$	100