Hedging Transactions and Derivative Financial Instruments (Tables)

3 Months Ended

Apr. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

The following table summarizes the notional values as of April 1, 2022 and April 2, 2021 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three-month periods ended April 1, 2022 and April 2, 2021 ($ in millions):

	Original Notional Amount		Notional Amount Outstanding		Gain (Loss) Recognized in OCI		Amounts Reclassified from OCI
For the Three-Month Period Ended April 1, 2022:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	51	$	—
Foreign currency denominated debt	3,761		3,761		124		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		125		(116)
Interest rate swaps	1,600		—		—		1
Total	$	13,236	$	10,761	$	300	$	(115)
For the Three-Month Period Ended April 2, 2021:
Net investment hedges:
Cross-currency contracts:	$	2,875	$	2,000	$	23	$	—
Foreign currency denominated debt	3,783		3,783		220		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		110		(152)
Interest rate swaps	850		—		—		—
Total	$	11,508	$	9,783	$	353	$	(152)

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table summarizes the notional values as of April 1, 2022 and April 2, 2021 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three-month periods ended April 1, 2022 and April 2, 2021 ($ in millions):

	Original Notional Amount		Notional Amount Outstanding		Gain (Loss) Recognized in OCI		Amounts Reclassified from OCI
For the Three-Month Period Ended April 1, 2022:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	51	$	—
Foreign currency denominated debt	3,761		3,761		124		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		125		(116)
Interest rate swaps	1,600		—		—		1
Total	$	13,236	$	10,761	$	300	$	(115)
For the Three-Month Period Ended April 2, 2021:
Net investment hedges:
Cross-currency contracts:	$	2,875	$	2,000	$	23	$	—
Foreign currency denominated debt	3,783		3,783		220		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		110		(152)
Interest rate swaps	850		—		—		—
Total	$	11,508	$	9,783	$	353	$	(152)

Schedule of Derivative and Non Derivative Instruments in Consolidated Condensed Balance Sheets

The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Consolidated Condensed Balance Sheets as follows ($ in millions):

	April 1, 2022		December 31, 2021
Derivative assets:
Other long-term assets	$	226	$	50
Nonderivative hedging instruments:
Long-term debt	3,761		3,883