Derivative Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Fair Value Measurements [Abstract]

Schedule of Total Notional Amounts of Derivative Instruments

(millions)	June 30, 2018		December 30, 2017
Foreign currency exchange contracts	$	1,518	$	2,172
Cross-currency contracts	696		—
Interest rate contracts	1,468		2,250
Commodity contracts	348		544
Total	$	4,030	$	4,966

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of June 30, 2018 and December 30, 2017:

Derivatives designated as hedging instruments

	June 30, 2018								December 30, 2017
(millions)	Level 1		Level 2			Total			Level 1		Level 2			Total
Assets:
Cross-currency contracts
Other current assets	$	—	$	27		$	27		$	—	$	—		$	—
Interest rate contracts:
Other assets (a)	—		4			4			—		—			—
Total assets	$	—	$	31		$	31		$	—	$	—		$	—
Liabilities:
Interest rate contracts:
Other liabilities (a)	—		(29		)	(29		)	—		(54		)	(54		)
Total liabilities	$	—	$	(29	)	$	(29	)	$	—	$	(54	)	$	(54	)

(a) The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $1.5 billion and $2.3 billion as of June 30, 2018 and December 30, 2017, respectively.

Derivatives not designated as hedging instruments

	June 30, 2018									December 30, 2017
(millions)	Level 1			Level 2			Total			Level 1			Level 2			Total
Assets:
Foreign currency exchange contracts:
Other current assets	$	—		$	26		$	26		$	—		$	10		$	10
Commodity contracts:
Other current assets	3			—			3			6			—			6
Total assets	$	3		$	26		$	29		$	6		$	10		$	16
Liabilities:
Foreign currency exchange contracts:
Other current liabilities	$	—		$	(14	)	$	(14	)	$	—		$	(14	)	$	(14	)
Commodity contracts:
Other current liabilities	(10		)	—			(10		)	$	(7	)	$	—		$	(7	)
Total liabilities	$	(10	)	$	(14	)	$	(24	)	$	(7	)	$	(14	)	$	(21	)

Schedule of Derivative Instruments in Statement of Financial Position Fair Value

The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of June 30, 2018 and December 30, 2017.

(millions)	Line Item in the Consolidated Balance Sheet in which the hedged item is included	Carrying amount of the hedged liabilities				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a)
		June 30, 2018		December 30, 2017		June 30, 2018			December 30, 2017
Interest rate contracts	Current maturities of long-term debt	$	—	$	402	$	—		$	2
Interest rate contracts	Long-term debt	$	3,357	$	3,481	$	(45	)	$	(22	)

(a) The current maturities of hedged long-term debt includes $2 million of hedging adjustment on discontinued hedging relationships as of December 30, 2017. The hedged long-term debt includes $(19) million and $32 millionof hedging adjustment on discontinued hedging relationships as of June 30, 2018 and December 30, 2017, respectively.

Schedule of Offsetting Assets

As of June 30, 2018:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	60		$	(28	)	$	—	$	32
Total liability derivatives	$	(53	)	$	28		$	25	$	—

As of December 30, 2017:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	16		$	(15	)	$	—	$	1
Total liability derivatives	$	(75	)	$	15		$	37	$	(23	)

Schedule of Offsetting Liabilities

As of June 30, 2018:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	60		$	(28	)	$	—	$	32
Total liability derivatives	$	(53	)	$	28		$	25	$	—

As of December 30, 2017:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	16		$	(15	)	$	—	$	1
Total liability derivatives	$	(75	)	$	15		$	37	$	(23	)

Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income

The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended June 30, 2018 and July 1, 2017 was as follows:

Derivatives and non-derivatives in net investment hedging relationships

(millions)	Gain (loss) recognized in AOCI					Gain (loss) excluded from assessment of hedge effectiveness				Location of gain (loss) in income of excluded component
	June 30, 2018		July 1, 2017			June 30, 2018		July 1, 2017
Foreign currency denominated long-term debt	$	146	$	(157	)	$	—	$	—
Cross-currency contracts	35		—			$	3	—		Other income (expense), net
Total	$	181	$	(157	)	$	3	$	—

Derivatives not designated as hedging instruments

(millions)	Location of gain (loss) recognized in income	Gain (loss) recognized in income
		June 30, 2018			July 1, 2017
Foreign currency exchange contracts	COGS	$	4		$	(4	)
Foreign currency exchange contracts	Other income (expense), net	—			(3		)
Foreign currency exchange contracts	SG&A	—			(1		)
Commodity contracts	COGS	(8		)	10
Total		$	(4	)	$	2

The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended June 30, 2018 and July 1, 2017 was as follows:

Derivatives and non-derivatives in net investment hedging relationships

(millions)	Gain (loss) recognized in AOCI					Gain (loss) excluded from assessment of hedge effectiveness				Location of gain (loss) in income of excluded component
	June 30, 2018		July 1, 2017			June 30, 2018		July 1, 2017
Foreign currency denominated long-term debt	$	73	$	(182	)	$	—	$	—
Cross-currency contracts	27		—			6		—		Other income (expense), net
Total	$	100	$	(182	)	$	6	$	—

Derivatives not designated as hedging instruments

(millions)	Location of gain (loss) recognized in income	Gain (loss) recognized in income
		June 30, 2018			July 1, 2017
Foreign currency exchange contracts	COGS	$	7		$	(13	)
Foreign currency exchange contracts	Other income (expense), net	(4		)	(8		)
Foreign currency exchange contracts	SGA	1			(1		)
Commodity contracts	COGS	(3		)	(3		)
Commodity contracts	SGA	—			1
Total		$	1		$	(24	)

The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the quarters ended June 30, 2018 and July 1, 2017:

		June 30, 2018			July 1, 2017
(millions)		Interest Expense			Interest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded		$	72		$	63
	Gain (loss) on fair value hedging relationships:
	Interest contracts:
	Hedged items	(7		)	(3		)
	Derivatives designated as hedging instruments	7			8
	Gain (loss) on cash flow hedging relationships:
	Interest contracts:
	Amount of gain (loss) reclassified from AOCI into income	(2		)	(3		)
	Foreign exchange contracts:
	Amount of gain (loss) reclassified from AOCI into income	—			—

The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the year-to-date periods ended June 30, 2018 and July 1, 2017:

		June 30, 2018			July 1, 2017
(millions)		Interest Expense			COGS		Interest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded		$	141		$	4,038	$	124
	Gain (loss) on fair value hedging relationships:
	Interest contracts:
	Hedged items	25			—		6
	Derivatives designated as hedging instruments	(21		)	—		4
	Gain (loss) on cash flow hedging relationships:
	Interest contracts:
	Amount of gain (loss) reclassified from AOCI into income	(4		)	—		(5		)
	Foreign exchange contracts:
	Amount of gain (loss) reclassified from AOCI into income	—			1		—