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Derivative Instruments and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 28, 2019
Derivative Instruments and Fair Value Measurements [Abstract]  
Schedule of Total Notional Amounts of Derivative Instruments
Total notional amounts of the Company’s derivative instruments as of September 28, 2019 and December 29, 2018 were as follows:
(millions)
September 28,
2019
December 29,
2018
Foreign currency exchange contracts
$
2,250

$
1,863

Cross-currency contracts
1,480

1,197

Interest rate contracts
1,856

1,608

Commodity contracts
319

417

Total
$
5,905

$
5,085
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 September 28, 2019 and December 29, 2018:
Derivatives designated as hedging instruments
 
September 28, 2019
 
December 29, 2018
(millions)
Level 1
Level 2
Total
 
Level 1
Level 2
Total
Assets:
 
 
 
 
 
 
 
Cross-currency contracts:
 
 
 
 
 
 
 
Other assets
$
—

$
143

$
143

 
$
—

$
79

$
79

Interest rate contracts:
 
 

 
 
 

Other assets (a)
—

11

11

 
—

17

17

Total assets
$
—

$
154

$
154


$
—

$
96

$
96

Liabilities:
 
 

 
 
 

Interest rate contracts:
 
 

 
 
 

Other liabilities (a)
—

(13
)
(13
)
 
—

(22
)
(22
)
Total liabilities
$
—

$
(13
)
$
(13
)

$
—

$
(22
)
$
(22
)

(a) The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $0.7 billion and $1.6 billion as of September 28, 2019 and December 29, 2018, respectively.
Derivatives not designated as hedging instruments
 
September 28, 2019
 
December 29, 2018
(millions)
Level 1
Level 2
Total
 
Level 1
Level 2
Total
Assets:
 
 
 
 
 
 
 
Foreign currency exchange contracts:
 
 
 
 
 
 
 
Other current assets
$
—

$
23

$
23

 
$
—

$
3

$
3

Commodity contracts:
 
 
 
 
 
 
 
Other current assets
4

—

4

 
3

—

3

Total assets
$
4

$
23

$
27


$
3

$
3

$
6

Liabilities:
 
 
 
 
 
 
 
Foreign currency exchange contracts:
 
 
 
 
 
 
 
Other current liabilities
$
—

$
(14
)
$
(14
)
 
$
—

$
(4
)
$
(4
)
Interest rate contracts:
 
 
 
 
 
 
 
Other liabilities
—

(13
)
(13
)
 
—

—

—

Commodity contracts:
 
 
 
 
 
 
 
Other current liabilities
(2
)
—

(2
)
 
(9
)
—

(9
)
Total liabilities
$
(2
)
$
(27
)
$
(29
)

$
(9
)
$
(4
)
$
(13
)
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 September 28, 2019 and December 29, 2018.
(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)
 
 
 
 
September 28,
2019
December 29,
2018
 
September 28,
2019
December 29,
2018
Interest rate contracts
 
Current maturities of long-term debt
 
$
—

$
503

 
$
—

$
3

Interest rate contracts
 
Long-term debt
 
$
3,114

$
3,354

 
$
27

$
(18
)
(a) The current maturities of hedged long-term debt includes $3 million of hedging adjustment on discontinued hedging relationships as of December 29, 2018. The hedged long-term debt includes $16 million and $(12) million of hedging adjustment on discontinued hedging relationships as of September 28, 2019 and December 29, 2018, respectively.
Schedule of Offsetting Assets
 
 
 
 
As of September 28, 2019:
  
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
$
181

$
(38
)
$
(9
)
$
134

Total liability derivatives
$
(42
)
$
38

$
—

$
(4
)

 
 
 
 
 
As of December 29, 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
$
102

$
(27
)
$
(2
)
$
73

Total liability derivatives
$
(35
)
$
27

$
—

$
(8
)
Schedule of Offsetting Liabilities
 
 
 
 
As of September 28, 2019:
  
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
$
181

$
(38
)
$
(9
)
$
134

Total liability derivatives
$
(42
)
$
38

$
—

$
(4
)

 
 
 
 
 
As of December 29, 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
$
102

$
(27
)
$
(2
)
$
73

Total liability derivatives
$
(35
)
$
27

$
—

$
(8
)
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 September 28, 2019 and September 29, 2018 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
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
 
Foreign currency denominated long-term debt
$
99

 
$
16

 
$
—

 
$
—

 
Cross-currency contracts
49

 
9

 
9

 
4

Interest expense
Total
$
148

 
$
25

 
$
9

 
$
4

 
Derivatives not designated as hedging instruments
(millions)
Location of gain
(loss) recognized
in income
Gain (loss)
recognized in
income
 
 
September 28,
2019
 
September 29,
2018
Foreign currency exchange contracts
COGS
$
7

 
$
1

Foreign currency exchange contracts
Other income (expense), net
—

 
2

Commodity contracts
COGS
(21
)
 
(2
)
Total
 
$
(14
)

$
1


The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended September 28, 2019 and September 29, 2018 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
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
 
Foreign currency denominated long-term debt
$
115

 
$
89

 
$
—

 
$
—

 
Cross-currency contracts
64

 
36

 
25

 
10

Interest expense
Total
$
179

 
$
125

 
$
25

 
$
10

 
Derivatives not designated as hedging instruments
 
 
 
 
 
(millions)
Location of gain
(loss) recognized
in income
Gain (loss)
recognized in
income
 
 
September 28,
2019
 
September 29,
2018
Foreign currency exchange contracts
COGS
$
(3
)
 
$
8

Foreign currency exchange contracts
Other income (expense), net
(1
)
 
(2
)
Foreign currency exchange contracts
SGA
—

 
1

Commodity contracts
COGS
(13
)
 
(5
)
Total
 
$
(17
)
 
$
2

 
 
 
 
 

The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the quarters ended September 28, 2019 and September 29, 2018:
 
 
 
 
September 28, 2019
 
September 29, 2018
(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

 
$
72

 
Gain (loss) on fair value hedging relationships:
 
 
 
 
 
Interest contracts:
 
 
 
 
 
Hedged items
 
(5
)
 
9

 
Derivatives designated as hedging instruments
 
7

 
(9
)
 
 
 
 
 
 
 
 
Gain (loss) on cash flow hedging relationships:
 
 
 
 
 
Interest contracts:
 
 
 
 
 
Amount of gain (loss) reclassified from AOCI into income
 
1

 
(2
)

The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the year-to-date periods ended September 28, 2019 and September 29, 2018:
 
 
 
 
 
 
 
 
 
 
 
September 28, 2019
 
September 29, 2018
(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
 
$
221

 
$
213

 
Gain (loss) on fair value hedging relationships:
 
 
 
 
 
Interest contracts:
 
 
 
 
 
Hedged items
 
(42
)
 
34

 
Derivatives designated as hedging instruments
 
44

 
(30
)
 
 
 
 
 
 
 
 
Gain (loss) on cash flow hedging relationships:
 
 
 
 
 
Interest contracts:
 
 
 
 
 
Amount of gain (loss) reclassified from AOCI into income
 
(2
)
 
(6
)
Available-for-sale securities
The following is a summary of the carrying and market values of the Company's available for sale securities:
 
September 28, 2019
 
December 29, 2018
 
 
Unrealized
 
 
 
Unrealized
 
(millions)
Cost
Gain (Loss)
Market Value
 
Cost
Gain (Loss)
Market Value
Corporate bonds
$
—

$
—

$
—

 
$
59

$
—

$
59