Derivative Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Total Notional Amounts of the Company's Derivative Instruments

(millions)	2019		2018
Foreign currency exchange contracts	$	2,628	$	1,863
Cross-currency contracts	1,540		1,197
Interest rate contracts	1,871		1,608
Commodity contracts	524		417
Total	$	6,563	$	5,085

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of December 28, 2019 and December 29, 2018:

Derivatives designated as hedging instruments

	2019								2018
(millions)	Level 1		Level 2			Total			Level 1		Level 2			Total
Assets:
Cross currency contracts:
Other current assets	$	—	$	45		$	45		$	—	$	—		$	—
Other Assets	—		40			40			—		79			79
Interest rate contracts (a):
Other current assets	—		7			7			—		—			—
Other assets	—		4			4			—		17			17
Total assets	$	—	$	96		$	96		$	—	$	96		$	96
Liabilities:
Interest rate contracts (a):
Other current liabilities	$	—	$	(4	)	$	(4	)	$	—	$	—		$	—
Other liabilities	—		—			—			—		(22		)	(22		)
Total liabilities	$	—	$	(4	)	$	(4	)	$	—	$	(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 December 28, 2019 and December 29, 2018, respectively.

Derivatives not designated as hedging instruments

	2019									2018
(millions)	Level 1			Level 2			Total			Level 1			Level 2			Total
Assets:
Foreign currency exchange contracts:
Other current assets	$	—		$	12		$	12		$	—		$	3		$	3
Commodity contracts:
Other current assets	9			—			9			3			—			3
Total assets	$	9		$	12		$	21		$	3		$	3		$	6
Liabilities:
Foreign currency exchange contracts:
Other current liabilities	$	—		(18		)	$	(18	)	$	—		$	(4	)	$	(4	)
Interest rate contracts:
Other liabilities	—			(13		)	(13		)	—			—			—
Commodity contracts:
Other current liabilities	(1		)	—			(1		)	(9		)	—			(9		)
Total liabilities	$	(1	)	$	(31	)	$	(32	)	$	(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 December 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)
		December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Interest rate contracts	Current maturities of long-term debt	$	493	$	503	$	—	$	3
Interest rate contracts	Long-term debt	$	2,643	$	3,354	$	19	$	(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 $15 million and $(12) million of hedging adjustment on discontinued hedging relationships as of December 28, 2019 and December 29, 2018, respectively.

Offsetting Assets

As of December 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	$	117		$	(27	)	$	(7	)	$	83
Total liability derivatives	$	(36	)	$	27		$	—		$	(9	)

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	)

Offsetting Liabilities

As of December 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	$	117		$	(27	)	$	(7	)	$	83
Total liability derivatives	$	(36	)	$	27		$	—		$	(9	)

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 Instrument on the Consolidated Statement of Income

The effect of derivative instruments on the Consolidated Statement of Income for the years ended December 28, 2019 and December 29, 2018 were 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
	2019		2018		2019		2018
Foreign currency denominated long-term debt	$	60	$	129	$	—	$	—
Cross-currency contracts	6		79		34		16		Interest expense
Total	$	66	$	208	$	34	$	16

Derivatives not designated as hedging instruments
(millions)	Location of gain (loss) recognized in income	Gain (loss) recognized in income
		2019			2018
Foreign currency exchange contracts	COGS	$	(16	)	$	19
Foreign currency exchange contracts	SGA	(2		)	1
Foreign currency exchange contracts	OIE	(4		)	—
Commodity contracts	COGS	4			(23		)
Commodity contracts	SGA	—			—
Total		$	(18	)	$	(3	)

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

		December 28, 2019			December 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		$	284		$	287
	Gain (loss) on fair value hedging relationships:
	Interest contracts:
	Hedged items	(33		)	(5		)
	Derivatives designated as hedging instruments	37			9
	Gain (loss) on cash flow hedging relationships:
	Interest contracts:
	Amount of gain (loss) reclassified from AOCI into income	(4		)	(8		)
	Foreign exchange contracts:
	Amount of gain (loss) reclassified from AOCI into income	—			—

Available-for-sale securities

The following is a summary of the carrying and market values of the Company's available for sale securities:

	2019						2018
(millions)	Cost		Unrealized Gain (Loss)		Market Value		Cost		Unrealized Gain/(Loss)		Market Value
Corporate Bonds	$	—	$	—	$	—	$	59	$	—	$	59