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Financial Instruments - Derivative Financial Instruments and Hedging Activities (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jul. 03, 2022
Jul. 04, 2021
Jul. 03, 2022
Jul. 04, 2021
Derivative [Line Items]        
Amount of Gains/(Losses) Recognized in OID [1] $ (394) $ (65) $ (413) $ (23)
Amount of Gains/(Losses) Recognized in OCI 651 (248) 854 (35)
Amount of Gains/(Losses) Recognized in OCI [1] 1,432 (230) 1,868 230
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [2] 144 21 357 (238)
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1] 177 47 421 (182)
Designated as Hedging Instrument [Member] | Foreign currency short-term borrowings [Member]        
Derivative [Line Items]        
Amount of Gains/(Losses) Recognized in OCI [1],[3] 0 (11) 26 27
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[3] 0 0 0 0
Designated as Hedging Instrument [Member] | Foreign currency long-term debt [Member]        
Derivative [Line Items]        
Amount of Gains/(Losses) Recognized in OCI [1],[3] 48 (8) 70 48
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[3] 0 0 0 0
Derivative Financial Instruments Not Designated as Hedges [Member] | Foreign exchange contracts [Member]        
Derivative [Line Items]        
Amount of Gains/(Losses) Recognized in OID [1] (394) (65) (413) (23)
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]        
Derivative [Line Items]        
Amount of Gains/(Losses) Recognized in OCI [1],[4] 624 (258) 811 (56)
Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings [1],[5] 27 9 43 21
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[4] 119 13 314 (255)
Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing [1],[5] 25 8 43 18
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member]        
Derivative [Line Items]        
Amount of Gains/(Losses) on hedged item Recognized in OID [1] 66 (26) 222 1
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member]        
Derivative [Line Items]        
Amount of Gains/(Losses) on interest rate contract Recognized in OID [1] (66) 26 (222) (1)
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]        
Derivative [Line Items]        
Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings [1],[5] 59 36 (15) 35
Amount of Gains/(Losses) Recognized in OCI [1] 674 1 933 155
Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing [1],[5] 33 26 63 55
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1] $ 0 $ 0 $ 0 $ 0
[1] OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income
[2] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E.
[3] Short-term borrowings and long-term debt include foreign currency borrowings, which are used in net investment hedges. The short-term borrowings’ carrying value as of December 31, 2021 was $1.1 billion. The long-term debt carrying values as of July 3, 2022 and December 31, 2021 were $774 million and $844 million, respectively.
[4] The amounts reclassified from OCI into COS were:
a net gain of $68 million in the second quarter of 2022;
a net gain of $102 million in the first six months of 2022;
a net loss of $31 million in the second quarter of 2021; and
a net loss of $76 million in the first six months of 2021.
The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $725 million within the next 12 months into income. The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 21 years and relates to foreign currency debt.
[5] The amounts reclassified from OCI were reclassified into OID.