Derivative Financial Instruments	9 Months Ended
Oct. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Note 18. Derivative Financial Instruments We use derivative financial instruments to manage interest rate risk. Our policy is not to use derivative instruments for trading or speculative purposes. We have written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedge accounting. All derivatives are recorded at fair value in the Consolidated Balance Sheets. Our derivatives are designated as cash flow hedges and the effective changes in fair values are recorded in Accumulated other comprehensive loss and are included in unrealized gains (losses) until the underlying hedged item is recognized in earnings. We use interest rate swap agreements to manage exposure to interest rate risks. We do not use interest rate swap agreements for speculative or trading purposes. The gain or loss on the interest rate swaps that qualify as derivatives is recorded in Accumulated other comprehensive loss and is subsequently recognized as Interest expense, net in the Consolidated Statements of Operations when the hedged exposure affects earnings. If the related debt or the interest rate swap is terminated prior to maturity, the fair value of the interest rate swap recorded in Accumulated other comprehensive loss may be recognized in the Consolidated Statements of Operations based on an assessment of the agreements at the time of termination. On March 31, 2021, we entered into eight interest rate swap agreements (the “Swap Agreements”) with several financial institutions for a combined notional value of $560 million. The effect of the Swap Agreements is to convert a portion of the variable interest rate obligations based on three-month LIBOR with a minimum rate of 0.50% per annum to a base fixed weighted average rate of 0.9289% over terms ranging from two to four years remaining. The Swap Agreements are adjusted to fair value on a quarterly basis. The estimated fair value is based on Level 2 inputs primarily including the forward LIBOR curve available to swap dealers. Contract gains recognized in other comprehensive income (loss) totaled $14 million and $38 million for the three and nine months ended October 1, 2022, respectively. Contract gains or losses recognized in other comprehensive income (loss) were immaterial for the three and nine months ended October 2, 2021. Amounts reclassified from Accumulated other comprehensive loss into earnings were not material for any of the periods presented. The fair value of the Swap Agreements as of October 1, 2022 was $46 million, of which $18 million was recognized in Other current assets and $28 million was recognized in Other assets. The fair value of the Swap Agreements as of October 2, 2021 was immaterial. Unrealized gains expected to be reclassified from Accumulated other comprehensive loss into earnings in the next 12 months are estimated to be $17 million as of October 1, 2022.

Derivative Financial Instruments

9 Months Ended

Oct. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 18. Derivative Financial Instruments

We use derivative financial instruments to manage interest rate risk. Our policy is not to use derivative instruments for trading or speculative purposes. We have written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedge accounting.

All derivatives are recorded at fair value in the Consolidated Balance Sheets. Our derivatives are designated as cash flow hedges and the effective changes in fair values are recorded in Accumulated other comprehensive loss and are included in unrealized gains (losses) until the underlying hedged item is recognized in earnings.

We use interest rate swap agreements to manage exposure to interest rate risks. We do not use interest rate swap agreements for speculative or trading purposes. The gain or loss on the interest rate swaps that qualify as derivatives is recorded in Accumulated other comprehensive loss and is subsequently recognized as Interest expense, net in the Consolidated Statements of Operations when the hedged exposure affects earnings. If the related debt or the interest rate swap is terminated prior to maturity, the fair value of the interest rate swap recorded in Accumulated other comprehensive loss may be recognized in the Consolidated Statements of Operations based on an assessment of the agreements at the time of termination.

On March 31, 2021, we entered into eight interest rate swap agreements (the “Swap Agreements”) with several financial institutions for a combined notional value of $560 million. The effect of the Swap Agreements is to convert a portion of the variable interest rate obligations based on three-month LIBOR with a minimum rate of 0.50% per annum to a base fixed weighted average rate of 0.9289% over terms ranging from two to four years remaining. The Swap Agreements are adjusted to fair value on a quarterly basis. The estimated fair value is based on Level 2 inputs primarily including the forward LIBOR curve available to swap dealers. Contract gains recognized in other comprehensive income (loss) totaled $14 million and $38 million for the three and nine months ended October 1, 2022, respectively. Contract gains or losses recognized in other comprehensive income (loss) were immaterial for the three and nine months ended October 2, 2021. Amounts reclassified from Accumulated other comprehensive loss into earnings were not material for any of the periods presented. The fair value of the Swap Agreements as of October 1, 2022 was $46 million, of which $18 million was recognized in Other current assets and $28 million was recognized in Other assets. The fair value of the Swap Agreements as of October 2, 2021 was immaterial. Unrealized gains expected to be reclassified from Accumulated other comprehensive loss into earnings in the next 12 months are estimated to be $17 million as of October 1, 2022.