Financial Instruments (Tables)

12 Months Ended

Jun. 28, 2014

Securities categorized as available-for-sale are stated at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amortized cost, unrealized gains and losses, and fair market values of the company's investment securities available for sale at June 28, 2014 are summarized as follows:



	June 28, 2014
In millions	Amortized Cost	Unrealized Gain / (Loss)	Fair Market Value
Available-for-sale⁽¹⁾
Commercial Paper	15	—	15
Corporate Note	72	—	72
Total	87	—	87

⁽¹⁾ Categorized as Level 1: Observable input such as quoted prices in active markets for identical assets or liabilities

Aggregate Notional Dollar Amount Of Derivatives

The notional values of the various derivative instruments used by the company are summarized in the following table:



In millions	June 28, 2014		June 29, 2013		Hedge Coverage (Number of Months)
Commodity contracts
Commodity future contracts¹
Grains and oilseeds	$	47	$	34	11
Energy	30		29		23
Other commodities	7		20		8

¹ The notional values of commodity futures contracts are determined by the initial cost of the contract.

Fair Value Of The Long Term Debt Including The Current Portion

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value must be categorized into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement.

The carrying amounts of cash and equivalents, trade accounts receivables, accounts payable, derivative instruments and notes payable approximate fair values due to their short-term nature and are considered Level 1 based on the valuation inputs. Available-for-sale marketable securities values are derived solely from Level 1 inputs. The fair value of the company’s long-term debt (considered Level 2 based on the valuation inputs used), including the current portion, is estimated using discounted cash flows based on the company’s current incremental borrowing rates for similar types of borrowing arrangements.



	June 28, 2014				June 29, 2013
In millions	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Long-term debt, including current portion	$	971	$	944	$	981	$	951

Information Relating To Cash Flow Hedges, Net Investment Hedges, Fair Value Hedges And Other Derivatives Not Designated As Hedging Instruments

Information related to our cash flow hedges and other derivatives not designated as hedging instruments for the periods ended June 28, 2014, June 29, 2013, and June 30, 2012 follows:



	Interest Rate Contracts							Foreign Exchange Contracts							Commodity Contracts									Total
In millions	June 28, 2014		June 29, 2013		June 30, 2012			June 28, 2014		June 29, 2013		June 30, 2012			June 28, 2014			June 29, 2013			June 30, 2012			June 28, 2014			June 29, 2013			June 30, 2012
Cash Flow Derivatives
Amount of gain (loss) recognized in other comprehensive income (OCI)¹	$	—	$	—	$	(8	)	$	—	$	—	$	—		$	(1	)	$	6		$	13		$	(1	)	$	6		$	5
Amount of gain (loss) reclassified from AOCI into earnings^{1, 2}	—		—		(3		)	—		—		2			(2		)	18			2			(2		)	18			1
Amount of ineffectiveness recognized in earnings^{3, 4}	—		—		—			—		—		(2		)	1			(1		)	2			1			(1		)	—
Amount of gain (loss) expected to be reclassified into earnings during the next twelve months	—		—		—			—		—		—			—			(2		)	10			—			(2		)	10
Net Investment Derivatives
Amount of gain (loss) recognized in OCI¹	—		—		—			—		—		604			—			—			—			—			—			604
Amount of gain (loss) recognized from OCI into earnings⁶	—		—		—			—		—		(446		)	—			—			—			—			—			(446		)
Amount of gain (loss) recognized from OCI into spin-off dividend⁷	—		—		—			—		—		324			—			—			—			—			—			324
Fair Value Derivatives
Amount of derivative gain (loss) recognized in earnings⁵	—		—		1			—		—		—			—			—			—			—			—			1
Amount of hedged item gain (loss) recognized in earnings⁵	—		—		4			—		—		—			—			—			—			—			—			4
Derivatives Not Designated as Hedging Instruments
Amount of gain (loss) recognized in Cost of sales	—		—		—			—		—		—			4			(2		)	(2		)	4			(2		)	(2		)
Amount of gain recognized in SG&A	—		—		—			—		—		(15		)	2			2			—			2			2			(15		)

¹ Effective Portion.

² Gain (loss) reclassified from AOCI into earnings is reported in Interest expense or Debt extinguishment costs, for interest rate swaps, in Selling, general, and administrative (SG&A) expenses for foreign exchange contracts and in Cost of sales for commodity contracts.

³ Gain (loss) recognized in earnings is related to the ineffective portion and amounts excluded from the assessment of hedge effectiveness.

⁴ Gain (loss) recognized in earnings is reported in Interest expense for foreign exchange contract and SG&A expenses for commodity contracts.

⁵ The amount of gain (loss) recognized in earnings on the derivative contracts and the related hedged item is reported in Interest expense or Debt extinguishment costs, for the interest rate contracts and SG&A for the foreign exchange contracts.

⁶ The gain (loss) recognized from OCI into earnings is reported in Gain on sale of discontinued operations.

⁷ The gain (loss) recognized from OCI into the spin-off dividend is reported in Retained earnings as a result of the spin-off.