Hedging Transactions And Derivative Financial Instruments (Tables)

9 Months Ended

Oct. 01, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table summarizes the notional values as of October 1, 2021 and October 2, 2020 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three and nine-month periods ended October 1, 2021 and October 2, 2020 ($ in millions):


	Original Notional Amount		Notional Amount Outstanding		Gain (Loss) Recognized in OCI		Amounts Reclassified from OCI
For the Three-Month Period Ended October 1, 2021:
Net investment hedges:
Foreign currency contracts	$	2,875	$	2,000	$	34	$	—
Foreign currency denominated debt	4,864		4,864		52		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		87		(90)
Interest rate swaps	850		—		—		1
Total	$	12,589	$	10,864	$	173	$	(89)

For the Three-Month Period Ended October 2, 2020:
Net investment hedges:
Foreign currency contracts:	$	2,875	$	2,000	$	(57)	$	—
Foreign currency denominated debt	6,619		6,619		(209)		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		(305)		166
Interest rate swaps	850		—		—		1
Total	$	14,344	$	12,619	$	(571)	$	167

For the Nine-Month Period Ended October 1, 2021:
Net investment hedges:
Foreign currency contracts	$	2,875	$	2,000	$	100	$	—
Foreign currency denominated debt	4,864		4,864		236		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		389		(207)
Interest rate swaps	850		—		—		2
Total	$	12,589	$	10,864	$	725	$	(205)

For the Nine-Month Period Ended October 2, 2020:
Net investment hedges:
Foreign currency contracts:	$	2,875	$	2,000	$	10	$	—
Foreign currency denominated debt	6,619		6,619		(242)		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		(8)		182
Interest rate swaps	850		—		—		2
Total	$	14,344	$	12,619	$	(240)	$	184

Schedule of Notional Amounts of Outstanding Derivative Positions


	Original Notional Amount		Notional Amount Outstanding		Gain (Loss) Recognized in OCI		Amounts Reclassified from OCI
For the Three-Month Period Ended October 1, 2021:
Net investment hedges:
Foreign currency contracts	$	2,875	$	2,000	$	34	$	—
Foreign currency denominated debt	4,864		4,864		52		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		87		(90)
Interest rate swaps	850		—		—		1
Total	$	12,589	$	10,864	$	173	$	(89)

For the Three-Month Period Ended October 2, 2020:
Net investment hedges:
Foreign currency contracts:	$	2,875	$	2,000	$	(57)	$	—
Foreign currency denominated debt	6,619		6,619		(209)		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		(305)		166
Interest rate swaps	850		—		—		1
Total	$	14,344	$	12,619	$	(571)	$	167

For the Nine-Month Period Ended October 1, 2021:
Net investment hedges:
Foreign currency contracts	$	2,875	$	2,000	$	100	$	—
Foreign currency denominated debt	4,864		4,864		236		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		389		(207)
Interest rate swaps	850		—		—		2
Total	$	12,589	$	10,864	$	725	$	(205)

For the Nine-Month Period Ended October 2, 2020:
Net investment hedges:
Foreign currency contracts:	$	2,875	$	2,000	$	10	$	—
Foreign currency denominated debt	6,619		6,619		(242)		—
Cash flow hedges:
Foreign currency contracts	4,000		4,000		(8)		182
Interest rate swaps	850		—		—		2
Total	$	14,344	$	12,619	$	(240)	$	184

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Consolidated Condensed Balance Sheets as follows ($ in millions):


	October 1, 2021		December 31, 2020




Derivative liabilities:
Accrued expenses and other liabilities	$	133	$	622

Nonderivative hedging instruments:
Long-term debt	4,864		4,573