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Hedging Transactions and Derivative Financial Instruments (Tables)
6 Months Ended
Jul. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments, Gain (Loss)
The following table summarizes the notional values as of July 1, 2022 and July 2, 2021 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 six-month periods ended July 1, 2022 and July 2, 2021 ($ in millions):
Original Notional AmountNotional Amount OutstandingGain (Loss) Recognized in OCIAmounts Reclassified from OCI
For the Three-Month Period Ended July 1, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $216 $— 
Foreign currency denominated debt5,870 5,870 271 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 381 (224)
Interest rate swaps1,600 — — 
Total$15,345 $12,870 $868 $(223)
For the Three-Month Period Ended July 2, 2021:
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $43 $— 
Foreign currency denominated debt3,524 3,524 (36)— 
Cash flow hedges:
Cross-currency contracts4,000 4,000 192 35 
Interest rate swaps850 — — 
Total$11,249 $9,524 $199 $36 
For the Six-Month Period Ended July 1, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $267 $— 
Foreign currency denominated debt5,870 5,870 395 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 506 (340)
Interest rate swaps1,600 — — 
Total$15,345 $12,870 $1,168 $(338)
For the Six-Month Period Ended July 2, 2021
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $66 $— 
Foreign currency denominated debt3,524 3,524 184 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 302 (117)
Interest rate swaps850 — — 
Total$11,249 $9,524 $552 $(116)
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table summarizes the notional values as of July 1, 2022 and July 2, 2021 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three and six-month periods ended July 1, 2022 and July 2, 2021 ($ in millions):
Original Notional AmountNotional Amount OutstandingGain (Loss) Recognized in OCIAmounts Reclassified from OCI
For the Three-Month Period Ended July 1, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $216 $— 
Foreign currency denominated debt5,870 5,870 271 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 381 (224)
Interest rate swaps1,600 — — 
Total$15,345 $12,870 $868 $(223)
For the Three-Month Period Ended July 2, 2021:
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $43 $— 
Foreign currency denominated debt3,524 3,524 (36)— 
Cash flow hedges:
Cross-currency contracts4,000 4,000 192 35 
Interest rate swaps850 — — 
Total$11,249 $9,524 $199 $36 
For the Six-Month Period Ended July 1, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $267 $— 
Foreign currency denominated debt5,870 5,870 395 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 506 (340)
Interest rate swaps1,600 — — 
Total$15,345 $12,870 $1,168 $(338)
For the Six-Month Period Ended July 2, 2021
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $66 $— 
Foreign currency denominated debt3,524 3,524 184 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 302 (117)
Interest rate swaps850 — — 
Total$11,249 $9,524 $552 $(116)
Schedule of Derivative and Non Derivative Instruments in Consolidated Condensed Balance Sheets
The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Consolidated Condensed Balance Sheets as follows ($ in millions):
July 1, 2022December 31, 2021
Derivative assets:
Other long-term assets$823 $50 
Nonderivative hedging instruments:
Long-term debt5,870 3,883