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Hedging Transactions and Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments, Gain (Loss)
The following table summarizes the notional values as of September 30, 2022 and October 1, 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 nine-month periods ended September 30, 2022 and October 1, 2021 ($ in millions):
Original Notional AmountNotional Amount OutstandingGain (Loss) Recognized in OCIAmounts Reclassified from OCI
For the Three-Month Period Ended September 30, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $127 $— 
Foreign currency denominated debt5,522 5,522 174 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 214 (240)
Interest rate swaps1,600 — — — 
Total$14,997 $12,522 $515 $(240)
For the Three-Month Period Ended October 1, 2021:
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $34 $— 
Foreign currency denominated debt4,864 4,864 52 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 87 (90)
Interest rate swaps850 — — 
Total$12,589 $10,864 $173 $(89)
For the Nine-Month Period Ended September 30, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $394 $— 
Foreign currency denominated debt5,522 5,522 569 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 720 (580)
Interest rate swaps1,600 — — 
Total$14,997 $12,522 $1,683 $(578)
For the Nine-Month Period Ended October 1, 2021
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $100 $— 
Foreign currency denominated debt4,864 4,864 236 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 389 (207)
Interest rate swaps850 — — 
Total$12,589 $10,864 $725 $(205)
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table summarizes the notional values as of September 30, 2022 and October 1, 2021 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three and nine-month periods ended September 30, 2022 and October 1, 2021 ($ in millions):
Original Notional AmountNotional Amount OutstandingGain (Loss) Recognized in OCIAmounts Reclassified from OCI
For the Three-Month Period Ended September 30, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $127 $— 
Foreign currency denominated debt5,522 5,522 174 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 214 (240)
Interest rate swaps1,600 — — — 
Total$14,997 $12,522 $515 $(240)
For the Three-Month Period Ended October 1, 2021:
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $34 $— 
Foreign currency denominated debt4,864 4,864 52 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 87 (90)
Interest rate swaps850 — — 
Total$12,589 $10,864 $173 $(89)
For the Nine-Month Period Ended September 30, 2022:
Net investment hedges:
Cross-currency contracts$3,875 $3,000 $394 $— 
Foreign currency denominated debt5,522 5,522 569 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 720 (580)
Interest rate swaps1,600 — — 
Total$14,997 $12,522 $1,683 $(578)
For the Nine-Month Period Ended October 1, 2021
Net investment hedges:
Cross-currency contracts$2,875 $2,000 $100 $— 
Foreign currency denominated debt4,864 4,864 236 — 
Cash flow hedges:
Cross-currency contracts4,000 4,000 389 (207)
Interest rate swaps850 — — 
Total$12,589 $10,864 $725 $(205)
Schedule of Derivative and Non Derivative Instruments in Consolidated Condensed Balance Sheets
The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Consolidated Condensed Balance Sheets as follows ($ in millions):
September 30, 2022December 31, 2021
Derivative assets:
Other long-term assets$1,164 $50 
Nonderivative hedging instruments:
Long-term debt5,522 3,883