Derivative Financial Instruments

12 Months Ended

Dec. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments [Text Block]

Note 16 : Derivative Financial Instruments

Volume of Derivative Activity

Total gross notional amounts for outstanding derivatives (recorded at fair value) at the end of each period were as follows:

(In Millions)	Dec 30, 2023		Dec 31, 2022		Dec 25, 2021
Foreign currency contracts	$	30,064	$	31,603	$	38,024
Interest rate contracts	18,363		16,011		15,209
Other	2,103		2,094		2,517
Total	$	50,530	$	49,708	$	55,750

The total notional amount of outstanding pay-variable, receive-fixed interest rate swaps was $12.0 billion as of December 30, 2023 and December 31, 2022.

Fair Value of Derivative Instruments in the Consolidated Balance Sheets

	December 30, 2023				December 31, 2022
(In Millions)	Assets1		Liabilities2		Assets1		Liabilities2
Derivatives designated as hedging instruments:
Foreign currency contracts3	$	255	$	142	$	142	$	290
Interest rate contracts	—		578		—		777
Total derivatives designated as hedging instruments	255		720		142		1,067
Derivatives not designated as hedging instruments:
Foreign currency contracts3	314		363		866		194
Interest rate contracts	261		36		266		12
Equity contracts	366		—		—		111
Total derivatives not designated as hedging instruments	941		399		1,132		317
Total derivatives	$	1,196	$	1,119	$	1,274	$	1,384

1Derivative assets are recorded as other assets, current and long-term.

2Derivative liabilities are recorded as other liabilities, current and long-term.

3A substantial majority of these instruments mature within 12 months.

Amounts Offset in the Consolidated Balance Sheets

Agreements subject to master netting arrangements with various counterparties, and cash and non-cash collateral posted under such agreements at the end of each period were as follows:

	December 30, 2023
							Gross Amounts Not Offset in the Balance Sheet
(In Millions)	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet		Net Amounts Presented in the Balance Sheet		Financial Instruments		Cash and Non-Cash Collateral Received or Pledged		Net Amount
Assets:
Derivative assets subject to master netting arrangements	$	1,047	$	—	$	1,047	$	(617)	$	(430)	$	—
Reverse repurchase agreements	2,554		—		2,554		—		(2,554)		—
Total assets	3,601		—		3,601		(617)		(2,984)		—
Liabilities:
Derivative liabilities subject to master netting arrangements	1,111		—		1,111		(617)		(399)		95
Total liabilities	$	1,111	$	—	$	1,111	$	(617)	$	(399)	$	95

	December 31, 2022
							Gross Amounts Not Offset in the Balance Sheet
(In Millions)	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet		Net Amounts Presented in the Balance Sheet		Financial Instruments		Cash and Non-Cash Collateral Received or Pledged		Net Amount
Assets:
Derivative assets subject to master netting arrangements	$	1,231	$	—	$	1,231	$	(546)	$	(682)	$	3
Reverse repurchase agreements	1,701		—		1,701		—		(1,701)		—
Total assets	2,932		—		2,932		(546)		(2,383)		3
Liabilities:
Derivative liabilities subject to master netting arrangements	1,337		—		1,337		(546)		(712)		79
Total liabilities	$	1,337	$	—	$	1,337	$	(546)	$	(712)	$	79

We obtain and secure available collateral from counterparties against obligations, including securities lending transactions and reverse repurchase agreements, when we deem it appropriate.

Derivatives in Cash Flow Hedging Relationships

The before-tax net gains or losses attributed to the effective portion of cash flow hedges recognized in other comprehensive income (loss) were $3 million net gains in 2023 ($910 million net losses in 2022 and $434 million net losses in 2021). Substantially all of our cash flow hedges are foreign currency contracts for all periods presented.

Amounts excluded from effectiveness testing were $221 million net losses in 2023 ($117 million net losses in 2022 and $19 million net losses in 2021).

For information on the unrealized holding gains (losses) on derivatives reclassified out of accumulated other comprehensive income (loss) into the Consolidated Statements of Income, see "Note 15: Other Comprehensive Income (Loss)" within the Notes to Consolidated Financial Statements.

Derivatives in Fair Value Hedging Relationships

The effects of derivative instruments designated as fair value hedges, recognized in interest and other, net for each period were as follows:

	Gains (Losses) Recognized in Statement of Income on Derivatives
Years Ended (In Millions)	Dec 30, 2023		Dec 31, 2022		Dec 25, 2021
Interest rate contracts	$	198	$	(1,551)	$	(723)
Hedged items	(198)		1,551		723
Total	$	—	$	—	$	—

The amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges for each period were as follows:

Line Item in the Consolidated Balance Sheets in Which the Hedged Item Is Included	Carrying Amount of the Hedged Item Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount Assets/(Liabilities)
(In Millions)	Dec 30, 2023		Dec 31, 2022		Dec 30, 2023		Dec 31, 2022
Long-term debt	$	(11,419)	$	(11,221)	$	578	$	776

Derivatives Not Designated as Hedging Instruments

The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for each period were as follows:

Years Ended (In Millions)	Location of Gains (Losses) Recognized in Income on Derivatives	Dec 30, 2023		Dec 31, 2022		Dec 25, 2021
Foreign currency contracts	Interest and other, net	$	106	$	1,492	$	677
Interest rate contracts	Interest and other, net	50		309		31
Other	Various	325		(502)		360
Total		$	481	$	1,299	$	1,068