Derivative Financial Instruments

3 Months Ended

Mar. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 12 : 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)	Mar 30, 2024		Dec 30, 2023
Foreign currency contracts	$	27,942	$	30,064
Interest rate contracts	18,611		18,363
Other	2,507		2,103
Total	$	49,060	$	50,530

The total notional amount of outstanding pay-variable, receive-fixed interest rate swaps was $12.0 billion as of March 30, 2024 and December 30, 2023.

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

	Mar 30, 2024				Dec 30, 2023
(In Millions)	Assets1		Liabilities2		Assets1		Liabilities2
Derivatives designated as hedging instruments:
Foreign currency contracts3	$	69	$	307	$	255	$	142
Interest rate contracts	—		723		—		578
Total derivatives designated as hedging instruments	$	69	$	1,030	$	255	$	720
Derivatives not designated as hedging instruments:
Foreign currency contracts3	$	391	$	65	$	314	$	363
Interest rate contracts	285		9		261		36
Equity contracts	34		—		366		—
Total derivatives not designated as hedging instruments	$	710	$	74	$	941	$	399
Total derivatives	$	779	$	1,104	$	1,196	$	1,119

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 Condensed 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:

	Mar 30, 2024
							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	$	632	$	—	$	632	$	(350)	$	(282)	$	—
Reverse repurchase agreements	2,370		—		2,370		—		(2,370)		—
Total assets	$	3,002	$	—	$	3,002	$	(350)	$	(2,652)	$	—
Liabilities:
Derivative liabilities subject to master netting arrangements	$	1,097	$	—	$	1,097	$	(350)	$	(620)	$	127
Total liabilities	$	1,097	$	—	$	1,097	$	(350)	$	(620)	$	127

	Dec 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

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 cash flow hedges recognized in other comprehensive income (loss) were $431 million net loss in the first three months of 2024 ($53 million net gains in the first three months of 2023). Substantially all of our cash flow hedges were foreign currency contracts for all periods presented.

During the first three months of 2024 and 2023, the amounts excluded from effectiveness testing were insignificant.

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) on Derivatives Recognized in Consolidated Condensed Statements of Income
	Three Months Ended
(In Millions)	Mar 30, 2024		Apr 1, 2023
Interest rate contracts	$	(144)	$	192
Hedged items	144		(192)
Total	$	—	$	—

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

Line Item in the Consolidated Condensed 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)	Mar 30, 2024		Dec 30, 2023		Mar 30, 2024		Dec 30, 2023
Long-term debt	$	(11,275)	$	(11,419)	$	722	$	578

Derivatives Not Designated as Hedging Instruments

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

		Three Months Ended
(In Millions)	Location of Gains (Losses) Recognized in Income on Derivatives	Mar 30, 2024		Apr 1, 2023
Foreign currency contracts	Interest and other, net	$	346	$	1
Interest rate contracts	Interest and other, net	117		(34)
Other	Various	137		115
Total		$	600	$	82