Derivative Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 30, 2019

Derivative Instruments and Fair Value Measurements [Abstract]

Schedule of Total Notional Amounts of Derivative Instruments

(millions)	March 30, 2019		December 29, 2018
Foreign currency exchange contracts	$	2,371	$	1,863
Cross-currency contracts	1,372		1,197
Interest rate contracts	1,646		1,608
Commodity contracts	535		417
Total	$	5,924	$	5,085

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of March 30, 2019 and December 29, 2018:

Derivatives designated as hedging instruments

	March 30, 2019								December 29, 2018
(millions)	Level 1		Level 2			Total			Level 1		Level 2			Total
Assets:
Cross-currency contracts:
Other assets	$	—	$	71		$	71		$	—	$	79		$	79
Interest rate contracts:
Other assets (a)	—		35			35			—		17			17
Total assets	$	—	$	106		$	106		$	—	$	96		$	96
Liabilities:
Interest rate contracts:
Other liabilities (a)	—		(15		)	(15		)	—		(22		)	(22		)
Total liabilities	$	—	$	(15	)	$	(15	)	$	—	$	(22	)	$	(22	)

(a) The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $1.7 billion and $1.6 billion as of March 30, 2019 and December 29, 2018, respectively.

Derivatives not designated as hedging instruments

	March 30, 2019									December 29, 2018
(millions)	Level 1			Level 2			Total			Level 1			Level 2			Total
Assets:
Foreign currency exchange contracts:
Other current assets	$	—		$	11		$	11		$	—		$	3		$	3
Commodity contracts:
Other current assets	3			—			3			3			—			3
Total assets	$	3		$	11		$	14		$	3		$	3		$	6
Liabilities:
Foreign currency exchange contracts:
Other current liabilities	$	—		$	(17	)	$	(17	)	$	—		$	(4	)	$	(4	)
Commodity contracts:
Other current liabilities	(13		)	—			(13		)	(9		)	—			(9		)
Total liabilities	$	(13	)	$	(17	)	$	(30	)	$	(9	)	$	(4	)	$	(13	)

Schedule of Derivative Instruments in Statement of Financial Position Fair Value

The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of March 30, 2019 and December 29, 2018.

(millions)	Line Item in the Consolidated Balance Sheet in which the hedged item is included	Carrying amount of the hedged liabilities				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a)
		March 30, 2019		December 29, 2018		March 30, 2019		December 29, 2018
Interest rate contracts	Current maturities of long-term debt	$	502	$	503	$	2	$	3
Interest rate contracts	Long-term debt	$	3,354	$	3,354	$	7	$	(18	)

(a) The current maturities of hedged long-term debt includes $2 million and $3 million of hedging adjustment on discontinued hedging relationships as of March 30, 2019 and December 29, 2018, respectively. The hedged long-term debt includes $(11) million and $(12) millionof hedging adjustment on discontinued hedging relationships as of March 30, 2019 and December 29, 2018, respectively.

Schedule of Offsetting Assets

As of March 30, 2019:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	120		$	(32	)	$	—	$	88
Total liability derivatives	$	(45	)	$	32		$	2	$	(11	)

As of December 29, 2018:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted			Net Amount
Total asset derivatives	$	102		$	(27	)	$	(2	)	$	73
Total liability derivatives	$	(35	)	$	27		$	—		$	(8	)

Schedule of Offsetting Liabilities

As of March 30, 2019:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	120		$	(32	)	$	—	$	88
Total liability derivatives	$	(45	)	$	32		$	2	$	(11	)

As of December 29, 2018:
				Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet			Financial Instruments			Cash Collateral Received/ Posted			Net Amount
Total asset derivatives	$	102		$	(27	)	$	(2	)	$	73
Total liability derivatives	$	(35	)	$	27		$	—		$	(8	)

Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income

The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended March 30, 2019 and March 31, 2018 was as follows:

Derivatives and non-derivatives in net investment hedging relationships

(millions)	Gain (loss) recognized in AOCI						Gain (loss) excluded from assessment of hedge effectiveness				Location of gain (loss) in income of excluded component
	March 30, 2019			March 31, 2018			March 30, 2019		March 31, 2018
Foreign currency denominated long-term debt	$	51		$	(73	)	$	—	$	—
Cross-currency contracts	(8		)	(8		)	8		3		Interest expense
Total	$	43		$	(81	)	$	8	$	3

Derivatives not designated as hedging instruments

(millions)	Location of gain (loss) recognized in income	Gain (loss) recognized in income
		March 30, 2019			March 31, 2018
Foreign currency exchange contracts	COGS	$	(11	)	$	3
Foreign currency exchange contracts	Other income (expense), net	(1		)	(4		)
Foreign currency exchange contracts	SG&A	—			1
Commodity contracts	COGS	(32		)	5
Total		$	(44	)	$	5

The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the quarters ended March 30, 2019 and March 31, 2018:

		March 30, 2019			March 31, 2018
(millions)		Interest Expense			Interest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded		$	74		$	69
	Gain (loss) on fair value hedging relationships:
	Interest contracts:
	Hedged items	(24		)	32
	Derivatives designated as hedging instruments	24			(28		)
	Gain (loss) on cash flow hedging relationships:
	Interest contracts:
	Amount of gain (loss) reclassified from AOCI into income	(1		)	(2		)

Available-for-sale securities

The following is a summary of the carrying and market values of the Company's available for sale securities:

	March 30, 2019						December 29, 2018
			Unrealized						Unrealized
(millions)	Cost		Gain (Loss)		Market Value		Cost		Gain (Loss)		Market Value
Corporate bonds	$	59	$	2	$	61	$	59	$	—	$	59