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Derivative Instruments and Fair Value Measurements (Tables)
3 Months Ended
Apr. 01, 2023
Derivative Instruments and Fair Value Measurements [Abstract]  
Schedule of Total Notional Amounts of Derivative Instruments
Total notional amounts of the Company’s derivative instruments as of April 1, 2023 and December 31, 2022 were as follows:
(millions)April 1,
2023
December 31,
2022
Foreign currency exchange contracts$2,957 $2,502 
Cross-currency contracts2,101 1,983 
Interest rate contracts2,275 2,657 
Commodity contracts456 230 
Total$7,789 $7,372 
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of April 1, 2023 and December 31, 2022:
Derivatives designated as hedging instruments
 April 1, 2023December 31, 2022
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Cross-currency contracts:
Other current assets$ $63 $63 $— $88 $88 
Other assets 26 26 — 36 36 
Interest rate contracts:
Other current assets   — 45 45 
Other assets 10 10 — 25 25 
Total assets$ $99 $99 $— $194 $194 
Liabilities:
Cross-currency contracts:
Other current liabilities$ $(7)$(7)$— $— $— 
   Other liabilities   — — — 
Interest rate contracts(a):
Other current liabilities   — — — 
Other liabilities (77)(77)— (86)(86)
Total liabilities$ $(84)$(84)$— $(86)$(86)
(a) The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $1.1 billion as of April 1, 2023 and December 31, 2022, respectively.
Derivatives not designated as hedging instruments
 April 1, 2023December 31, 2022
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Foreign currency exchange contracts:
Other current assets$ $58 $58 $— $74 $74 
Other assets 14 14 — 14 14 
Interest rate contracts:
Other current assets 9 9 — 
Other assets 6 6 — 14 14 
Commodity contracts:
Other current assets6  6 — 
Total assets$6 $87 $93 $$106 $110 
Liabilities:
Foreign currency exchange contracts:
Other current liabilities$ $(45)$(45)$— $(50)$(50)
Other liabilities (11)(11)— (9)(9)
Interest rate contracts:
Other current liabilities (11)(11)— (7)(7)
Other liabilities (9)(9)— (18)(18)
Commodity contracts:
Other current liabilities(6) (6)(2)— (2)
Total liabilities$(6)$(76)$(82)$(2)$(84)$(86)
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 April 1, 2023 and December 31, 2022.
(millions)Line Item in the Consolidated Balance Sheet in which the hedged item is includedCarrying amount of the hedged liabilitiesCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a)
April 1,
2023
December 31,
2022
April 1,
2023
December 31,
2022
Interest rate contractsCurrent maturities of long-term debt$273 $483 $(2)$(3)
Interest rate contractsLong-term debt$2,288 $2,250 $(63)$(74)
(a) The fair value adjustment related to current maturities of long-term debt includes ($2) million and ($3) million from discontinued hedging relationships as of April 1, 2023 and December 31, 2022, respectively. The fair value adjustment related to long-term debt includes $11 million and $13 million from discontinued hedging relationships as of April 1, 2023 and December 31, 2022, respectively.
Schedule of Offsetting Assets
    
As of April 1, 2023:
  
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$192 $(135)$(1)$56 
Total liability derivatives$(166)$135 $31 $ 

 
As of December 31, 2022:
  
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$304 $(153)$(33)$118 
Total liability derivatives$(172)$153 $19 $— 
Schedule of Offsetting Liabilities
    
As of April 1, 2023:
  
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$192 $(135)$(1)$56 
Total liability derivatives$(166)$135 $31 $ 

 
As of December 31, 2022:
  
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$304 $(153)$(33)$118 
Total liability derivatives$(172)$153 $19 $— 
Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended April 1, 2023 and April 2, 2022 was as follows:
Derivatives and non-derivatives in net investment hedging relationships
(millions)Gain (loss)
recognized in
AOCI
Gain (loss) excluded from assessment of hedge effectivenessLocation of gain (loss) in income of excluded component
 April 1,
2023
April 2,
2022
April 1,
2023
April 2,
2022
Foreign currency denominated long-term debt$(32)$68 $ $— 
Cross-currency contracts(25)33 14 Interest expense
Total$(57)$101 $14 $
Derivatives not designated as hedging instruments
(millions)Location of gain
(loss) recognized
in income
Gain (loss)
recognized in
income
  April 1,
2023
April 2,
2022
Foreign currency exchange contractsCOGS$(6)$(12)
Foreign currency exchange contractsOther income (expense), net(4)(2)
Foreign currency exchange contractsSG&A(2)
Interest rate contractsInterest expense 
Commodity contractsCOGS(39)112 
Total$(51)$100 
The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the quarters ended April 1, 2023 and April 2, 2022:
April 1, 2023April 2, 2022
(millions)Interest ExpenseInterest 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$80 $56 
Gain (loss) on fair value hedging relationships:
Interest contracts:
Hedged items(12)41 
Derivatives designated as hedging instruments13 (40)
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income(3)(4)
Schedule of Available-for-sale Securities Reconciliation
April 1, 2023December 31, 2022
UnrealizedUnrealized
(millions)CostGain (Loss)Market ValueCostGain (Loss)Market Value
Corporate bonds$52 $(4)$48 $52 $(5)$47