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Financial Instruments (Tables)
 12 Months Ended
Dec. 29, 2018
Derivative Instruments and Hedges, Assets [Abstract]  
Fair Values Of Financial Assets And Liabilities
Fair Value Measurements
The fair values of our financial assets and liabilities as of December 29, 2018 and December 30, 2017 are categorized as follows:
 
 
 
2018
 
2017
 
Fair Value Hierarchy Levels(a)
 
Assets(a)
 
Liabilities(a)
 
Assets(a)
 
Liabilities(a)
Available-for-sale debt securities (b)
2
 
$
3,658

 
$
—

 
$
14,510

 
$
—

Short-term investments (c)
1
 
$
196

 
$
—

 
$
228

 
$
—

Prepaid forward contracts (d)
2
 
$
22

 
$
—

 
$
27

 
$
—

Deferred compensation (e)
2
 
$
—

 
$
450

 
$
—

 
$
503

Derivatives designated as fair value hedging instruments:
 
 
 
 
 
 
 
 
 
Interest rate (f)
2
 
$
1

 
$
108

 
$
24

 
$
130

Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange (g)
2
 
$
44

 
$
14

 
$
15

 
$
31

Interest rate (g)
2
 
—

 
323

 
—

 
213

Commodity (h)
1
 
—

 
1

 
—

 
2

Commodity (i)
2
 
—

 
3

 
2

 
—

 
 
 
$
44

 
$
341

 
$
17

 
$
246

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange (g)
2
 
$
3

 
$
10

 
$
10

 
$
3

Commodity (h)
1
 
2

 
17

 
—

 
19

Commodity (i)
2
 
5

 
92

 
85

 
12

 
 
 
$
10

 
$
119

 
$
95

 
$
34

Total derivatives at fair value (j)
 
 
$
55

 
$
568

 
$
136

 
$
410

Total
 
 
$
3,931

 
$
1,018

 
$
14,901

 
$
913


(a)
Fair value hierarchy levels are defined in Note 7. Unless otherwise noted, financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities.
(b)
Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of December 29, 2018, these debt securities were primarily classified as cash equivalents. As of December 30, 2017, $5.8 billion and $8.7 billion of debt securities were classified as cash equivalents and short-term investments, respectively. The decrease primarily reflects net maturities and sales of debt securities with maturities greater than three months. Refer to the cash flow statement and “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion on use of these proceeds.
(c)
Based on the price of index funds. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability.
(d)
Based primarily on the price of our common stock.
(e)
Based on the fair value of investments corresponding to employees’ investment elections.
(f)
Based on LIBOR forward rates.
(g)
Based on recently reported market transactions of spot and forward rates.
(h)
Based on quoted contract prices on futures exchange markets.
(i)
Based on recently reported market transactions of swap arrangements.
(j)
Derivative assets and liabilities are presented on a gross basis on our balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the balance sheet as of December 29, 2018 and December 30, 2017 were not material. Collateral received or posted against any of our asset or liability positions were not material. Collateral posted is classified as restricted cash. See Note 13 for further information.
Effective Portion Of Pre-Tax (Gains)/Losses On Derivative Instruments
Losses/(gains) on our hedging instruments are categorized as follows:
 
Fair Value/Non-
designated Hedges
 
Cash Flow and Net Investment Hedges
 
Losses/(Gains)
Recognized in
Income Statement(a)
 
Losses/(Gains)
Recognized in
Accumulated Other
Comprehensive Loss
 
Losses/(Gains)
Reclassified from
Accumulated Other
Comprehensive Loss
into Income
Statement(b)
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Foreign exchange
$
9

 
$
(15
)
 
$
(52
)
 
$
62

 
$
(8
)
 
$
10

Interest rate
53

 
101

 
110

 
(195
)
 
119

 
(184
)
Commodity
117

 
(48
)
 
3

 
3

 
—

 
3

Net investment
—

 
—

 
(77
)
 
157

 
—

 
—

Total
$
179

 
$
38

 
$
(16
)
 
$
27

 
$
111

 
$
(171
)
 
(a)
Foreign exchange derivative losses/gains are primarily included in selling, general and administrative expenses. Interest rate derivative losses/gains are primarily from fair value hedges and are included in interest expense. These losses/gains are substantially offset by decreases/increases in the value of the underlying debt, which are also included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity.
(b)
Foreign exchange derivative losses/gains are primarily included in cost of sales. Interest rate derivative losses/gains are included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity.
Based on current market conditions, we expect to reclassify net gains of $5 million related to our cash flow hedges from accumulated other comprehensive loss into net income during the next 12 months.