Financial Instruments (Tables)

8 Months Ended

Sep. 03, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Financial Instruments

The notional amounts of our financial instruments used to hedge the above risks as of September 3, 2022 and December 25, 2021 are as follows:

	Notional Amounts(a)
	9/3/2022		12/25/2021
Commodity	$	1.9	$	1.6
Foreign exchange	$	2.8	$	2.8
Interest rate	$	2.1	$	2.1
Net investment (b)	$	2.7	$	2.1

(a)In billions.

(b)The total notional of our net investment hedge consists of non-derivative debt instruments.

Summary of Fair Values of Financial Assets and Liabilities

The fair values of our financial assets and liabilities as of September 3, 2022 and December 25, 2021 are categorized as follows:

		9/3/2022				12/25/2021
	Fair Value Hierarchy Levels(a)	Assets(a)		Liabilities(a)		Assets(a)		Liabilities(a)
Available-for-sale debt security (b)	2	$	555	$	—	$	—	$	—
Index funds (c)	1	$	278	$	—	$	337	$	—
Prepaid forward contracts (d)	2	$	13	$	—	$	21	$	—
Deferred compensation (e)	2	$	—	$	436	$	—	$	505
Derivatives designated as cash flow hedging instruments:
Foreign exchange (f)	2	$	29	$	14	$	29	$	14
Interest rate (f)	2	6		416		14		264
Commodity (g)	2	—		77		70		5
		$	35	$	507	$	113	$	283
Derivatives not designated as hedging instruments:
Foreign exchange (f)	2	$	30	$	9	$	19	$	7
Commodity (g)	2	64		27		35		22
		$	94	$	36	$	54	$	29
Total derivatives at fair value (h)		$	129	$	543	$	167	$	312
Total		$	975	$	979	$	525	$	817

(a)Fair value hierarchy levels are categorized consistently by Level 1 (quoted prices in active markets for identical assets) and Level 2 (significant other observable inputs) in both years. 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)Related to our investment in Celsius convertible preferred stock. The fair value of our investment approximates the transaction price and accrued dividends, as well as the amortized cost.

(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 recently reported market transactions of spot and forward rates.

(g)Primarily based on recently reported market transactions of swap arrangements.

(h)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 September 3, 2022 and December 25, 2021 were not material. There was no collateral received or posted against our asset or liability positions. Exchange-traded commodity futures are cash-settled on a daily basis and, therefore, not included in the table.

Summary of Losses (Gains) On Derivative Instruments

Losses/(gains) on our hedging instruments are categorized as follows:

	12 Weeks Ended
	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)
	9/3/2022		9/4/2021		9/3/2022		9/4/2021		9/3/2022		9/4/2021
Foreign exchange	$	(60)	$	(5)	$	(31)	$	(18)	$	1	$	27
Interest rate	—		1		81		52		94		53
Commodity	53		(31)		141		11		(51)		(66)
Net investment	—		—		(144)		(63)		—		—
Total	$	(7)	$	(35)	$	47	$	(18)	$	44	$	14

	36 Weeks Ended
	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)
	9/3/2022		9/4/2021		9/3/2022		9/4/2021		9/3/2022		9/4/2021
Foreign exchange	$	(55)	$	5	$	(13)	$	20	$	(20)	$	67
Interest rate	—		2		160		(12)		175		2
Commodity	(294)		(182)		(49)		(235)		(203)		(109)
Net investment	—		—		(283)		(71)		—		—
Total	$	(349)	$	(175)	$	(185)	$	(298)	$	(48)	$	(40)

(a)Foreign exchange derivative losses/gains are primarily included in selling, general and administrative expenses. 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 on cross-currency interest rate swaps are included in selling, general and administrative expenses. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity.