Financial Instruments (Tables)

6 Months Ended

Jun. 17, 2023

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 June 17, 2023 and December 31, 2022 are as follows:

	Notional Amounts(a)
	6/17/2023		12/31/2022
Commodity	$	1.7	$	1.8
Foreign exchange	$	2.8	$	3.0
Interest rate	$	1.3	$	1.3
Net investment (b)	$	3.0	$	2.9

(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 June 17, 2023 and December 31, 2022 are categorized as follows:

		6/17/2023				12/31/2022
	Fair Value Hierarchy Levels(a)	Assets(a)		Liabilities(a)		Assets(a)		Liabilities(a)
Available-for-sale debt securities (b)	2	$	574	$	—	$	660	$	—
Index funds (c)	1	$	273	$	—	$	257	$	—
Prepaid forward contracts (d)	2	$	14	$	—	$	14	$	—
Deferred compensation (e)	2	$	—	$	447	$	—	$	434
Derivatives designated as cash flow hedging instruments:
Foreign exchange (f)	2	$	5	$	43	$	24	$	22
Interest rate (f)	2	6		144		—		164
Commodity (g)	2	—		58		2		60
		$	11	$	245	$	26	$	246
Derivatives not designated as hedging instruments:
Foreign exchange (f)	2	$	9	$	37	$	21	$	21
Commodity (g)	2	7		33		11		51
		$	16	$	70	$	32	$	72
Total derivatives at fair value (h)		$	27	$	315	$	58	$	318
Total		$	888	$	762	$	989	$	752

(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)Primarily related to our investment in Celsius Holdings, Inc. convertible preferred stock. The fair value of our investment approximates the transaction price and any accrued dividends, as well as the amortized cost. As of June 17, 2023, $16 million and $558 million were classified as short-term investments and other assets, respectively. As of December 31, 2022, $3 million, $104 million and $553 million were classified as cash equivalents, short-term investments and other assets, respectively.

(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 our balance sheet as of June 17, 2023 and December 31, 2022 were not material. Collateral received or posted against our asset or liability positions was not material. 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 cash flow and net investment hedges are categorized as follows:

	12 Weeks Ended
	Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss				Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(a)
	6/17/2023		6/11/2022		6/17/2023		6/11/2022
Foreign exchange	$	43	$	26	$	14	$	(17)
Interest rate	(37)		82		(30)		61
Commodity	(15)		(1)		28		(74)
Net investment	71		(88)		—		—
Total	$	62	$	19	$	12	$	(30)

	24 Weeks Ended
	Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss				Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(a)
	6/17/2023		6/11/2022		6/17/2023		6/11/2022
Foreign exchange	$	59	$	18	$	15	$	(21)
Interest rate	(26)		79		(27)		81
Commodity	50		(190)		37		(152)
Net investment	108		(139)		—		—
Total	$	191	$	(232)	$	25	$	(92)

(a)Foreign exchange derivative losses/(gains) are included in net revenue and cost of sales. Interest rate derivative losses/(gains) 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. See Note 11 for further information.

Losses/(gains) recognized in the income statement related to our non-designated hedges are categorized as follows:

	12 Weeks Ended
	6/17/2023						6/11/2022
	Cost of sales		Selling, general and administrative expenses		Total		Cost of sales		Selling, general and administrative expenses		Total
Foreign exchange	$	—	$	44	$	44	$	(14)	$	35	$	21
Commodity	5		3		8		(60)		(121)		(181)
Total	$	5	$	47	$	52	$	(74)	$	(86)	$	(160)

	24 Weeks Ended
	6/17/2023						6/11/2022
	Cost of sales		Selling, general and administrative expenses		Total		Cost of sales		Selling, general and administrative expenses		Total
Foreign exchange	$	(1)	$	39	$	38	$	(3)	$	8	$	5
Commodity	36		53		89		(134)		(213)		(347)
Total	$	35	$	92	$	127	$	(137)	$	(205)	$	(342)