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Financial Instruments (Tables)
 6 Months Ended
Jun. 15, 2024
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 15, 2024 and December 30, 2023 are as follows:
 
Notional Amounts(a)
6/15/202412/30/2023
Commodity $1.4 $1.7 
Foreign exchange $3.0 $3.8 
Interest rate$0.7 $1.3 
Net investment (b)
$2.9 $3.0 
(a)In billions.
(b)The total notional amount of our net investment hedges 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 15, 2024 and December 30, 2023 are categorized as follows:
 6/15/202412/30/2023
 
Fair Value Hierarchy Levels(a)
Assets(a)
Liabilities(a)
Assets(a)
Liabilities(a)
Available-for-sale debt securities (b)
2,3$1,519 $— $1,334 $— 
Index funds (c)
1$315 $— $292 $— 
Prepaid forward contracts (d)
2$13 $— $13 $— 
Deferred compensation (e)
2$— $493 $— $477 
Derivatives designated as cash flow hedging instruments:
Foreign exchange (f)
2$14 $13 $3 $31 
Interest rate (f)
2— 152 5 135 
Commodity (g)
223 8 10 24 
$37 $173 $18 $190 
Derivatives not designated as hedging instruments:
Foreign exchange (f)
2$14 $14 $33 $38 
Commodity (g)
27 3 5 13 
$21 $17 $38 $51 
Total derivatives at fair value (h)
$58 $190 $56 $241 
Total$1,905 $683 $1,695 $718 
(a)Fair value hierarchy levels are categorized consistently by Level 1 (quoted prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 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)Includes Level 2 assets of $182 million and Level 3 assets of $1,337 million as of June 15, 2024, and Level 2 assets of $178 million and Level 3 assets of $1,156 million as of December 30, 2023. As of June 15, 2024 and December 30, 2023, $1,519 million and $1,334 million were classified as other assets, respectively. The fair values of our Level 2 investments approximate the transaction price and any accrued returns, as well as the amortized cost. The fair value of our Level 3 investment in Celsius is estimated using probability-weighted discounted future cash flows based on a Monte Carlo simulation using significant unobservable inputs such as an 80% probability that a certain market-based condition will be met and an average estimated discount rate of 5.8% and 8.1% as of June 15, 2024 and December 30, 2023, respectively, based on Celsius’ estimated synthetic credit rating. An increase in the probability that certain market-based conditions will be met or a decrease in the discount rate would result in a higher fair value measurement, while a decrease in the probability that certain market-based conditions will be met or an increase in the discount rate would result in a lower fair value measurement.
(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 15, 2024 and December 30, 2023 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)
6/15/20246/17/20236/15/20246/17/2023
Foreign exchange
$(1)$43 $9 $14 
Interest rate9 (37)11 (30)
Commodity(11)(15)30 28 
Net investment(17)71 — — 
Total$(20)$62 $50 $12 
 24 Weeks Ended
 Losses/(Gains)
Recognized in
Accumulated Other
Comprehensive Loss
Losses/(Gains)
Reclassified from
Accumulated Other
Comprehensive Loss
into Income Statement(a)
6/15/20246/17/20236/15/20246/17/2023
Foreign exchange
$(15)$59 $18 $15 
Interest rate 34 (26)35 (27)
Commodity 28 50 51 37 
Net investment(69)108 — — 
Total$(22)$191 $104 $25 
(a)Foreign exchange derivative losses/(gains) are included in net revenue and cost of sales. Interest rate derivative losses/(gains) are included in selling, general and administrative expenses. Commodity derivative losses/(gains) are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. See Note 11 for further information.
Losses/(gains) recognized in the income statement related to our non-designated hedges are categorized as follows:
12 Weeks Ended
6/15/20246/17/2023
Cost of salesSelling, general and administrative expensesTotalCost of salesSelling, general and administrative expensesTotal
Foreign exchange$— $24 $24 $— $44 $44 
Commodity(14)5 (9)5 3 8 
Total$(14)$29 $15 $5 $47 $52 
24 Weeks Ended
6/15/20246/17/2023
Cost of salesSelling, general and administrative expensesTotalCost of salesSelling, general and administrative expensesTotal
Foreign exchange$— $42 $42 $(1)$39 $38 
Commodity(15)(20)(35)36 53 89 
Total$(15)$22 $7 $35 $92 $127