Financial Instruments (Tables)

3 Months Ended

Mar. 24, 2012

Financial Instruments [Abstract]

Fair Values Of Financial Assets And Liabilities

Fair Value Measurements

The fair values of our financial assets and liabilities as of March 24, 2012 and March 19, 2011 are categorized as follows:

	2012				2011
	Assets(a)		Liabilities(a)		Assets(a)		Liabilities(a)
Available-for-sale securities(b)	$	72	$	–	$	70	$	–
Short-term investments – index funds(c)	$	166	$	–	$	177	$	–
Prepaid forward contracts(d)	$	37	$	–	$	43	$	–
Deferred compensation(e)	$	–	$	523	$	–	$	553
Derivatives designated as fair value hedging instruments:
Interest rate derivatives(f)	$	274	$	2	$	293	$	4
Derivatives designated as cash flow hedging instruments:
Forward exchange contracts(g)	$	9	$	18	$	4	$	38
Interest rate derivatives(f)		–		–		3		12
Commodity contracts (h)		14		42		90		17
	$	23	$	60	$	97	$	67
Derivatives not designated as hedging instruments:
Forward exchange contracts(g)	$	30	$	9	$	6	$	11
Interest rate derivatives(f)		95		128		14		52
Commodity contracts(h)		39		30		59		1
	$	164	$	167	$	79	$	64
Total derivatives at fair value	$	461	$	229	$	469	$	135
Total	$	736	$	752	$	759	$	688

^(a)  Financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets, with the exception of available-for-sale securities and short-term investments. Financial liabilities are classified on our balance sheet within accounts payable, other current liabilities and other liabilities. Unless specifically indicated, all financial assets and liabilities are categorized as Level 2 assets or liabilities.

^(b)  Based on the price of common stock. Categorized as a Level 1 asset.

^(c)  Based on price changes in index funds used to manage a portion of market risk arising from our deferred compensation liability. Categorized as a Level 1 asset.

^(d)  Based primarily on the price of our common stock.

^(e)  Based on the fair value of investments corresponding to employees' investment elections. As of March 24, 2012 and March 19, 2011, $49 million and $63 million, respectively, are categorized as Level 1 liabilities. The remaining balances are categorized as Level 2 liabilities.

^(f) Based on LIBOR forward rates.

^(g)  Based on recently reported market transactions of spot and forward rates.

^(h)  Based on recently reported market transactions, primarily swap arrangements, except for liabilities as of March 19, 2011, which primarily related to commodity futures contracts. The futures contracts are valued based on average prices on futures exchanges and categorized as Level 1 liabilities.

Effective Portion Of Pre-Tax (Gains)/Losses On Derivative Instruments

	12 Weeks Ended
	Fair Value/Non- designated Hedges						Cash Flow Hedges
	(Gains) /Losses Recognized in Income Statement(a)						Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss						(Gains)/Losses Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b)
		3/24/12			3/19/11			3/24/12			3/19/11			3/24/12			3/19/11
Forward exchange contracts	$	(10	)	$	(1	)	$	29		$	25		$	(3	)	$	5
Interest rate derivatives		27			(22	)		4			(6	)		4			3
Commodity contracts		(49	)		(39	)		(18	)		(40	)		11			(6	)
Total	$	(32	)	$	(62	)	$	15		$	(21	)	$	12		$	2

^(a)  Interest rate derivatives gains are primarily from fair value hedges and are included in interest expense. These gains are substantially offset by increases in the value of the underlying debt, which is also included in interest expense. All other gains/losses are from non-designated hedges and are included in corporate unallocated expenses.

^(b)  Interest rate losses are included in interest expense. All other gains/losses are primarily included in cost of sales.