Derivatives and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jul. 03, 2021

Derivatives and Fair Value of Financial Instruments

Schedule of assets and liabilities measured at fair value on a recurring basis

	Balance
	July 3,
(Millions of dollars)	2021		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic debt securities	$	685	$	440	$	245	$	—
Domestic equity securities		456		456		—		—
Foreign equity securities		193		193		—		—
Foreign debt securities		117		—		117		—
Money market funds held in trading accounts		15		15		—		—
Other trading securities		18		—		18		—
Trading securities – other current assets:
Domestic equity securities		15		15		—		—
Money market fund held in trading accounts		6		6		—		—
Foreign equity securities		4		4		—		—
Fixed income mutual funds		3		2		1		—
Long-term investment		32		—		—		32
Derivatives:
Commodities		17		16		1		—
Interest rate swaps		6		—		6		—
Foreign currencies		9		—		9		—
Total Assets	$	1,576	$	1,147	$	397	$	32
Liabilities:
Trading securities – short-term investments:
Other trading securities	$	1	$	—	$	1	$	—
Contingent consideration		15		—		—		15
Derivatives:
Commodities		33		33		—		—
Total Liabilities	$	49	$	33	$	1	$	15

	Balance
	December 31,
(Millions of dollars)	2020		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	702	$	702	$	—	$	—
Domestic debt securities		496		196		300		—
Foreign equity securities		133		133		—		—
Foreign debt securities		68		—		68		—
Money market funds held in trading accounts		47		47		—		—
Other trading securities		20		3		17		—
Trading securities – other current assets:
Domestic equity securities		14		14		—		—
Money market fund held in trading accounts		6		6		—		—
Foreign equity securities		3		3		—		—
Fixed income mutual funds		3		2		1		—
Long-term investment		31		—		—		31
Derivatives:
Commodities		28		28		—		—
Interest rate swaps		1		—		1		—
Total Assets	$	1,552	$	1,134	$	387	$	31
Liabilities:
Trading securities – short-term investments:
Other trading securities	$	1	$	—	$	1	$	—
Contingent consideration		16		—		—		16
Derivatives:
Commodities		19		19		—		—
Foreign currencies		9		—		9		—
Total Liabilities	$	45	$	19	$	10	$	16

Schedule of aggregated outstanding notional amounts related to derivative financial instruments

		July 3,	December 31,
(Millions)	Metric	2021	2020
Commodities
Grain	Bushels	31	26
Hogs	Pounds	1	2
Soybean oil	Pounds	9	56
Heating oil	Gallons	16	—
Foreign currencies	U.S. dollar	50	49
Interest rate swaps	U.S. dollar	400	400
Equity futures	U.S. dollar	—	3

Schedule of gain or (loss) recognized for each type of derivative and its location in the consolidated statements of comprehensive income

		Three Months Ended				Six Months Ended
		July 3,		June 27,		July 3,		June 27,
(Millions of dollars)		2021		2020		2021		2020
Commodities	Cost of sales	$	(22)	$	(4)	$	(20)	$	17
Foreign currencies	Cost of sales		2		1		3		13
Foreign currencies	Foreign currency gains (losses), net		1		—		3		1
Interest rate swaps	Interest expense		(1)		(1)		6		(1)
Equity futures	Other investment income (loss), net		—		(5)		—		23

Schedule of fair value of each type of derivative and its location in the consolidated balance sheets

		Asset Derivatives					Liability Derivatives
		July 3,		December 31,			July 3,		December 31,
(Millions of dollars)		2021		2020			2021		2020
Commodities	Other current assets	$	17	$	28	Other current liabilities	$	33	$	19
Foreign currencies	Other current assets		9		—	Other current liabilities		—		9
Interest rate swaps	Other current assets		6		1	Other current liabilities		—		—
Equity futures	Short-term investments		—		—	Short-term investments		—		—