Derivatives and Fair Value of Financial Instruments (Tables)

9 Months Ended

Oct. 02, 2021

Derivatives and Fair Value of Financial Instruments

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

	Balance
	October 2,
(Millions of dollars)	2021		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic debt securities	$	724	$	480	$	244	$	—
Domestic equity securities		446		446		—		—
Foreign equity securities		192		192		—		—
Foreign debt securities		124		2		122		—
Money market funds held in trading accounts		9		9		—		—
Other trading securities		22		—		22		—
Trading securities – other current assets:
Domestic equity securities		14		14		—		—
Money market fund held in trading accounts		6		6		—		—
Foreign equity securities		4		4		—		—
Fixed income mutual funds		3		2		1		—
Long-term investment - BDC		82		—		—		82
Derivatives:
Commodities		16		16		—		—
Foreign currencies		3		—		3		—
Total Assets	$	1,645	$	1,171	$	392	$	82
Liabilities:
Trading securities – short-term investments:
Other trading securities	$	1	$	—	$	1	$	—
Contingent consideration		18		—		—		18
Derivatives:
Commodities		11		11		—		—
Foreign currencies		1		—		1		—
Total Liabilities	$	31	$	11	$	2	$	18

	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 - BDC		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

		October 2,	December 31,
(Millions)	Metric	2021	2020
Commodities
Grain	Bushels	33	26
Hogs	Pounds	1	2
Soybean oil	Pounds	10	56
Heating oil	Gallons	11	—
Foreign currencies	U.S. dollar	92	49
Interest rate swaps	U.S. dollar	—	400
Equity futures	U.S. dollar	14	3

Schedule of gain or (loss) for each type of derivative and where it was recognized in the condensed consolidated statements of comprehensive income

		Three Months Ended				Nine Months Ended
		October 2,		September 26,		October 2,		September 26,
(Millions of dollars)		2021		2020		2021		2020
Commodities	Cost of sales	$	(12)	$	10	$	(32)	$	27
Foreign currencies	Cost of sales		6		2		9		15
Foreign currencies	Foreign currency gains (losses), net		1		(3)		4		(2)
Interest rate swaps	Interest expense		(1)		—		5		(1)
Equity futures	Other investment income (loss), net		(1)		(16)		(1)		7

Schedule of fair value of each type of derivative derivative held and where each derivative is included in the condensed consolidated balance sheets

		Asset Derivatives					Liability Derivatives
		October 2,		December 31,			October 2,		December 31,
(Millions of dollars)		2021		2020			2021		2020
Commodities	Other current assets	$	16	$	28	Other current liabilities	$	11	$	19
Foreign currencies	Other current assets		3		—	Other current liabilities		1		9
Interest rate swaps	Other current assets		—		1	Other current liabilities		—		—
Equity futures	Short-term investments		—		—	Short-term investments		—		—