Derivatives and Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 01, 2023

Derivatives and Fair Value of Financial Instruments

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

	April 1,
(Millions of dollars)	2023		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic debt securities	$	475	$	174	$	301	$	—
Domestic equity securities		440		440		—		—
Foreign equity securities		174		174		—		—
Foreign debt securities		107		—		107		—
Money market funds held in trading accounts		13		13		—		—
Other trading securities		4		—		4		—
Trading securities – other current assets		28		27		1		—
Long-term investment – BDC		65		—		65		—
Derivatives		10		8		2		—
Total assets	$	1,316	$	836	$	480	$	—
Liabilities:
Contingent consideration	$	20	$	—	$	—	$	20
Derivatives		14		14		—		—
Total liabilities	$	34	$	14	$	—	$	20

	December 31,
(Millions of dollars)	2022		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	433	$	433	$	—	$	—
Domestic debt securities		399		162		237		—
Foreign equity securities		169		169		—		—
Foreign debt securities		66		—		66		—
Money market funds held in trading accounts		12		12		—		—
Other trading securities		7		—		7		—
Trading securities – other current assets		26		25		1		—
Long-term investment – BDC		63		—		63		—
Derivatives		26		26		—		—
Total assets	$	1,201	$	827	$	374	$	—
Liabilities:
Contingent consideration	$	19	$	—	$	—	$	19
Derivatives		12		2		10		—
Total liabilities	$	31	$	2	$	10	$	19

Schedule of aggregated outstanding notional amounts related to derivative financial instruments

		April 1,	December 31,
(Millions)	Metric	2023	2022
Commodities:
Grain	Bushels	22	8
Hogs	Pounds	145	16
Soybean oil	Pounds	29	26
Sugar	Pounds	21	—
Foreign currencies	U.S. dollar	124	190

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

		Asset					Liability
		April 1,		December 31,			April 1,		December 31,
(Millions of dollars)		2023		2022			2023		2022
Commodities	Other current assets	$	8	$	26	Other current liabilities	$	14	$	2
Foreign currencies	Other current assets		2		—	Other current liabilities		—		10

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
		April 1,		April 2,
(Millions of dollars)		2023		2022
Commodities	Cost of sales	$	(3)	$	(28)
Foreign currencies	Cost of sales		3		(1)
Foreign currencies	Foreign currency gains (losses), net		(2)		1