DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 27, 2025

Derivative Instruments and Fair Value Measurements [Abstract]

Schedule of Total Notional Amounts of Derivative Instruments

Total notional amounts of the Company’s derivative instruments as of September 27, 2025 and December 28, 2024 were as follows:


(millions)	September 27, 2025		December 28, 2024
Foreign currency exchange contracts	$	3,890	$	3,243
Cross-currency contracts	2,915		2,030
Interest rate contracts	1,050		1,050
Commodity contracts	333		285
Total	$	8,188	$	6,608

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of September 27, 2025 and December 28, 2024:

Derivatives designated as hedging instruments


	September 27, 2025						December 28, 2024
(millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Cross-currency contracts:
Other current assets	$	—	$	10	$	10	$	—	$	47	$	47
Other assets	—		—		—		—		51		51



Total assets	$	—	$	10	$	10	$	—	$	98	$	98
Liabilities:


Cross-currency contracts:
Other current liabilities	$	—	$	(91)	$	(91)	$	—	$	(2)	$	(2)
Other liabilities	—		(21)		(21)		—		(9)		(9)
Interest rate contracts(a):
Other current liabilities	—		—		—		—		—		—
Other liabilities	—		(24)		(24)		—		(41)		(41)



Total liabilities	$	—	$	(136)	$	(136)	$	—	$	(52)	$	(52)

(a) The fair value of the related hedged portion of the Company's long-term debt, a Level 2 liability, was $0.5 billion and $0.4 billion as of September 27, 2025 and December 28, 2024, respectively.

Derivatives not designated as hedging instruments


	September 27, 2025						December 28, 2024
(millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Foreign currency exchange contracts:
Other current assets	$	—	$	43	$	43	$	—	$	65	$	65
Other assets	—		1		1		—		2		2
Interest rate contracts:
Other current assets	—		6		6		—		6		6
Other assets	—		1		1		—		1		1
Commodity contracts:
Other current assets	5		—		5		4		—		4
Total assets	$	5	$	51	$	56	$	4	$	74	$	78
Liabilities:
Foreign currency exchange contracts:
Other current liabilities	$	—	$	(44)	$	(44)	$	—	$	(33)	$	(33)
Other liabilities	—		—		—		—		(1)		(1)
Interest rate contracts:
Other current liabilities	—		(8)		(8)		—		(8)		(8)
Other liabilities	—		—		—		—		(1)		(1)
Commodity contracts:
Other current liabilities	(7)		—		(7)		(7)		—		(7)

Total liabilities	$	(7)	$	(52)	$	(59)	$	(7)	$	(43)	$	(50)

Schedule of Derivative Instruments in Statement of Financial Position Fair Value

The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of September 27, 2025 and December 28, 2024.


(millions)	Line Item in the Consolidated Balance Sheet in which the hedged item is included	Carrying amount of the hedged liabilities				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a)
		September 27, 2025		December 28, 2024		September 27, 2025		December 28, 2024
Interest rate contracts	Current maturities of long-term debt	$	599	$	627	$	(1)	$	1
Interest rate contracts	Long-term debt	$	424	$	1,005	$	(24)	$	(43)

(a) The fair value adjustment related to current maturities of long-term debt includes $(1) million and $1 million from discontinued hedging relationships as of September 27, 2025 and December 28, 2024, respectively. The fair value adjustment related to long-term debt includes $(1) million from discontinued hedging relationships as of December 28, 2024.

Schedule of Offsetting Assets



As of September 27, 2025:			Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	66	$	(63)	$	—	$	3
Total liability derivatives	$	(195)	$	63	$	97	$	(35)



As of December 28, 2024:			Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	176	$	(88)	$	61	$	149
Total liability derivatives	$	(102)	$	88	$	14	$	—

Schedule of Offsetting Liabilities



As of September 27, 2025:			Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	66	$	(63)	$	—	$	3
Total liability derivatives	$	(195)	$	63	$	97	$	(35)



As of December 28, 2024:			Gross Amounts Not Offset in the Consolidated Balance Sheet
	Amounts Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received/ Posted		Net Amount
Total asset derivatives	$	176	$	(88)	$	61	$	149
Total liability derivatives	$	(102)	$	88	$	14	$	—

Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income

The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended September 27, 2025 and September 28, 2024 was as follows:

Derivatives and non-derivatives in net investment hedging relationships


(millions)	Gain (loss) recognized in AOCI				Gain (loss) excluded from assessment of hedge effectiveness				Location of gain (loss) in income of excluded component
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Foreign currency denominated long-term debt	$	4	$	(60)	$	—	$	—
Cross-currency contracts	1		(73)		12		16		Interest expense
Total	$	5	$	(133)	$	12	$	16

Derivatives not designated as hedging instruments


(millions)	Location of gain (loss) recognized in income	Gain (loss) recognized in income
		September 27, 2025		September 28, 2024
Foreign currency exchange contracts	COGS	$	9	$	2
Foreign currency exchange contracts	Other income (expense), net	(6)		24
Foreign currency exchange contracts	SG&A	(1)		(2)
Interest rate contracts	Interest expense	1		—
Commodity contracts	COGS	(12)		(4)

Total		$	(9)	$	20

The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended September 27, 2025 and September 28, 2024 was as follows:

Derivatives and non-derivatives in net investment hedging relationships



(millions)	Gain (loss) recognized in AOCI				Gain (loss) excluded from assessment of hedge effectiveness				Location of gain (loss) in income of excluded component
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Foreign currency denominated long-term debt	$	(78)	$	(9)	$	—	$	—
Cross-currency contracts	(244)		(25)		35		30		Interest expense
Total	$	(322)	$	(34)	$	35	$	30

Derivatives not designated as hedging instruments



(millions)	Location of gain (loss) recognized in income	Gain (loss) recognized in income
		September 27, 2025		September 28, 2024
Foreign currency exchange contracts	COGS	$	(21)	$	15
Foreign currency exchange contracts	Other income (expense), net	17		30
Foreign currency exchange contracts	SG&A	6		9
Interest rate contracts	Interest expense	2		—
Commodity contracts	COGS	2		(53)

Total		$	6	$	1

The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the quarters ended September 27, 2025 and September 28, 2024:


		September 27, 2025		September 28, 2024
(millions)		Interest Expense		Interest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded		$	60	$	75
	Gain (loss) on fair value hedging relationships:
	Interest contracts:
	Hedged items	(3)		(16)
	Derivatives designated as hedging instruments	4		17

	Gain (loss) on cash flow hedging relationships:
	Interest contracts:
	Amount of gain (loss) reclassified from AOCI into income	1		—

The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the year-to-date periods ended September 27, 2025 and September 28, 2024:



		September 27, 2025		September 28, 2024
(millions)		Interest Expense		Interest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded		$	186	$	241
	Gain (loss) on fair value hedging relationships:
	Interest contracts:
	Hedged items	(17)		(19)
	Derivatives designated as hedging instruments	17		24

	Gain (loss) on cash flow hedging relationships:
	Interest contracts:
	Amount of gain (loss) reclassified from AOCI into income	4		(3)

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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