Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments (Tables)

v3.20.4
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 26, 2020
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
Total gross notional amounts for outstanding derivatives (recorded at fair value) at the end of each period were as follows:
(In Millions)
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018
Foreign currency contracts $ 31,209  $ 23,981  $ 19,223 
Interest rate contracts 14,461  14,302  22,447 
Other 2,026  1,753  1,356 
Total $ 47,696  $ 40,036  $ 43,026 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
Fair Value of Derivative Instruments in the Consolidated Balance Sheets
December 26, 2020 December 28, 2019
(In Millions)
Assets1
Liabilities2
Assets1
Liabilities2
Derivatives designated as hedging instruments
Foreign currency contracts3
$ 551  $ $ 56  $ 159 
Interest rate contracts 1,498  —  690 
Total derivatives designated as hedging instruments 2,049  2  746  168 
Derivatives not designated as hedging instruments
Foreign currency contracts3
142  685  179  78 
Interest rate contracts 128  11  54 
Equity contracts 48  —  50 
Total derivatives not designated as hedging instruments 193  813  240  135 
Total derivatives $ 2,242  $ 815  $ 986  $ 303 
1Derivative assets are recorded as other assets, current and long-term.
2Derivative liabilities are recorded as other liabilities, current and long-term.
3The majority of these instruments mature within 12 months.
The amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges for each period were as follows:
Line Item in the Consolidated Balance Sheet in Which the Hedged Item Is Included Carrying Amount of the Hedged Item Asset/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount Assets/(Liabilities)
Years Ended (In Millions) Dec 26, 2020 Dec 28, 2019 Dec 26, 2020 Dec 28, 2019
Long-term debt $ (13,495) $ (12,678) $ (1,498) $ (681)
Offsetting Assets [Table Text Block] greements subject to master netting arrangements with various counterparties, and cash and non-cash collateral posted under such agreements at the end of each period were as follows:
December 26, 2020
Gross Amounts Not Offset in the Balance Sheet
(In Millions) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts Presented in the Balance Sheet Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 2,235  $ —  $ 2,235  $ (264) $ (1,904) $ 67 
Reverse repurchase agreements 1,900  —  1,900  —  (1,900) — 
Total assets 4,135    4,135  (264) (3,804) 67 
Liabilities:
Derivative liabilities subject to master netting arrangements 711  —  711  (264) (447) — 
Total liabilities $ 711  $   $ 711  $ (264) $ (447) $  
December 28, 2019
Gross Amounts Not Offset in the Balance Sheet
(In Millions) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts Presented in the Balance Sheet Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 974  $ —  $ 974  $ (144) $ (808) $ 22 
Reverse repurchase agreements 1,850  —  1,850  —  (1,850) — 
Total assets 2,824    2,824  (144) (2,658) 22 
Liabilities:
Derivative liabilities subject to master netting arrangements 262  —  262  (144) (72) 46 
Total liabilities $ 262  $   $ 262  $ (144) $ (72) $ 46 
Offsetting Liabilities [Table Text Block] greements subject to master netting arrangements with various counterparties, and cash and non-cash collateral posted under such agreements at the end of each period were as follows:
December 26, 2020
Gross Amounts Not Offset in the Balance Sheet
(In Millions) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts Presented in the Balance Sheet Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 2,235  $ —  $ 2,235  $ (264) $ (1,904) $ 67 
Reverse repurchase agreements 1,900  —  1,900  —  (1,900) — 
Total assets 4,135    4,135  (264) (3,804) 67 
Liabilities:
Derivative liabilities subject to master netting arrangements 711  —  711  (264) (447) — 
Total liabilities $ 711  $   $ 711  $ (264) $ (447) $  
December 28, 2019
Gross Amounts Not Offset in the Balance Sheet
(In Millions) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts Presented in the Balance Sheet Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 974  $ —  $ 974  $ (144) $ (808) $ 22 
Reverse repurchase agreements 1,850  —  1,850  —  (1,850) — 
Total assets 2,824    2,824  (144) (2,658) 22 
Liabilities:
Derivative liabilities subject to master netting arrangements 262  —  262  (144) (72) 46 
Total liabilities $ 262  $   $ 262  $ (144) $ (72) $ 46 
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
The effects of derivative instruments designated as fair value hedges, recognized in interest and other, net for each period were as follows:
Gains (Losses) Recognized in Statement of Income on Derivatives
Years Ended (In Millions) Dec 26, 2020 Dec 28, 2019 Dec 29, 2018
Interest rate contracts $ 817  $ 1,071  $ (138)
Hedged items (817) (1,071) 138 
Total $   $   $  
Derivatives Not Designated as Hedging Instruments [Table Text Block]
The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for each period were as follows:
Years Ended (In Millions) Location of Gains (Losses)
Recognized in Income on Derivatives
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018
Foreign currency contracts Interest and other, net $ (572) $ 204  $ 372 
Interest rate contracts Interest and other, net (90) (32)
Other Various 284  297  (147)
Total $ (378) $ 469  $ 234