Quarterly report [Sections 13 or 15(d)]

Derivative Financial Instruments

v3.25.3
Derivative Financial Instruments
 9 Months Ended
Sep. 27, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Note 12 : Derivative Financial Instruments
Volume of Derivative Activity
Total gross notional amounts for outstanding derivatives (recorded at fair value) at the end of each period were as follows: 
(In Millions)
 Sep 27, 2025 Dec 28, 2024
Foreign currency contracts
 $ 20,967  $ 25,472 
Interest rate contracts
 21,130  17,899 
Equity contracts1
2,507  2,593 
Total $ 44,604  $ 45,964 
1    Relates to our deferred compensation program.

The total notional amount of outstanding pay-variable, receive-fixed interest rate swaps was $9.7 billion as of September 27, 2025 and $12.0 billion as of December 28, 2024.
Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets
 
 Sep 27, 2025 Dec 28, 2024
(In Millions)
Assets1
Liabilities2
Assets1
Liabilities2
Derivatives designated as hedging instruments:
Foreign currency contracts3
$ 177  $ 35  $ 40  $ 405 
Interest rate contracts
 —  299  —  582 
Total derivatives designated as hedging instruments
 $ 177  $ 334  $ 40  $ 987 
Derivatives not designated as hedging instruments:
Foreign currency contracts3
$ 193  $ 261  $ 510  $ 100 
Interest rate contracts
 111  115  184  25 
Equity contracts4
342  2  348  — 
Escrowed Shares
 —  5,611  —  — 
Ireland SCIP arrangement
 —  755  —  755 
Total derivatives not designated as hedging instruments $ 646  $ 6,744  $ 1,042  $ 880 
Total derivatives $ 823  $ 7,078  $ 1,082  $ 1,867 
1Derivative assets are recorded as other assets, current and long-term.
2Derivative liabilities are recorded as other liabilities, current and long-term.
3A substantial majority of these instruments mature within 12 months.
4Relates to our deferred compensation program.
Amounts Offset in the Consolidated Condensed Balance Sheets
Agreements 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:
Sep 27, 2025
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 $ 710  $ —  $ 710  $ (339) $ (371) $ — 
Reverse repurchase agreements
 4,369  —  4,369  —  (4,369) — 
Total assets $ 5,079  $ —  $ 5,079  $ (339) $ (4,740) $ — 
Liabilities:
Derivative liabilities subject to master netting arrangements $ 643  $ —  $ 643  $ (339) $ (325) $ (21)
Total liabilities $ 643  $ —  $ 643  $ (339) $ (325) $ (21)
Dec 28, 2024
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 $ 948  $ —  $ 948  $ (269) $ (679) $ — 
Reverse repurchase agreements 2,654  —  2,654  —  (2,654) — 
Total assets $ 3,602  $ —  $ 3,602  $ (269) $ (3,333) $ — 
Liabilities:
Derivative liabilities subject to master netting arrangements $ 1,084  $ —  $ 1,084  $ (269) $ (745) $ 70 
Total liabilities $ 1,084  $ —  $ 1,084  $ (269) $ (745) $ 70 
We obtain and secure available collateral from counterparties against obligations, including securities lending transactions and reverse repurchase agreements, when we deem it appropriate.
Derivatives in Cash Flow Hedging Relationships
The before-tax net gains or losses attributed to the effective portion of cash flow hedges recognized in other comprehensive income (loss) were $7 million net losses in the third quarter of 2025 and $706 million net gains in the first nine months of 2025 ($609 million net gains in the third quarter of 2024 and $49 million net losses in the first nine months of 2024).
Derivatives in Fair Value Hedging Relationships    
The effects of derivative instruments designated as fair value hedges, recognized in interest and other, net for each period were as follows:
Gains (Losses) on Derivatives Recognized in Consolidated Condensed Statements of Operations
Three Months Ended Nine Months Ended
(In Millions) Sep 27, 2025 Sep 28, 2024 Sep 27, 2025 Sep 28, 2024
Interest rate contracts
 $ 36  $ 345  $ 283  $ 225 
Hedged items
 (36) (345) (283) (225)
Total $ —  $ —  $ —  $ — 
The amounts recorded on the Consolidated Condensed Balance Sheets related to cumulative basis adjustments for fair value hedges for each period were as follows:
Line Item in the Consolidated Condensed Balance Sheets in Which the Hedged Item is Included Carrying Amount of the Hedged Item Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount Assets/(Liabilities)
(In Millions) Sep 27, 2025 Dec 28, 2024 Sep 27, 2025 Dec 28, 2024
Short-term debt $ (988) $ (2,214) $ 12  $ 36 
Long-term debt (8,460) (9,201) 287  546 
Total $ (9,448) $ (11,415) $ 299  $ 582 
Derivatives Not Designated as Hedging Instruments
The effects of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Operations for each period were as follows:
 
 Three Months Ended Nine Months Ended
(In Millions)
Location of Gains (Losses)
Recognized in Income on Derivatives
 Sep 27, 2025 Sep 28, 2024 Sep 27, 2025 Sep 28, 2024
Foreign currency contracts
Interest and other, net
 $ 108  $ (344) $ 4  $ 192 
Interest rate contracts
Interest and other, net
 23  (127) (62) 24 
Escrowed Shares Interest and other, net (1,687) —  (1,687) — 
Other Various 167  97  209  290 
Total $ (1,389) $ (374) $ (1,536) $ 506 
$1.7 billion of losses for the three and nine months ended September 27, 2025 related to changes in fair value of the Escrowed Shares released during the periods ended and held as of September 27, 2025 (refer to "Note 4: Earnings (Loss) Per Share and Stockholders' Equity" within Notes to Consolidated Condensed Financial Statements).