Quarterly report [Sections 13 or 15(d)]

Derivative Financial Instruments

v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 27, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Note 13 : 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) Jun 27, 2026 Dec 27, 2025
Foreign currency contracts $ 18,583  $ 22,740 
Interest rate contracts 22,920  21,796 
Equity contracts1
2,544  2,689 
Total $ 44,047  $ 47,225 
1 Relates to our deferred compensation program.

The total notional amount of outstanding pay-variable, receive-fixed interest rate contracts designated as fair value hedges was $14.7 billion as of June 27, 2026 and $9.7 billion as of December 27, 2025.
Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets
  Jun 27, 2026 Dec 27, 2025
(In Millions)
Assets1
Liabilities2
Assets1
Liabilities2
Derivatives designated as hedging instruments:
Foreign currency contracts $ 117  $ 128  $ 173  $ 49 
Interest rate contracts 39  321  —  266 
Total derivatives designated as hedging instruments 156  449  173  315 
Derivatives not designated as hedging instruments:
Foreign currency contracts 248  168  351  278 
Interest rate contracts 113  28  86  116 
Equity contracts3
135  5  431  6 
Escrowed Shares —  15,570  —  2,654 
Ireland SCIP arrangement
 —  —  —  755 
Total derivatives not designated as hedging instruments 496  15,771  868  3,809 
Total derivatives 652  16,220  1,041  4,124 
Netted cash and non-cash collateral received or pledged (588) (628) (907) (571)
Net derivatives $ 64  $ 15,592  $ 134  $ 3,553 
1Derivative assets are recorded as other assets, current and long-term.
2Derivative liabilities are recorded as other liabilities, current and long-term.
3Relates to our deferred compensation program.
Gross derivative assets and liabilities subject to master netting agreements were $588 million and $628 million, respectively, as of June 27, 2026 and $937 million and $654 million, respectively, as of December 27, 2025. Gross amounts recognized for reverse repurchase agreements are fully offset by cash collateral pledged.
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 $3 million net gains in the second quarter of 2026 and $67 million net losses in the first six months of 2026 ($533 million net gains in the second quarter of 2025 and $713 million net gains in the first six months of 2025).
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 Six Months Ended
(In Millions) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025
Interest rate contracts $ 43  $ 106  $ (16) $ 247 
Hedged items (43) (106) 16  (247)
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) Jun 27, 2026 Dec 27, 2025 Jun 27, 2026 Dec 27, 2025
Short-term debt $ (982) $ (993) $ 18  $ 7 
Long-term debt (13,483) (8,488) 264  259 
Total $ (14,465) $ (9,481) $ 282  $ 266 
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 Six Months Ended
(In Millions) Location of Gains (Losses)
Recognized in Income on Derivatives		 Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025
Foreign currency contracts Interest and other, net $ 139  $ (19) $ 314  $ (104)
Interest rate contracts Interest and other, net 28  (28) 136  (85)
Escrowed Shares Interest and other, net (12,529) —  (13,619) — 
Other Various 261  199  296  42 
Total $ (12,101) $ 152  $ (12,873) $ (147)