Quarterly report [Sections 13 or 15(d)]

Derivative Financial Instruments

v3.26.3
Derivative Financial Instruments
 9 Months Ended
Sep. 26, 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) Sep 26, 2026 Dec 27, 2025
Foreign currency contracts $ 30,950  $ 22,740 
Interest rate contracts 26,582  21,796 
Equity contracts1
2,556  2,689 
Total $ 60,088  $ 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 September 26, 2026 and $9.7 billion as of December 27, 2025.
Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets
Sep 26, 2026 Dec 27, 2025
(In Millions)
Assets1
Liabilities2
Assets1
Liabilities2
Derivatives designated as hedging instruments:
Foreign currency contracts $ 52  $ 119  $ 173  $ 49 
Interest rate contracts —  690  —  266 
Total derivatives designated as hedging instruments 52  809  173  315 
Derivatives not designated as hedging instruments:
Foreign currency contracts 287  145  351  278 
Interest rate contracts 344  23  86  116 
Equity contracts3
231  13  431  6 
Escrowed Shares —  13,705  —  2,654 
Ireland SCIP arrangement
 —  —  —  755 
Total derivatives not designated as hedging instruments 862  13,886  868  3,809 
Total derivatives 914  14,695  1,041  4,124 
Netted cash and non-cash collateral received or pledged (826) (943) (907) (571)
Net derivatives $ 88  $ 13,752  $ 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 $826 million and $964 million, respectively, as of September 26, 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 $42 million net losses in the third quarter of 2026 and $109 million net losses in the first nine months of 2026 ($7 million net losses in the third quarter of 2025 and $706 million net gains in the first nine 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 Nine Months Ended
(In Millions) Sep 26, 2026 Sep 27, 2025 Sep 26, 2026 Sep 27, 2025
Interest rate contracts $ (408) $ 36  $ (424) $ 283 
Hedged items 408  (36) 424  (283)
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 26, 2026 Dec 27, 2025 Sep 26, 2026 Dec 27, 2025
Short-term debt $ (985) $ (993) $ 15  $ 7 
Long-term debt (13,072) (8,488) 675  259 
Total $ (14,057) $ (9,481) $ 690  $ 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 Nine Months Ended
(In Millions) Location of Gains (Losses)
Recognized in Income on Derivatives		 Sep 26, 2026 Sep 27, 2025 Sep 26, 2026 Sep 27, 2025
Foreign currency contracts Interest and other, net $ 48  $ 108  $ 362  $ 4 
Interest rate contracts Interest and other, net 214  23  350  (62)
Escrowed Shares Interest and other, net 1,005  (1,687) (12,614) (1,687)
Other Various 61  167  357  209 
Total $ 1,328  $ (1,389) $ (11,545) $ (1,536)