Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments (Tables)

v3.19.3.a.u2
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 28, 2019
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 28,
2019
 
Dec 29,
2018
 
Dec 30,
2017
Foreign currency contracts
 
$
23,981

 
$
19,223

 
$
19,958

Interest rate contracts
 
14,302

 
22,447

 
16,823

Other
 
1,753

 
1,356

 
1,636

Total
 
$
40,036


$
43,026


$
38,417

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
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 28,
2019
 
Dec 29,
2018
 
Dec 28,
2019
 
Dec 29,
2018
Long-term debt
 
$
(12,678
)
 
$
(19,622
)
 
$
(681
)
 
$
390


FAIR VALUE OF DERIVATIVE INSTRUMENTS IN THE CONSOLIDATED BALANCE SHEETS
 
 
December 28, 2019
 
December 29, 2018
(In Millions)
 
Assets1
 
Liabilities2
 
Assets1
 
Liabilities2
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
Foreign currency contracts3
 
$
56

 
$
159

 
$
44

 
$
244

Interest rate contracts
 
690

 
9

 
84

 
474

Total derivatives designated as hedging instruments
 
746


168


128


718

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
Foreign currency contracts3
 
179

 
78

 
132

 
155

Interest rate contracts
 
11

 
54

 
20

 
22

Equity contracts
 
50

 
3

 

 

Total derivatives not designated as hedging instruments
 
240


135


152


177

Total derivatives
 
$
986


$
303


$
280


$
895


1 
Derivative assets are recorded as other assets, current and non-current.
2 
Derivative liabilities are recorded as other liabilities, current and non-current.
3 
The majority of these instruments mature within 12 months.
Offsetting Assets [Table Text Block]
The gross amounts of our derivative instruments and reverse repurchase 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:
 
 
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

 
 
December 29, 2018
 
 
 
 
 
 
 
 
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
 
$
292

 
$

 
$
292

 
$
(220
)
 
$
(72
)
 
$

Reverse repurchase agreements
 
2,099

 

 
2,099

 

 
(1,999
)
 
100

Total assets
 
2,391




2,391


(220
)

(2,071
)

100

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities subject to master netting arrangements
 
890

 

 
890

 
(220
)
 
(576
)
 
94

Total liabilities
 
$
890


$


$
890


$
(220
)

$
(576
)

$
94


Offsetting Liabilities [Table Text Block]
The gross amounts of our derivative instruments and reverse repurchase 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:
 
 
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

 
 
December 29, 2018
 
 
 
 
 
 
 
 
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
 
$
292

 
$

 
$
292

 
$
(220
)
 
$
(72
)
 
$

Reverse repurchase agreements
 
2,099

 

 
2,099

 

 
(1,999
)
 
100

Total assets
 
2,391




2,391


(220
)

(2,071
)

100

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities subject to master netting arrangements
 
890

 

 
890

 
(220
)
 
(576
)
 
94

Total liabilities
 
$
890


$


$
890


$
(220
)

$
(576
)

$
94


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 28,
2019
 
Dec 29,
2018
 
Dec 30,
2017
Interest rate contracts
 
$
1,071

 
$
(138
)
 
$
(68
)
Hedged items
 
(1,071
)
 
138

 
68

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 28,
2019
 
Dec 29,
2018
 
Dec 30,
2017
Foreign currency contracts
 
Interest and other, net
 
$
204

 
$
372

 
$
(547
)
Interest rate contracts
 
Interest and other, net
 
(32
)
 
9

 
9

Other
 
Various
 
297

 
(147
)
 
203

Total
 
$
469


$
234


$
(335
)