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Derivative Financial Instruments | 3 Months Ended
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Mar. 27, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments [Text Block] |
Note 12 : | Derivative Financial Instruments
Volume of Derivative Activity Total gross notional amounts for outstanding derivatives at the end of each period were as follows:
(In Millions) |  | Mar 27, 2021 |  | Dec 26, 2020 |  |
Foreign currency contracts |  | $ | 31,349 |  |  | $ | 31,209 |  |  |
Interest rate contracts |  | 14,556 |  |  | 14,461 |  |  |
Other |  | 2,139 |  |  | 2,026 |  |  |
Total |  | $ | 48,044 |  |  | $ | 47,696 |  |  |
Fair Value of Derivative Instruments
|  | Mar 27, 2021 |  | Dec 26, 2020
(In Millions) |  | Assets 1 |  | Liabilities 2 |  | Assets 1 |  | Liabilities 2
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign currency contracts 3 |  | $ | 215 |  |  | $ | 110 |  |  | $ | 551 |  |  | $ | 2 |
Interest rate contracts |  | 986 |  |  | — |  |  | 1,498 |  |  | — |
Total derivatives designated as hedging instruments |  | 1,201 |  |  | 110 |  |  | 2,049 |  |  | 2 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign currency contracts 3 |  | 221 |  |  | 404 |  |  | 142 |  |  | 685 |
Interest rate contracts |  | 6 |  |  | 98 |  |  | 3 |  |  | 128 |
Equity contracts |  | 33 |  |  | 6 |  |  | 48 |  |  | — |
Total derivatives not designated as hedging instruments |  | 260 |  |  | 508 |  |  | 193 |  |  | 813 |
Total derivatives |  | $ | 1,461 |  |  | $ | 618 |  |  | $ | 2,242 |  |  | $ | 815 |
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. Amounts Offset in the Consolidated Condensed Balance Sheets 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:
|  | Mar 27, 2021
|  |  |  |  |  |  |  | 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 |  | $ | 1,455 |  |  |  |  | $ | 1,455 |  |  | $ | (404) |  |  | $ | (1,036) |  |  | $ | 15 |
Reverse repurchase agreements |  | 1,350 |  |  | — |  |  | 1,350 |  |  | — |  |  | (1,350) |  |  | — |
Total assets |  | 2,805 |  |  | — |  |  | 2,805 |  |  | (404) |  |  | (2,386) |  |  | 15 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities subject to master netting arrangements |  | 516 |  |  | — |  |  | 516 |  |  | (404) |  |  | (112) |  |  | — |
Total liabilities |  | $ | 516 |  |  | $ | — |  |  | $ | 516 |  |  | $ | (404) |  |  | $ | (112) |  |  | $ | — |
|  | Dec 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) |  |  | $ | — |
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 cash flow hedges, recognized in other comprehensive income (loss), were $334 million net losses in the first three months of 2021 ($373 million net losses in the first three months of 2020). Substantially all of our cash flow hedges were foreign currency contracts for all periods presented. During the first three months of 2021 and 2020, the amounts excluded from effectiveness testing were insignificant. 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) Recognized in Consolidated Condensed Statements of Income on Derivatives
(In Millions) |  | Mar 27, 2021 |  | Mar 28, 2020 |  |  |  |
Interest rate contracts |  | $ | (512) |  |  | $ | 954 |  |  |  |  |
Hedged items |  | 512 |  |  | (954) |  |  |  |  |
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 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) |
(In Millions) |  | Mar 27, 2021 |  | Dec 26, 2020 |  | Mar 27, 2021 |  | Dec 26, 2020 |
Long-term debt |  | $ | (12,983) |  |  | $ | (13,495) |  |  | $ | (986) |  |  | $ | (1,498) |  |
The total notional amount of pay-variable and receive-fixed interest rate swaps was $12.0 billion as of March 27, 2021 and as of December 26, 2020. Derivatives Not Designated as Hedging Instruments The effects of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Income for each period were as follows:
|  |  |  | Three Months Ended |  |
(In Millions) |  | Location of Gains (Losses) Recognized in Income on Derivatives |  | Mar 27, 2021 |  | Mar 28, 2020 |  |  |  |
Foreign currency contracts |  | Interest and other, net |  | $ | 234 |  |  | $ | 154 |  |  |  |  |
Interest rate contracts |  | Interest and other, net |  | 23 |  |  | (77) |  |  |  |  |
Other |  | Various |  | 55 |  |  | (268) |  |  |  |  |
Total |  |  |  | $ | 312 |  |  | $ | (191) |  |  |  |  |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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