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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Schedule of Effects of Derivative Instruments

Pre-tax gains/(losses) recorded in net earnings for economic hedges were:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,												Location of Gain/(Loss) Recognized in Earnings
			2023						2022						2023						2022
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	25					$	7					$	47					$	(4)					Interest and other expense, net
Forecasted transactions			27						114						29						107						Cost of sales
Forecasted transactions			8						(52)						13						(31)						Interest and other expense, net
Forecasted transactions			(1)						1						(6)						3						Selling, general and administrative expenses
Commodity contracts			106						(40)						104						197						Cost of sales
Equity method investment    contracts			1						—						3						—						(Loss)/gain on equity method investment transactions
Total			$	166					$	30					$	190					$	272

Schedule of Contingent Consideration

The following is a summary of our contingent consideration liability activity:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
			(in millions)
Liability at beginning of period			$	659					$	165					$	642					$	159
Contingent consideration arising from acquisitions			—						—						—						—
Changes in fair value			(2)						8						15						14
Payments			(90)						—						(90)						—
Currency			—						(1)						—						(1)
Liability at end of period			$	567					$	172					$	567					$	172

Contingent consideration was recorded at fair value in the condensed consolidated balance sheets as follows:

			As of June 30, 2023
			Total Fair Value of Liability						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(in millions)
Clif Bar (1)			$	472					$	—					$	—					$	472
Other (2)			95						—						—						95
Total contingent consideration			$	567					$	—					$	—					$	567

			As of December 31, 2022
			Total Fair Value of Liability						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(in millions)
Clif Bar (1)			$	452					$	—					$	—					$	452
Other (2)			190						—						—						190
Total contingent consideration			$	642					$	—					$	—					$	642

(1)In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The other contingent consideration liabilities are recorded at fair value within long term liabilities. The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information.

(2)The other contingent consideration liabilities are recorded at fair value, with $12 million and $102 million classified as other current liabilities and $83 million and $88 million classified as long term liabilities at June 30, 2023 and December 31, 2022. The fair value of this contingent consideration was determined using a Monte Carlo valuation model based on Level 3 inputs, including management's latest estimate of forecasted future results. Other key assumptions included discount rate and volatility. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information.

Net investment hedges

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Schedule of Hedges of Net Investments in International Operations

Net investment hedge derivative contract impacts on other comprehensive earnings and net earnings were:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
			(in millions)
After-tax gain on NIH contracts(1)			$	22					$	307					$	17					$	348

(1)Amounts recorded for unsettled and settled NIH derivative contracts are recorded in the cumulative translation adjustment within other comprehensive earnings. The cash flows from the settled contracts are reported within other investing activities in the condensed consolidated statement of cash flows.

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
			(in millions)
Amounts excluded from the assessment of hedge effectiveness(1)			$	36					$	30					$	72					$	52

(1)We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings within interest and other expense, net.

After-tax gains/(losses) related to hedges of net investments in international operations were recorded within the cumulative translation adjustment section of other comprehensive income and were:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
			(in millions)
Euro notes			$	(17)					$	142					$	(50)					$	216
British pound sterling notes			—						19						—						27
Swiss franc notes			(11)						21						(16)						27
Canadian notes			(7)						11						(8)						7

Derivative

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Schedule of Fair Value of Derivatives Instruments

Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows:

			As of June 30, 2023												As of December 31, 2022
			Asset Derivatives						Liability Derivatives						Asset Derivatives						Liability Derivatives
			(in millions)
Derivatives designated as accounting hedges:
Interest rate contracts			$	106					47						$	132					35
Net investment hedge derivative contracts (1)			301						262						265						241
			$	407					$	309					$	397					$	276
Derivatives not designated as    accounting hedges:
Currency exchange contracts			$	257					$	144					$	185					$	103
Commodity contracts			912						766						200						247
Interest rate contracts			11						4						8						—
Equity method investment contracts (2)			—						5						—						3
			$	1,180					$	919					$	393					$	353
Total fair value			$	1,587					$	1,228					$	790					$	629

(1)Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements. Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote.

(2)Equity method investment contracts consist of two types of derivatives: (a) options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares that are exercisable at maturity over the third quarter of 2023 with strike prices ranging between €26.10 and €28.71 per share and (b) the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 8, Debt and Borrowing Arrangements.

Schedule of Derivative Instruments Fair Value and Measurement Inputs

The fair values (asset/(liability)) of our derivative instruments were determined using:

			As of June 30, 2023
			Total Fair Value of Net Asset/(Liability)						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(in millions)
Currency exchange contracts			$	113					$	—					$	113					$	—
Commodity contracts			146						16						130						—
Interest rate contracts			66						—						66						—
Net investment hedge contracts			39						—						39						—
Equity method investment contracts			(5)						—						(5)						—
Total derivatives			$	359					$	16					$	343					$	—

			As of December 31, 2022
			Total Fair Value of Net Asset/(Liability)						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(in millions)
Currency exchange contracts			$	82					$	—					$	82					$	—
Commodity contracts			(47)						(35)						(12)						—
Interest rate contracts			105						—						105						—
Net investment hedge contracts			24						—						24						—
Equity method investment contracts			(3)						—						(3)						—
Total derivatives			$	161					$	(35)					$	196					$	—

Schedule of Notional Values of Derivative Instruments

The notional values of our hedging instruments were:

			Notional Amount
			As of June 30, 2023						As of December 31, 2022
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	2,762					$	2,085
Forecasted transactions			5,855						5,470
Commodity contracts (1)			12,104						7,777
Interest rate contracts			4,304						4,147
Net investment hedges:
Net investment hedge derivative contracts			7,792						7,319
Non-U.S. dollar debt designated as net investment hedges
Euro notes			3,475						3,410
Swiss franc notes			659						638
Canadian dollar notes			453						443

(1)Prior year notional value has been revised.

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