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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Instruments

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

			As of September 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			$	140					$	33					$	132					$	35
Net investment hedge derivative contracts (1)			238						166						265						241
			$	378					$	199					$	397					$	276
Derivatives not designated as    accounting hedges:
Currency exchange contracts			$	224					$	93					$	185					$	103
Commodity contracts			1,035						874						200						247
Interest rate contracts			10						6						8						—
Equity method investment contracts (2)			—						—						—						3
			$	1,269					$	973					$	393					$	353
Total fair value			$	1,647					$	1,172					$	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 the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 6, Investments.

Summary of Derivative Instrument Fair Value Measurement Inputs

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

			As of September 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			$	131					$	—					$	131					$	—
Commodity contracts			161						(41)						202						—
Interest rate contracts			111						—						111						—
Net investment hedge contracts			72						—						72						—
Total derivatives			$	475					$	(41)					$	516					$	—

			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 September 30, 2023						As of December 31, 2022
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	2,645					$	2,085
Forecasted transactions			5,776						5,470
Commodity contracts (1)			12,767						7,777
Interest rate contracts			3,384						4,147
Net investment hedges:
Net investment hedge derivative contracts			7,630						7,319
Non-U.S. dollar debt designated as net investment hedges:
Euro notes			3,368						3,410
Swiss franc notes			645						638
Canadian dollar notes			442						443

(1)Prior year notional value has been revised.

Schedule of Net Investment Hedges

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

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,
			2023						2022						2023						2022
			(in millions)
After-tax gain on NIH contracts(1)			$	72					$	440					$	89					$	788

(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 September 30,												For the Nine Months Ended September 30,
			2023						2022						2023						2022
			(in millions)
Amounts excluded from the assessment of hedge effectiveness(1)			$	38					$	32					$	110					$	84

(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 September 30,												For the Nine Months Ended September 30,
			2023						2022						2023						2022
			(in millions)
Euro notes			$	82					$	165					$	32					$	381
British pound sterling notes			—						20						—						47
Swiss franc notes			11						23						(5)						50
Canadian notes			9						24						1						31

Summary of Economic Hedges

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

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,												Location of Gain/(Loss) Recognized in Earnings
			2023						2022						2023						2022
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	—					$	(1)					$	47					$	(5)					Interest and other expense, net
Forecasted transactions			15						(9)						44						98						Cost of sales
Forecasted transactions			—						8						13						(23)						Interest and other expense, net
Forecasted transactions			(3)						(5)						(9)						(2)						Selling, general and administrative expenses
Commodity contracts			72						(31)						176						166						Cost of sales
Equity method investment    contracts			4						(3)						7						(3)						Gain/(loss) on equity method investment transactions
Total			$	88					$	(41)					$	278					$	231

Schedule of Contingent Consideration

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

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,
			2023						2022						2023						2022
			(in millions)
Liability at beginning of period			$	567					$	173					$	642					$	159
Contingent consideration arising from acquisitions			—						440						—						440
Changes in fair value			35						—						50						16
Payments			—						—						(90)						—
Currency			—						—						—						(2)
Liability at end of period			$	602					$	613					$	602					$	613

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

			As of September 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)			$	494					$	—					$	—					$	494
Other (2)			108						—						—						108
Total contingent consideration			$	602					$	—					$	—					$	602

			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 $108 million and $102 million classified as other current liabilities at September 30, 2023 and December 31, 2022, respectively, and $88 million classified as long-term liabilities at 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.

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