XML 56 R35.htm IDEA: XBRL DOCUMENT
v3.24.2

Financial Instruments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2024
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 June 30, 2024 |  | As of December 31, 2023
| Asset Derivatives |  | Liability Derivatives |  | Asset Derivatives |  | Liability Derivatives
| (in millions)
Derivatives designated as accounting hedges: |  |  |  |  |  |  |
Interest rate contracts | $ | 145 |  |  | $ | 59 |  |  | $ | 120 |  |  | $ | 57 |
Net investment hedge derivative contracts (1) | 229 |  |  | 128 |  |  | 163 |  |  | 382 |
| $ | 374 |  |  | $ | 187 |  |  | $ | 283 |  |  | $ | 439 |
Derivatives not designated as accounting hedges: |  |  |  |  |  |  |
Currency exchange contracts | $ | 213 |  |  | $ | 85 |  |  | $ | 195 |  |  | $ | 134 |
Commodity contracts | 4,912 |  |  | 4,221 |  |  | 1,119 |  |  | 984 |
Interest rate contracts | 1 |  |  | — |  |  | — |  |  | 2 |
| $ | 5,126 |  |  | $ | 4,306 |  |  | $ | 1,314 |  |  | $ | 1,120 |
Total fair value | $ | 5,500 |  |  | $ | 4,493 |  |  | $ | 1,597 |  |  | $ | 1,559 |
(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.
Fair Value of Offsetting Assets | We recorded the fair value of our derivative instruments in the condensed consolidated balance sheet as follows:
| As of June 30, 2024 | As of December 31, 2023
| (in millions)
Other current assets | $ | 5,082 |  |  | $ | 1,347 |
Other assets | 418 |  |  | 250 |
Other current liabilities | 4,139 |  |  | 1,209 |
Other liabilities | 354 |  |  | 350 |
Fair Value of Offsetting Liabilities | We recorded the fair value of our derivative instruments in the condensed consolidated balance sheet as follows:
| As of June 30, 2024 | As of December 31, 2023
| (in millions)
Other current assets | $ | 5,082 |  |  | $ | 1,347 |
Other assets | 418 |  |  | 250 |
Other current liabilities | 4,139 |  |  | 1,209 |
Other liabilities | 354 |  |  | 350 |
Summary of Derivative Instrument Fair Value Measurement Inputs | The fair values (asset/(liability)) of our derivative instruments were determined using:
| As of June 30, 2024
| 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 | $ | 128 |  |  | $ | — |  |  | $ | 128 |  |  | $ | — |
Commodity contracts | 691 |  |  | (58) |  |  | 749 |  |  | — |
Interest rate contracts | 87 |  |  | — |  |  | 87 |  |  | — |
Net investment hedge contracts | 101 |  |  | — |  |  | 101 |  |  | — |
Total derivatives | $ | 1,007 |  |  | $ | (58) |  |  | $ | 1,065 |  |  | $ | — |
| As of December 31, 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 | $ | 61 |  |  | $ | — |  |  | $ | 61 |  |  | $ | — |
Commodity contracts | 135 |  |  | 28 |  |  | 107 |  |  | — |
Interest rate contracts | 61 |  |  | — |  |  | 61 |  |  | — |
Net investment hedge contracts | (219) |  |  | — |  |  | (219) |  |  | — |
Total derivatives | $ | 38 |  |  | $ | 28 |  |  | $ | 10 |  |  | $ | — |
Schedule of Notional Values of Derivative Instruments | The notional values of our hedging instruments were:
| Notional Amount
| As of June 30, 2024 |  | As of December 31, 2023
| (in millions)
Currency exchange contracts: |  |  |
Intercompany loans and forecasted interest payments | $ | 6,736 |  |  | $ | 2,860 |
Forecasted transactions | 7,732 |  |  | 5,550 |
Commodity contracts | 20,536 |  |  | 16,631 |
Interest rate contracts | 4,136 |  |  | 2,384 |
Net investment hedges: |  |  |
Net investment hedge derivative contracts | 8,033 |  |  | 7,456 |
Non-U.S. dollar debt designated as net investment hedges: |  |  |
Euro notes | 3,413 |  |  | 3,516 |
Swiss franc notes | 362 |  |  | 386 |
Canadian dollar notes | 439 |  |  | 453 |
Schedule of Net Investment Hedges | 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,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (in millions)
After-tax gain/(loss) on NIH contracts (1) | $ | 16 |  |  | $ | 22 |  |  | $ | 185 |  |  | $ | 17 |
(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,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (in millions)
Amounts excluded from the assessment of hedge effectiveness (1) | $ | 46 |  |  | $ | 36 |  |  | $ | 87 |  |  | $ | 72 |
(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,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (in millions)
Euro notes | $ | 18 |  |  | $ | (17) |  |  | $ | 79 |  |  | $ | (50) |
Swiss franc notes | (1) |  |  | (11) |  |  | 19 |  |  | (16) |
Canadian notes | 3 |  |  | (7) |  |  | 11 |  |  | (8) |
Summary of Economic Hedges | 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
| 2024 |  | 2023 |  | 2024 |  | 2023 |
| (in millions) |  |
Currency exchange contracts: |  |  |  |  |  |  |  |  |
Intercompany loans and forecasted interest payments | $ | 12 |  |  | $ | 25 |  |  | $ | 68 |  |  | $ | 47 |  |  | Interest and other expense, net
Forecasted transactions | (2) |  |  | 27 |  |  | 23 |  |  | 29 |  |  | Cost of sales
Forecasted transactions | (2) |  |  | 8 |  |  | (2) |  |  | 13 |  |  | Interest and other expense, net
Forecasted transactions | (6) |  |  | (1) |  |  | 1 |  |  | (6) |  |  | Selling, general and administrative expenses
Commodity contracts | (255) |  |  | 106 |  |  | 929 |  |  | 104 |  |  | Cost of sales
Equity method investment contracts (1) | — |  |  | 1 |  |  | — |  |  | 3 |  |  | Gain on equity method investment transactions
Total | $ | (253) |  |  | $ | 166 |  |  | $ | 1,019 |  |  | $ | 190 |  |  |
(1) 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 and terminates on September 20, 2024. Refer to Note 6, Investments.
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,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (in millions)
Liability at beginning of period | $ | 703 |  |  | $ | 659 |  |  | $ | 680 |  |  | $ | 642 |
Changes in fair value | 12 |  |  | (2) |  |  | 35 |  |  | 15 |
Payments | (54) |  |  | (90) |  |  | (54) |  |  | (90) |
Liability at end of period | $ | 661 |  |  | $ | 567 |  |  | $ | 661 |  |  | $ | 567 |
Contingent consideration was recorded at fair value in the condensed consolidated balance sheets as follows:
| As of June 30, 2024
| 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) | $ | 568 |  |  | $ | — |  |  | $ | — |  |  | $ | 568 |
Other (2) | 93 |  |  | — |  |  | — |  |  | 93 |
Total contingent consideration | $ | 661 |  |  | $ | — |  |  | $ | — |  |  | $ | 661 |
| As of December 31, 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) | $ | 548 |  |  | $ | — |  |  | $ | — |  |  | $ | 548 |
Other (2) | 132 |  |  | — |  |  | — |  |  | 132 |
Total contingent consideration | $ | 680 |  |  | $ | — |  |  | $ | — |  |  | $ | 680 |
(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. (2)The other contingent consideration liabilities are recorded at fair value, with $93 million and $132 million classified as other current liabilities at June 30, 2024 and December 31, 2023, respectively. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Payment is expected to be made in the third quarter of 2024, and the majority will be classified within cash flows provided by operating activities in the consolidated statement of cash flows.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-11 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of contingent payment arrangements including the terms that will result in payment and the accounting treatment that will be followed if such contingencies occur, including the potential impact on earnings per share if contingencies are to be settled in common stock of the entity. The description also may include the period over which amounts are expected to be paid, and changes in the amount since the previous reporting period. This also includes contingent options and commitments. + References No definition available. + Details
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionContingentConsiderationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4E -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4E Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4A + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4B + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effective portion of gains and losses on derivative instruments (and nonderivative instruments) designated and qualifying in net investment hedges recorded in accumulated other comprehensive income (loss) during the term of the hedging relationship and reclassified into earnings during the current period. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4CCC -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4CCC + Details
Name: | us-gaap_ScheduleOfNetInvestmentHedgesInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration