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Financial Instruments (Tables)

9 Months Ended

Sep. 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 September 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			$	81					$	81					$	120					$	57
Net investment hedge derivative contracts (1)			166						391						163						382
			$	247					$	472					$	283					$	439
Derivatives not designated as    accounting hedges:
Currency exchange contracts			$	210					$	97					$	195					$	134
Commodity contracts			2,093						2,073						1,119						984
Interest rate contracts			1						3						—						2
			$	2,304					$	2,173					$	1,314					$	1,120
Total fair value			$	2,551					$	2,645					$	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 September 30, 2024						As of December 31, 2023
			(in millions)
Other current assets			$	2,225					$	1,347
Other assets			326						250
Other current liabilities			2,242						1,209
Other liabilities			403						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 September 30, 2024						As of December 31, 2023
			(in millions)
Other current assets			$	2,225					$	1,347
Other assets			326						250
Other current liabilities			2,242						1,209
Other liabilities			403						350

Summary of Derivative Instrument Fair Value Measurement Inputs

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

			As of September 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			$	113					$	—					$	113					$	—
Commodity contracts			20						(69)						89						—
Interest rate contracts			(2)						—						(2)						—
Net investment hedge contracts			(225)						—						(225)						—
Total derivatives			$	(94)					$	(69)					$	(25)					$	—

			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 September 30, 2024						As of December 31, 2023
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	7,712					$	2,860
Forecasted transactions			9,213						5,550
Commodity contracts			15,467						16,631
Interest rate contracts			5,836						2,384
Net investment hedges:
Net investment hedge derivative contracts			8,878						7,456
Non-U.S. dollar debt designated as net investment hedges:
Euro notes			3,547						3,516
Swiss franc notes			237						386
Canadian dollar notes			924						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 September 30,												For the Nine Months Ended September 30,
			2024						2023						2024						2023
			(in millions)
After-tax (loss)/gain on NIH contracts (1)			$	(250)					$	72					$	(65)					$	89

(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,
			2024						2023						2024						2023
			(in millions)
Amounts excluded from the assessment of hedge effectiveness (1)			$	45					$	38					$	132					$	110

(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,
			2024						2023						2024						2023
			(in millions)
Euro notes			$	(102)					$	82					$	(23)					$	32
Swiss franc notes			(18)						11						1						(5)
Canadian notes			(9)						9						2						1

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
			2024						2023						2024						2023
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	(67)					$	—					$	1					$	47					Interest and other expense, net
Forecasted transactions			(13)						15						10						44						Cost of sales
Forecasted transactions			(1)						—						(3)						13						Interest and other expense, net
Forecasted transactions			1						(3)						2						(9)						Selling, general and administrative expenses
Commodity contracts			14						72						943						176						Cost of sales
Equity method investment contracts (1)			—						4						—						7						Gain on equity method investment transactions
Total			$	(66)					$	88					$	953					$	278

(1) Equity method investment contracts consisted of the bifurcated embedded derivative option that were a component of the September 20, 2021 €300 million exchangeable bonds issuance and expired 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 September 30,												For the Nine Months Ended September 30,
			2024						2023						2024						2023
			(in millions)
Liability at beginning of period			$	661					$	567					$	680					$	642
Changes in fair value (1)			(350)						35						(315)						50
Payments			(93)						—						(147)						(90)
Liability at end of period			$	218					$	602					$	218					$	602

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

			As of September 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)			$	218					$	—					$	—					$	218
Total contingent consideration			$	218					$	—					$	—					$	218

			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 contingent consideration liabilities are recorded at fair value within long-term liabilities. The estimated fair value of the contingent consideration obligation is determined using a Monte Carlo simulation. 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. During the three months ended September 30, 2024, the expected forecast for 2025 and 2026 has been updated to reflect recent trends in business performance and market outlook which resulted in a reduction in the fair value of the contingent consideration.

(2)The other contingent consideration liabilities were recorded at fair value, with $132 million classified as other current liabilities at December 31, 2023. Fair value adjustments were recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings through the second quarter of 2024. Payments on outstanding amounts as of December 31, 2023 were made in the second and third quarter of 2024, and the majority was classified within cash flows provided by operating activities in the consolidated statement of cash flows.

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