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Financial Instruments
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments
Note 8. Financial Instruments

Derivatives and Hedging Activities

Fair Value of Derivative Instruments
Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows:
 As of March 31, 2025As of December 31, 2024
Asset
Derivatives		Liability
Derivatives		Asset
Derivatives		Liability
Derivatives
 (in millions)
Derivatives designated as
accounting hedges:
Interest rate contracts (1)
$63 $60 $84 $35 
Net investment hedge derivative contracts (2)
244 201 305 50 
$307 $261 $389 $85 
Derivatives not designated as
   accounting hedges:
Currency exchange contracts$176 $146 $302 $118 
Commodity contracts911 752 2,205 1,522 
Interest rate contracts3 — 3 — 
$1,090 $898 $2,510 $1,640 
Total fair value$1,397 $1,159 $2,899 $1,725 

(1)Interest rate contracts designated as cash flow hedging instruments.
(2)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 7, 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.

We recorded the fair value of our derivative instruments in the condensed consolidated balance sheets as follows:

 As of March 31, 2025As of December 31, 2024
 (in millions)
Other current assets
$1,164 $2,545 
Other assets
233 354 
Other current liabilities
1,000 1,641 
Other liabilities
159 84 

The fair values (asset/(liability)) of our derivative instruments were determined using:
 As of March 31, 2025
 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$30 $— $30 $— 
Commodity contracts159 106 53 — 
Interest rate contracts6 — 6 — 
Net investment hedge contracts43 — 43 — 
Total derivatives$238 $106 $132 $— 
 As of December 31, 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$184 $— $184 $— 
Commodity contracts683 (111)794 — 
Interest rate contracts52 — 52 — 
Net investment hedge contracts255 — 255 — 
Total derivatives$1,174 $(111)$1,285 $— 

Level 1 financial assets and liabilities consist of exchange-traded commodity futures and listed options. The fair value of these instruments is determined based on quoted market prices on commodity exchanges.

Level 2 financial assets and liabilities consist primarily of over-the-counter (“OTC”) currency exchange forwards, options and swaps; commodity forwards and options; net investment hedge contracts; and interest rate swaps. Our currency exchange contracts are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the observable market interest rate curve. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Our OTC derivative transactions are governed by International Swap Dealers Association agreements and other standard industry contracts. Under these agreements, we do not post nor require collateral from our counterparties. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties.

Derivative Volume
The gross notional values of our hedging instruments were:
 Notional Amount
 As of March 31,
2025		As of December 31, 2024
 (in millions)
Currency exchange contracts
$16,284 $13,538 
Commodity contracts
17,142 16,210 
Interest rate contracts4,536 5,336 
Net investment hedges:
Net investment hedge derivative contracts9,421 8,647 
Non-U.S. dollar debt designated as net investment hedges:
Euro notes
3,446 3,298 
Swiss franc notes
226 220 
Canadian dollar notes
452 869 

Cash Flow Hedges
Cash flow hedge activity, net of taxes, is recorded within accumulated other comprehensive earnings/(losses). Refer to Note 12, Reclassifications from Accumulated Other Comprehensive Income for additional information on current period activity. Based on current market conditions, we would expect to transfer losses of $24 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months.

Cash Flow Hedge Coverage
As of March 31, 2025, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 4 years.
Hedges of Net Investments in International Operations

Net investment hedge ("NIH") derivative contracts
We enter into cross-currency interest rate swaps, forwards and options to hedge certain investments in our non-U.S. operations against movements in exchange rates. As of March 31, 2025, the aggregate notional value was $9.4 billion.

Net investment hedge derivative contract impacts on other comprehensive earnings and net earnings were:
 For the Three Months Ended
March 31,
 20252024
 (in millions)
(Loss)/gain on NIH contracts (1)
$(201)$220 
Amounts excluded from the assessment of hedge effectiveness (2)
57 41 

(1)Amounts recorded for unsettled and settled NIH derivative contracts are recorded within the cumulative translation adjustment section of other comprehensive earnings/(losses).
(2)We assess the effectiveness of NIH relationships based on spot rates and amortize the initial value attributable to the excluded component to earnings over the life of the hedging instrument within interest and other expense, net.

Non-U.S. dollar debt designated as net investment hedges
Gains/(losses) related to non-U.S. dollar debt designated as hedges of net investments in international operations, which are recorded within the cumulative translation adjustment section of other comprehensive earnings/(losses), were:

 For the Three Months Ended
March 31,
 20252024
 (in millions)
Euro notes$(147)$79 
Swiss franc notes(6)26 
Canadian notes— 10 

Derivatives Not Designated as Accounting Hedges
For derivatives not designated as accounting hedges ("economic hedges"), we classify gains and losses in the income statement based on the classification of the item economically hedged. Pre-tax gains/(losses) recorded in net earnings for economic hedges were:

 For the Three Months Ended
March 31,
 20252024
 (in millions)
Currency exchange contracts:
Cost of sales
$(131)$25 
Selling, general and administrative expenses
— 7 
Interest and other expense, net
90 56 
Commodity contracts - Cost of sales
(409)1,184 
Total$(450)$1,272 
Fair Value of Contingent Consideration
The following is a summary of our contingent consideration liability activity:

 For the Three Months Ended
March 31,
 20252024
 (in millions)
Liability at beginning of period$179 $680 
Changes in fair value
(12)23 
Liability at end of period$167 $703 

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

 As of March 31, 2025
 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)
$99 $— $— $99 
Other (2)
68 — — 68 
Total contingent consideration$167 $— $— $167 

 As of December 31, 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)
$124 $— $— $124 
Other (2)
55 — — 55 
Total contingent consideration$179 $— $— $179 

(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 possible payments range from zero to a maximum total of $2.4 billion, with higher payouts requiring the achievement of targets that generate rates of returns in excess of the base financial projections. The contingent consideration liabilities are recorded at fair value and primarily recorded in other liabilities as of March 31, 2025 and December 31, 2024. 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.
(2)The other contingent consideration liabilities are recorded at fair value and recorded in other liabilities as of March 31, 2025 and December 31, 2024. Fair value adjustments were recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings.