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Derivative Instruments and Fair Value Measurements (Tables) | 3 Months Ended
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Apr. 02, 2022
Derivative Instruments and Fair Value Measurements [Abstract] |
Schedule of Total Notional Amounts of Derivative Instruments | Total notional amounts of the Company’s derivative instruments as of April 2, 2022 and January 1, 2022 were as follows:
(millions) | April 2, 2022 | January 1, 2022
Foreign currency exchange contracts | $ | 3,095 |  | $ | 2,828 |
Cross-currency contracts | 1,744 |  | 1,343 |
Interest rate contracts | 2,789 |  | 2,816 |
Commodity contracts | 427 |  | 360 |
Total | $ | 8,055 |  | $ | 7,347 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of April 2, 2022 and January 1, 2022: Derivatives designated as hedging instruments
| April 2, 2022 |  | January 1, 2022
(millions) | Level 1 | Level 2 | Total |  | Level 1 | Level 2 | Total
Assets: |  |  |  |  |  |  |
Cross-currency contracts: |  |  |  |  |  |  |
Other current assets | $ | — |  | $ | 39 |  | $ | 39 |  |  | $ | — |  | $ | 32 |  | $ | 32 |
Other assets | — |  | 22 |  | 22 |  |  | — |  | 15 |  | 15 |
Interest rate contracts(a): |  |  |  |  |  |  |
Other current assets | — |  | 3 |  | 3 |  |  | — |  | 10 |  | 10 |
Other assets | — |  | 6 |  | 6 |  |  | — |  | 8 |  | 8 |
Total assets | $ | — |  | $ | 70 |  | $ | 70 |  |  | $ | — |  | $ | 65 |  | $ | 65 |
Liabilities: |  |  |  |  |  |  |
Cross-currency contracts: |  |  |  |  |  |  |
Other current liabilities | $ | — |  | $ | — |  | $ | — |  |  | $ | — |  | $ | (2) |  | $ | (2) |
Other liabilities | — |  | (27) |  | (27) |  |  | — |  | (7) |  | (7) |
Interest rate contracts: |  |  |  |  |  |  |
Other current liabilities | — |  | (1) |  | (1) |  |  | — |  | (1) |  | (1) |
Other liabilities | — |  | (40) |  | (40) |  |  | — |  | (4) |  | (4) |
Total liabilities | $ | — |  | $ | (68) |  | $ | (68) |  |  | $ | — |  | $ | (14) |  | $ | (14) |
(a) The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $1.1 billion as of April 2, 2022 and $1.2 billion as of January 1, 2022. Derivatives not designated as hedging instruments
| April 2, 2022 |  | January 1, 2022
(millions) | Level 1 | Level 2 | Total |  | Level 1 | Level 2 | Total
Assets: |  |  |  |  |  |  |
Foreign currency exchange contracts: |  |  |  |  |  |  |
Other current assets | $ | — |  | $ | 43 |  | $ | 43 |  |  | $ | — |  | $ | 18 |  | $ | 18 |
Other assets | — |  | 3 |  | 3 |  |  | — |  | 5 |  | 5 |
Interest rate contracts: |  |  |  |  |  |  |
Other current assets | — |  | 2 |  | 2 |  |  | — |  | 4 |  | 4 |
Other assets | — |  | 5 |  | 5 |  |  | — |  | — |  | — |
Commodity contracts: |  |  |  |  |  |  |
Other current assets | 6 |  | — |  | 6 |  |  | 5 |  | — |  | 5 |
Total assets | $ | 6 |  | $ | 53 |  | $ | 59 |  |  | $ | 5 |  | $ | 27 |  | $ | 32 |
Liabilities: |  |  |  |  |  |  |
Foreign currency exchange contracts: |  |  |  |  |  |  |
Other current liabilities | $ | — |  | $ | (60) |  | $ | (60) |  |  | $ | — |  | $ | (20) |  | $ | (20) |
Other liabilities | — |  | (4) |  | (4) |  |  | — |  | (6) |  | (6) |
Interest rate contracts: |  |  |  |  |  |  |
Other current liabilities | — |  | (4) |  | (4) |  |  | — |  | (6) |  | (6) |
Other liabilities | — |  | (11) |  | (11) |  |  | — |  | (7) |  | (7) |
Commodity contracts: |  |  |  |  |  |  |
Other current liabilities | (7) |  | — |  | (7) |  |  | (6) |  | — |  | (6) |
Total liabilities | $ | (7) |  | $ | (79) |  | $ | (86) |  |  | $ | (6) |  | $ | (39) |  | $ | (45) |
Schedule of Derivative Instruments in Statement of Financial Position Fair Value | The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of April 2, 2022 and January 1, 2022.
(millions) |  | Line Item in the Consolidated Balance Sheet in which the hedged item is included |  | Carrying amount of the hedged liabilities |  | Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a)
|  |  |  | April 2, 2022 | January 1, 2022 |  | April 2, 2022 | January 1, 2022
Interest rate contracts |  | Current maturities of long-term debt |  | $ | 208 |  | $ | — |  |  | $ | (3) |  | $ | — |
Interest rate contracts |  | Long-term debt |  | $ | 2,616 |  | $ | 2,903 |  |  | $ | (26) |  | $ | 12 |
(a) The fair value adjustment related to current maturities of long-term debt includes ($3) million from discontinued hedging relationships as of April 2, 2022. The fair value adjustment related to long-term debt includes $15 million and $13 million from discontinued hedging relationships as of April 2, 2022 and January 1, 2022, respectively.
Schedule of Offsetting Assets |
As of April 2, 2022: |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |
| Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount
Total asset derivatives | $ | 129 |  | $ | (106) |  | $ | — |  | $ | 23 |
Total liability derivatives | $ | (154) |  | $ | 106 |  | $ | 37 |  | $ | (11) |
As of January 1, 2022: |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |
| Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount
Total asset derivatives | $ | 97 |  | $ | (47) |  | $ | 8 |  | $ | 58 |
Total liability derivatives | $ | (59) |  | $ | 47 |  | $ | 12 |  | $ | — |
Schedule of Offsetting Liabilities |
As of April 2, 2022: |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |
| Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount
Total asset derivatives | $ | 129 |  | $ | (106) |  | $ | — |  | $ | 23 |
Total liability derivatives | $ | (154) |  | $ | 106 |  | $ | 37 |  | $ | (11) |
As of January 1, 2022: |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |
| Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount
Total asset derivatives | $ | 97 |  | $ | (47) |  | $ | 8 |  | $ | 58 |
Total liability derivatives | $ | (59) |  | $ | 47 |  | $ | 12 |  | $ | — |
Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended April 2, 2022 and April 3, 2021 was as follows: Derivatives and non-derivatives in net investment hedging relationships
(millions) | Gain (loss) recognized in AOCI |  | Gain (loss) excluded from assessment of hedge effectiveness | Location of gain (loss) in income of excluded component
| April 2, 2022 |  | April 3, 2021 |  | April 2, 2022 |  | April 3, 2021 |
Foreign currency denominated long-term debt | $ | 68 |  |  | $ | 103 |  |  | $ | — |  |  | $ | — |  |
Cross-currency contracts | 33 |  |  | 27 |  |  | 6 |  |  | 5 |  | Interest expense
Total | $ | 101 |  |  | $ | 130 |  |  | $ | 6 |  |  | $ | 5 |  |
Derivatives not designated as hedging instruments
(millions) | Location of gain (loss) recognized in income | Gain (loss) recognized in income
|  | April 2, 2022 |  | April 3, 2021
Foreign currency exchange contracts | COGS | $ | (12) |  |  | $ | (17) |
Foreign currency exchange contracts | Other income (expense), net | (2) |  |  | (1) |
Foreign currency exchange contracts | SG&A | 1 |  |  | 4 |
Interest rate contracts | Interest expense | 1 |  |  | 1 |
Commodity contracts | COGS | 112 |  |  | 12 |
Total |  | $ | 100 |  |  | $ | (1) |
The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the quarters ended April 2, 2022 and April 3, 2021:
|  |  |  |  |  | April 2, 2022 |  |  |  | April 3, 2021
(millions) |  |  |  | Interest Expense |  |  |  | Interest Expense
Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded |  |  |  | $ | 56 |  |  |  |  | $ | 59 |
| Gain (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |
| Interest contracts: |  |  |  |  |  |  |  |
| Hedged items |  |  |  | 41 |  |  |  |  | 6 |
| Derivatives designated as hedging instruments |  |  |  | (40) |  |  |  |  | (7) |
| Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
| Interest contracts: |  |  |  |  |  |  |  |
| Amount of gain (loss) reclassified from AOCI into income |  |  |  | (4) |  |  |  |  | (5) |
Schedule of Available-for-sale Securities Reconciliation |
| April 2, 2022 |  | January 1, 2022
|  | Unrealized |  |  |  | Unrealized |
(millions) | Cost | Gain (Loss) | Market Value |  | Cost | Gain (Loss) | Market Value
Corporate bonds | $ | 52 |  | $ | (3) |  | $ | 49 |  |  | $ | 52 |  | $ | — |  | $ | 52 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
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- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
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- Definition Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value. + References No definition available. + Details
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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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