XML 74 R36.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative Financial Instruments (Tables)
 3 Months Ended
Dec. 28, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of Derivative Instruments [Table Text Block]
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
in millions, except soy meal tons
Metric
 
December 28, 2019
 
September 28, 2019
Commodity:
 
 
 
 
 
Corn
Bushels
 
115

 
111

Soy Meal
Tons
 
1,281,300

 
1,078,800

Live Cattle
Pounds
 
5

 
14

Lean Hogs
Pounds
 
199

 
309

Foreign Currency
United States dollar
 
$
364

 
$
148

Interest Rate Swaps
Average monthly debt
 
$
400

 
$
400
Derivative Instruments, Gain (Loss) [Table Text Block]
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
December 28, 2019
 
December 29, 2018
Sales
Gain (Loss) on derivatives not designated as hedging instruments:
 
 
 
 
Commodity contracts
$
—

 
$
1

 
 
 
 
 
Cost of Sales
Gain (Loss) on cash flow hedges reclassified from OCI to Earnings:
 
 
 
 
Commodity contracts
$
(2
)
 
$
(7
)
 
Gain (Loss) on fair value hedges:
 
 
 
 
Commodity contracts
16

 
(1
)
 
Hedged item
(16
)
 
1

 
Gain (Loss) on derivatives not designated as hedging instruments:
 
 
 
 
Commodity contracts
29

 
3

Total
 
$
27

 
$
(4
)
 
 
 
 
 
Interest Expense
Gain (Loss) on cash flow hedges reclassified from OCI to Earnings:
 
 
 
 
Interest rate contracts
$
(1
)
 
$
—

 
 
 
 
 
Other Income/(Expense)
Gain (Loss) on derivatives not designated as hedging instruments:
 
 
 
 
Foreign exchange contracts
$
4

 
$
—
Schedule of Income Statement Items Impacted by Derivatives [Table Text Block]
The following table sets forth the total amounts of each income and expense line item presented in the Consolidated Condensed Statements of Income in which the effects of hedges are recorded (in millions):
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
December 28, 2019
 
December 29, 2018
Cost of Sales
 
$
9,375

 
$
8,838

Interest Expense
 
120

 
99

Other Income/(Expense)
 
(16
)
 
(3
)
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative Instruments, Gain (Loss) [Table Text Block] The following table sets forth the pretax impact of cash flow hedge derivative instruments recognized in Other Comprehensive Income (in millions):
 
Gain (Loss) Recognized in OCI
On Derivatives
 
 
Three Months Ended
 
December 28, 2019
 
December 29, 2018
Cash flow hedge – derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
—

 
$
(2
)
Interest rate hedges
—

 
(18
)
Total
$
—

 
$
(20
)
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] The carrying amount of fair value hedge assets (liabilities) as of December 28, 2019 and September 28, 2019 were as follows (in millions):
Consolidated Condensed
Balance Sheets Classification
 
 
December 28, 2019
 
September 28, 2019
Inventory
 
 
$
(1
)
 
$
(19
)