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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments on a Gross Basis The following table presents the fair values of our open derivative financial instruments on a gross basis.
AssetsLiabilities
December 29,
2024		December 31,
2023		December 29,
2024		December 31,
2023
(in millions)(in millions)
Derivatives using the “hedge accounting” method:
Commodity contracts$13 $37 $37 $29 
Foreign exchange contracts— 1 — — 
Total13 38 37 29 
Derivatives using the “mark-to-market” method:
Commodity contracts2 13 7 13 
Total fair value of derivative instruments$15 $51 $44 $42 
Schedule of Derivative Assets and Liabilities
The following tables reconcile the gross amounts of derivative assets and liabilities to the net amounts presented in our consolidated balance sheets and the related effects of cash collateral under netting arrangements that provide a legal right of offset of assets and liabilities.
December 29, 2024
Gross Amount of Derivative Assets/ LiabilitiesNetting of Derivative Assets/ LiabilitiesNet Derivative Assets/LiabilitiesNetting of Derivative and Cash Collateral
Net Amount Presented in the Consolidated Balance Sheet (1)
(in millions)
Assets:
Commodities$15 $(13)$2 $37 $39 
Liabilities:
Commodities44 (13)31 (23)8 
________________
(1)Net derivative assets are recorded in prepaid expenses and other current assets. Net derivative liabilities are recorded in accrued expenses and other current liabilities. These balances include $60 million in cash collateral paid to and held by one of our brokers, $37 million of which represents the initial margin and exceeded the related open derivative liability position.
December 31, 2023
Gross Amount of Derivative Assets/ LiabilitiesNetting of Derivative Assets/ LiabilitiesNet Derivative Assets/LiabilitiesNetting of Derivative and Cash Collateral
Net Amount Presented in the Consolidated Balance Sheet (1)
(in millions)
Assets:
Commodities$50 $(25)$25 $(1)$24 
Foreign exchange contracts1 — 1 — 1 
Total$51 $(25)$26 $(1)$26 
Liabilities:
Commodities42 (25)18 1 19 
________________
(1)We recorded $25 million of net assets in prepaid expenses and other current assets with the remaining $1 million in current assets of discontinued operations. We recorded $14 million of the net liabilities in accrued expenses and other current liabilities with the remaining $5 million in other liabilities.
Schedule of Notional Amounts of Outstanding Derivative Positions
As of December 29, 2024, the notional volumes associated with open derivative instruments designated in cash flow hedging relationships were as follows:
VolumeMetric
Lean hogs1,006,669,000 Pounds
Corn41,593,000 Bushels
Soybean meal719,000 Tons
Natural Gas
6,260,000 Million BTU
     Diesel 7,560,000 Gallons
As of December 29, 2024, the notional volumes associated with open derivative instruments designated in fair value hedging relationships were as follows:
VolumeMetric
Lean hogs10,440,000 Pounds
Corn2,980,000 Bushels
Soybeans245,000 Bushels
Schedule of Pre-tax Gains and Losses on Derivative Instruments
The following table presents the effects on our consolidated financial statements of pre-tax gains and losses on derivative instruments designated in cash flow hedging relationships for the periods indicated:
Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Derivative
Gains (Losses) Reclassified from Accumulated Other Comprehensive Loss into Earnings
Fiscal YearFiscal Year
202420232022202420232022
(in millions)(in millions)
Commodity contracts$(56)$10 $58 (10)13 97 
Interest rate swaps— — — (2)(2)(1)
Foreign exchange contracts1 2 — 1 1 (1)
Total$(55)$11 $58 $(11)$13 $94 
As of December 29, 2024, the notional volumes associated with open derivative instruments using the “mark-to-market” method were as follows:
VolumeMetric
Commodities:
Lean hogs10,240,000 Pounds
Corn24,231,000 Bushels
Soybean meal72,000 Tons
Soybeans445,000 Bushels
Diesel756,000 Gallons
Foreign currency2,985,178 U.S. Dollars
The following table presents the effect of derivatives on the consolidated statements of income for the periods indicated:
Fiscal Year
202420232022
(in millions)
Sales
Cash flow hedging - commodity contracts$18 $12 $(30)
Mark to market - commodity contracts(16)30 (35)
Total derivative gain (loss) recognized sales2 42 (65)
Cost of Sales
Cash flow hedging - commodity contracts(28)— 127 
Fair value hedging - commodity contracts
Change in fair value of open derivatives4 17 (24)
Change in fair value of related hedged items(5)(17)24 
Gain (loss) on closed derivatives (1)
10 5 (28)
Mark to market - commodity contracts(10)(14)20 
Total derivative gain (loss) recognized in cost of sales(28)(9)119 
Selling, general and administrative expenses
Mark to market - foreign exchange contracts
(2)— 1 
Interest expense
Cash flow hedging - interest rate contracts(2)(2)(1)
Discontinued operations
Cash flow hedging - foreign exchange contracts
1 1 (1)
Mark to market - foreign exchange contracts
3 2 4 
Total derivative gain (loss) recognized in discontinued operations
4 3 3 
Total derivative gain (loss)$(25)$36 $56 
________________
(1)Represents the amount of fair value hedge adjustment applied to the carrying amount of hedged assets that is recognized in cost of sales as the underlying hedged assets are relieved from inventories and charged to cost of sales.