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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 30, 2025

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.

						Assets												Liabilities
						March 30, 2025						December 29, 2024						March 30, 2025						December 29, 2024
						(in millions)
Derivatives using the “hedge accounting” method:
Commodity contracts						$	34					$	13					$	7					$	37
Derivatives using the “mark-to-market” method:
Commodity contracts						13						2						4						7
Total fair value of derivative instruments						$	47					$	15					$	11					$	44

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.

			March 30, 2025
			Gross Amount of Derivative Assets/ Liabilities						Netting of Derivative Assets/ Liabilities						Net Derivative Assets/Liabilities						Netting of Derivative and Cash Collateral						Net Amount Presented in the Consolidated Balance Sheet (1)
			(in millions)
Assets:
Commodities			$	47					$	(9)					$	38					$	(1)					$	37
Liabilities:
Commodities			11						(9)						3						—						3

________________

(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. Cash collateral balances were not material.

			December 29, 2024
			Gross Amount of Derivative Assets/ Liabilities						Netting of Derivative Assets/ Liabilities						Net Derivative Assets/Liabilities						Netting of Derivative and Cash Collateral						Net Amount Presented in the Consolidated Balance Sheet (1)
			(in millions)
Assets:
Commodities			$	15					$	(13)					$	2					$	37					$	39
Liabilities:
Commodities			44						(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 of 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.

Schedule of Notional Amounts of Outstanding Derivative Positions

As of March 30, 2025, the notional volumes associated with open derivative instruments designated in cash flow hedging relationships were as follows:

			Volume						Metric
Lean hogs			722,379,000						Pounds
Corn			37,180,000						Bushels
Soybean meal			615,000						Tons
Natural Gas			4,880,000						Million BTU
Diesel			6,804,000						Gallons

As of March 30, 2025, the notional volumes associated with open derivative instruments designated in fair value hedging relationships were as follows:

			Volume						Metric
Lean hogs			30,640,000						Pounds
Corn			3,635,000						Bushels
Soybeans			420,000						Bushels

Schedule of Pre-tax Gains and Losses on Derivative Instruments

The following table presents the effects on our condensed 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
			Three Months Ended															Three Months Ended
			March 30, 2025						March 31, 2024												March 30, 2025						March 31, 2024
			(in millions)
Commodity contracts			$	45					$	(61)											$	(10)					$	(3)

As of March 30, 2025, the notional volumes associated with open derivative instruments using the “mark-to-market” method were as follows:

			Volume						Metric
Commodities:
Lean hogs			8,746,000						Pounds
Corn			19,322,000						Bushels
Soybean meal			70,000						Tons
Soybeans			2,995,000						Bushels
Natural gas			106,000						Million BTU
Diesel			756,000						Gallons

The following table presents the effect of derivatives on the condensed consolidated statements of income for the periods indicated.

															Three Months Ended
															March 30, 2025						March 31, 2024
															(in millions)
Sales
Cash flow hedging - commodity contracts															$	(9)					$	1
Mark to market - commodity contracts															7						(13)
Total derivative loss recognized sales															(2)						(12)
Cost of Sales
Cash flow hedging - commodity contracts															(2)						(4)
Fair value hedging - commodity contracts
Change in fair value of open derivatives															2						(1)
Change in fair value of related hedged items															(1)						1
Gain on closed derivatives (1)															1						4
Mark to market - commodity contracts															4						(5)
Total derivative gain (loss) recognized in cost of sales															4						(5)
Selling, general and administrative expenses
Mark to market - foreign exchange contracts															—						1
Total derivative gain (loss)															$	2					$	(16)

________________

(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.

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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.

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