Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.22.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Apr. 01, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets and liabilities measured at fair value on a recurring basis
The following tables summarize assets and liabilities measured at fair value on a recurring basis (in millions):
April 1, 2022 Level 1 Level 2 Level 3
Other3
Netting
Adjustment
4
 Fair Value
Measurements
Assets:          
Equity securities with readily determinable values1
$ 2,258  $ 220  $ 16  $ 101  $ —  $ 2,595 
Debt securities1
—  1,822  11 

—  —  1,833 
Derivatives2
154  510  —  —  (432)
6
 232 
8
Total assets $ 2,412  $ 2,552  $ 27  $ 101  $ (432) $ 4,660 
Liabilities:          
Contingent consideration liability $ —  $ —  $ 612 
5
 $ —  $ —  $ 612 
Derivatives2
—  592  —  —  (580)
7
 12 
8
Total liabilities $ —  $ 592  $ 612  $ —  $ (580) $ 624 
1Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities.
2Refer to Note 6 for additional information related to the composition of our derivatives portfolio.
3Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4.
4Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 6.
5Represents the fair value of future milestone payments related to our acquisition of fairlife in 2020, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling.
6The Company is obligated to return $70 million in cash collateral it has netted against its derivative positions.
7The Company has the right to reclaim $344 million in cash collateral it has netted against its derivative positions.
8The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $137 million in the line item prepaid expenses and other current assets, $95 million in the line item other noncurrent assets and $12 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio.
December 31, 2021 Level 1 Level 2 Level 3
Other3
Netting
Adjustment
4
 Fair Value
Measurements
Assets:  
 
      
Equity securities with readily determinable values1
$ 2,372  $ 230  $ 17  $ 104  $ —  $ 2,723 
Debt securities1
—  1,556  33  —  —  1,589 
Derivatives2
69  588  —  —  (459)
6
 198 
8
Total assets $ 2,441  $ 2,374  $ 50  $ 104  $ (459) $ 4,510 
Liabilities:          
Contingent consideration liability $ —  $ —  $ 590 
5
 $ —  $ —  $ 590 
Derivatives2
—  96  —  —  (82)
7
 14 
8
Total liabilities $ —  $ 96  $ 590  $ —  $ (82) $ 604 
1Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities.
2Refer to Note 6 for additional information related to the composition of our derivatives portfolio.
3Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4.
4Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 6.
5Represents the fair value of future milestone payments related to our acquisition of fairlife in 2020, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling.
6The Company is obligated to return $331 million in cash collateral it has netted against its derivative positions.
7The Company does not have the right to reclaim any cash collateral it has netted against its derivative positions.
8The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $198 million in the line item other noncurrent assets and $14 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio.