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Fair Value Measurements (Tables) | 3 Months Ended | 9 Months Ended
--- | --- | ---
Sep. 29, 2013 | Sep. 29, 2013
Fair Value Disclosures [Abstract] |  |
Summary of designated derivatives | The following table is a summary of the activity related to derivatives designated as hedges for the fiscal third quarters in 2013 and 2012:
|  | Gain/(Loss) Recognized in Accumulated OCI(1) |  | Gain/(Loss) Reclassified from Accumulated OCI into Income(1) |  | Gain/(Loss) Recognized in Other Income/Expense(2)
|  | Fiscal Third Quarters Ended
Cash Flow Hedges by Income Statement Caption |  | September 29, 2013 |  | September 30, 2012 |  | September 29, 2013 |  | September 30, 2012 |  | September 29, 2013 |  | September 30, 2012
(Dollars in Millions) |  |  |  |  |  |  |  |  |  |  |  |
Sales to customers(3) |  | $ | 25 |  |  | 30 |  |  | 17 |  |  | (12 | ) |  | — |  |  | (1 | )
Cost of products sold(3) |  | 42 |  |  | (61 | ) |  | 51 |  |  | (19 | ) |  | — |  |  | (1 | )
Research and development expense(3) |  | (20 | ) |  | 22 |  |  | (14 | ) |  | 43 |  |  | — |  |  | — |
Interest (income)/Interest expense, net(4) |  | 7 |  |  | 28 |  |  | (2 | ) |  | (2 | ) |  | — |  |  | — |
Other (income)expense, net(3) |  | (13 | ) |  | (24 | ) |  | (8 | ) |  | 19 |  |  | — |  |  | 1 |
Total |  | $ | 41 |  |  | (5 | ) |  | 44 |  |  | 29 |  |  | — |  |  | (1 | )
| The following table is a summary of the activity related to derivatives designated as hedges for the fiscal nine months in 2013 and 2012:
|  | Gain/(Loss) Recognized in Accumulated OCI(1) |  | Gain/(Loss) Reclassified from Accumulated OCI into Income(1) |  | Gain/(Loss) Recognized in Other Income/Expense(2)
|  | Fiscal Nine Months Ended
Cash Flow Hedges by Income Statement Caption |  | September 29, 2013 |  | September 30, 2012 |  | September 29, 2013 |  | September 30, 2012 |  | September 29, 2013 |  | September 30, 2012
(Dollars in Millions) |  |  |  |  |  |  |  |  |  |  |  |
Sales to customers(3) |  | $ | 22 |  |  | 16 |  |  | 24 |  |  | (42 | ) |  | — |  |  | (1 | )
Cost of products sold(3) |  | 220 |  |  | (100 | ) |  | 72 |  |  | (53 | ) |  | 4 |  |  | (1 | )
Research and development expense(3) |  | (27 | ) |  | 33 |  |  | (31 | ) |  | 56 |  |  | (3 | ) |  | — |
Interest (income)/Interest expense, net(4) |  | 15 |  |  | (14 | ) |  | (6 | ) |  | (11 | ) |  | — |  |  | — |
Other (income)expense, net(3) |  | (6 | ) |  | (25 | ) |  | (6 | ) |  | 27 |  |  | (1 | ) |  | — |
Total |  | $ | 224 |  |  | (90 | ) |  | 53 |  |  | (23 | ) |  | — |  |  | (2 | )
Financial assets and liabilities at fair value |  | The Company’s significant financial assets and liabilities measured at fair value as of September 29, 2013 and December 30, 2012 were as follows:
|  | September 29, 2013 |  |  |  | December 30, 2012
(Dollars in Millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Total(2)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | — |  |  | 482 |  |  | — |  |  | 482 |  |  | 423 |
Cross currency interest rate swaps(3) |  | — |  |  | 127 |  |  | — |  |  | 127 |  |  | 98 |
Total |  | — |  |  | 609 |  |  | — |  |  | 609 |  |  | 521 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | — |  |  | 181 |  |  | — |  |  | 181 |  |  | 252 |
Cross currency interest rate swaps(4) |  | — |  |  | 10 |  |  | — |  |  | 10 |  |  | 10 |
Total |  | — |  |  | 191 |  |  | — |  |  | 191 |  |  | 262 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | — |  |  | 37 |  |  | — |  |  | 37 |  |  | 75 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | — |  |  | 15 |  |  | — |  |  | 15 |  |  | 23 |
Other Investments(1) |  | $ | 405 |  |  | — |  |  | — |  |  | 405 |  |  | 1,247 |
(1) | Classified as non-current other assets. The change in the fair value from December 30, 2012 was primarily due to the sale of Elan American Depositary Shares.
(2) | As of December 30, 2012, these assets and liabilities are classified as Level 2 with the exception of Other Investments of $1,247 million which are classified as Level 1.
(3) | Includes $127 million and $96 million of non-current assets for September 29, 2013 and December 30, 2012, respectively.
(4) | Includes $5 million and $4 million of non-current liabilities for September 29, 2013 and December 30, 2012, respectively.
Financial assets and liabilities not measured at fair value |  | Financial Instruments not measured at Fair Value: The following financial assets and liabilities are held at carrying amount on the consolidated balance sheet as of September 29, 2013:
(Dollars in Millions) |  | Carrying Amount |  |  | Estimated Fair Value |
Financial Assets |  |  |  |
Current Investments |  |  |  |
Cash |  | $ | 2,701 |  |  | 2,701 |
Government securities and obligations |  | 19,884 |  |  | 19,884 |
Corporate debt securities |  | 611 |  |  | 611 |
Money market funds |  | 1,399 |  |  | 1,399 |
Time deposits |  | 633 |  |  | 633 |
Total cash, cash equivalents and current marketable securities |  | $ | 25,228 |  |  | 25,228 |
Fair value of government securities and obligations and corporate debt securities was estimated using quoted broker prices and significant other observable inputs.
Financial Liabilities |  |  |  |
Current Debt |  | $ | 5,359 |  |  | 5,359 |
Non-Current Debt |  |  |  |
2.15% Notes due 2016 |  | 898 |  |  | 932 |
5.55% Debentures due 2017 |  | 1,000 |  |  | 1,159 |
5.15% Debentures due 2018 |  | 898 |  |  | 1,041 |
4.75% Notes due 2019 (1B Euro 1.3503) |  | 1,345 |  |  | 1,605 |
3% Zero Coupon Convertible Subordinated Debentures due in 2020 |  | 178 |  |  | 260 |
2.95% Debentures due 2020 |  | 542 |  |  | 564 |
3.55% Notes due 2021 |  | 446 |  |  | 470 |
6.73% Debentures due 2023 |  | 250 |  |  | 323 |
5.50% Notes due 2024 (500 GBP 1.6042) |  | 797 |  |  | 965 |
6.95% Notes due 2029 |  | 296 |  |  | 404 |
4.95% Debentures due 2033 |  | 500 |  |  | 561 |
5.95% Notes due 2037 |  | 995 |  |  | 1,226 |
5.85% Debentures due 2038 |  | 700 |  |  | 832 |
4.50% Debentures due 2040 |  | 539 |  |  | 556 |
4.85% Notes due 2041 |  | 298 |  |  | 322 |
Other |  | 66 |  |  | 66 |
Total Non-Current Debt |  | $ | 9,748 |  |  | 11,286 |
The weighted average effective interest rate on non-current debt is 5.12%. Fair value of the non-current debt was estimated using market prices, which were corroborated by quoted broker prices and significant other observable inputs.

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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=25499696&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13476-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 + 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 + Details
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