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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 27, 2015
Fair Value Disclosures [Abstract] |
Marketable Securities | The Company's cash, cash equivalents and current marketable securities as of September 27, 2015 comprised:
| September 27, 2015
(Dollars in Millions) | Carrying Amount |  | Unrealized Gain |  | Unrealized Loss |  | Estimated Fair Value |  | Cash & Cash Equivalents |  | Current Marketable Securities
Cash | $ | 1,976 |  |  | — |  |  | — |  |  | 1,976 |  |  | 1,976 |  |  |
U.S. Gov't Securities(1) | 15,694 |  |  | 5 |  |  | — |  |  | 15,699 |  |  | 1,700 |  |  | 13,994 |
Other Sovereign Securities(1) | 2,737 |  |  | — |  |  | — |  |  | 2,737 |  |  | 1,192 |  |  | 1,545 |
U.S. Reverse repurchase agreements(1) | 3,015 |  |  | — |  |  | — |  |  | 3,015 |  |  | 3,015 |  |  |
Other Reverse repurchase agreements(1) | 2,179 |  |  | — |  |  | — |  |  | 2,179 |  |  | 2,179 |  |  |
Corporate debt securities(1) | 4,237 |  |  | — |  |  | — |  |  | 4,237 |  |  | 1,378 |  |  | 2,859 |
Money market funds | 1,358 |  |  | — |  |  | — |  |  | 1,358 |  |  | 1,358 |  |  |
Time deposits(1) | 841 |  |  | — |  |  | — |  |  | 841 |  |  | 841 |  |  |
Subtotal | 32,037 |  |  | 5 |  |  | — |  |  | 32,042 |  |  | 13,639 |  |  | 18,398 |
Gov't Securities | 4,255 |  |  | 14 |  |  | (1 | ) |  | 4,268 |  |  | — |  |  | 4,268 |
Corporate debt securities | 1,002 |  |  | 2 |  |  | (3 | ) |  | 1,001 |  |  | — |  |  | 1,001 |
Subtotal Available for Sale(2) | $ | 5,257 |  |  | 16 |  |  | (4 | ) |  | 5,269 |  |  | — |  |  | 5,269 |
Total cash, cash equivalents and current marketable securities |  |  |  |  |  |  |  |  |  |  |  |  | 13,639 |  |  | 23,667 |
(1) Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings. (2) Available for sale securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income.
Summary of designated derivatives | The following table is a summary of the activity related to derivatives designated as cash flow hedges for the fiscal third quarters in 2015 and 2014:
|  | Gain/(Loss) Recognized In Accumulated OCI(1) |  | Gain/(Loss) Reclassified From Accumulated OCI Into Income(1) |  | Gain/(Loss) Recognized In Other Income/Expense(2)
(Dollars in Millions) |  | Fiscal Third Quarters Ended
Cash Flow Hedges By Income Statement Caption |  | September 27, 2015 |  | September 28, 2014 |  | September 27, 2015 |  | September 28, 2014 |  | September 27, 2015 |  | September 28, 2014
Sales to customers(3) |  | $ | 3 |  |  | (43 | ) |  | (24 | ) |  | (2 | ) |  | (3 | ) |  | — |
Cost of products sold(3) |  | 222 |  |  | (37 | ) |  | (34 | ) |  | 37 |  |  | 1 |  |  | (2 | )
Research and development expense(3) |  | (10 | ) |  | 25 |  |  | 7 |  |  | 8 |  |  | — |  |  | — |
Interest (income)/Interest expense, net(4) |  | (13 | ) |  | 11 |  |  | 1 |  |  | (6 | ) |  | — |  |  | — |
Other (income) expense, net(3) |  | (42 | ) |  | 58 |  |  | 12 |  |  | 12 |  |  | (1 | ) |  | — |
Total |  | $ | 160 |  |  | 14 |  |  | (38 | ) |  | 49 |  |  | (3 | ) |  | (2 | )
The following table is a summary of the activity related to derivatives designated as cash flow hedges for the first fiscal nine months in 2015 and 2014:
|  | Gain/(Loss) Recognized In Accumulated OCI(1) |  | Gain/(Loss) Reclassified From Accumulated OCI Into Income(1) |  | Gain/(Loss) Recognized In Other Income/Expense(2)
(Dollars in Millions) |  | Fiscal Nine Months Ended
Cash Flow Hedges By Income Statement Caption |  | September 27, 2015 |  | September 28, 2014 |  | September 27, 2015 |  | September 28, 2014 |  | September 27, 2015 |  | September 28, 2014
Sales to customers(3) |  | $ | (52 | ) |  | (73 | ) |  | (95 | ) |  | 6 |  |  | (5 | ) |  | 1 |
Cost of products sold(3) |  | 106 |  |  | (187 | ) |  | 82 |  |  | 196 |  |  | 15 |  |  | (4 | )
Research and development expense(3) |  | (13 | ) |  | 28 |  |  | (2 | ) |  | (5 | ) |  | — |  |  | (1 | )
Interest (income)/Interest expense, net(4) |  | (42 | ) |  | 21 |  |  | (2 | ) |  | (12 | ) |  | — |  |  | — |
Other (income) expense, net(3) |  | 27 |  |  | 72 |  |  | 54 |  |  | (9 | ) |  | — |  |  | — |
Total |  | $ | 26 |  |  | (139 | ) |  | 37 |  |  | 176 |  |  | 10 |  |  | (4 | )
All amounts shown in the table above are net of tax. (1) Effective portion (2) Ineffective portion (3) Forward foreign exchange contracts (4) Cross currency interest rate swaps
Financial assets and liabilities at fair value | The Company’s significant financial assets and liabilities measured at fair value as of September 27, 2015 and December 28, 2014 were as follows:
|  | September 27, 2015 |  |  |  | December 28, 2014
(Dollars in Millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Total(1)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts(7) |  | $ | — |  |  | 791 |  |  | — |  |  | 791 |  |  | 996 |
Interest rate contracts (2)(4)(7) |  | — |  |  | 51 |  |  | — |  |  | 51 |  |  | 31 |
Total |  | — |  |  | 842 |  |  | — |  |  | 842 |  |  | 1,027 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts(8) |  | — |  |  | 472 |  |  | — |  |  | 472 |  |  | 751 |
Interest rate contracts (3)(4) |  | — |  |  | 185 |  |  | — |  |  | 185 |  |  | 8 |
Total |  | — |  |  | 657 |  |  | — |  |  | 657 |  |  | 759 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts(7) |  | — |  |  | 56 |  |  | — |  |  | 56 |  |  | 29 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts(8) |  | — |  |  | 39 |  |  | — |  |  | 39 |  |  | 51 |
Available For Sale Other Investments: |  |  |  |  |  |  |  |  |  |
Equity investments(5) |  | 1,130 |  |  | — |  |  | — |  |  | 1,130 |  |  | 679 |
Debt securities(6) |  | $ | — |  |  | 5,269 |  |  | — |  |  | 5,269 |  |  | — |
(1) | 2014 assets and liabilities are all classified as Level 2 with the exception of equity investments of $679 million, which are classified as Level 1.
(2) | Includes $45 million and $29 million of non-current other assets for September 27, 2015 and December 28, 2014, respectively.
(3) | Includes $185 million and $8 million of non-current other liabilities for September 27, 2015 and December 28, 2014, respectively.
(4) | Includes cross currency interest rate swaps and interest rate swaps.
(5) | Classified as non-current other assets. The carrying amount of the equity investments were $531 million and $284 million as of September 27, 2015 and December 28, 2014, respectively. The unrealized gains were $648 million and $406 million as of September 27, 2015 and December 28, 2014, respectively. The unrealized losses were $49 million and $11 million as of September 27, 2015 and December 28, 2014, respectively.
(6) | Classified as current marketable securities.
(7) | Classified as other current assets.
(8) | Classified as accounts payable
Financial assets and liabilities not measured at fair value | Financial Instruments not measured at Fair Value: The following financial liabilities are held at carrying amount on the consolidated balance sheet as of September 27, 2015:
(Dollars in Millions) |  | Carrying Amount |  | Estimated Fair Value
Financial Liabilities |  |  |  |
Current Debt |  | $ | 5,677 |  |  | 5,677 |
Non-Current Debt |  |  |  |
3 month LIBOR+0.07% FRN due 2016 |  | 800 |  |  | 800 |
0.70% Notes due 2016 |  | 399 |  |  | 400 |
5.55% Debentures due 2017 |  | 1,000 |  |  | 1,084 |
1.125% Notes due 2017 |  | 706 |  |  | 710 |
5.15% Debentures due 2018 |  | 899 |  |  | 995 |
1.65% Notes due 2018 |  | 609 |  |  | 616 |
4.75% Notes due 2019 (1B Euro 1.1267) |  | 1,123 |  |  | 1,322 |
1.875% Notes due 2019 |  | 510 |  |  | 517 |
3% Zero Coupon Convertible Subordinated Debentures due in 2020 |  | 140 |  |  | 181 |
2.95% Debentures due 2020 |  | 545 |  |  | 585 |
3.55% Notes due 2021 |  | 448 |  |  | 487 |
2.45% Notes due 2021 |  | 350 |  |  | 357 |
6.73% Debentures due 2023 |  | 250 |  |  | 326 |
3.375% Notes due 2023 |  | 811 |  |  | 856 |
5.50% Notes due 2024 (500 MM GBP 1.5215) |  | 756 |  |  | 940 |
6.95% Notes due 2029 |  | 297 |  |  | 426 |
4.95% Debentures due 2033 |  | 500 |  |  | 571 |
4.375% Notes due 2033 |  | 864 |  |  | 932 |
5.95% Notes due 2037 |  | 996 |  |  | 1,275 |
5.85% Debentures due 2038 |  | 700 |  |  | 898 |
4.50% Debentures due 2040 |  | 541 |  |  | 585 |
4.85% Notes due 2041 |  | 298 |  |  | 345 |
4.50% Notes due 2043 |  | 499 |  |  | 539 |
Other |  | 32 |  |  | 32 |
Total Non-Current Debt |  | $ | 14,073 |  |  | 15,779 |

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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 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13476-108611 Reference 2: 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=36462937&loc=d3e19207-110258 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=49121117&loc=d3e13467-108611 Reference 4: 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 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 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
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