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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2017
Fair Value Disclosures [Abstract] |
Summary of Designated Derivatives | The following table is a summary of the activity related to derivatives designated as cash flow hedges for the fiscal years ended December 31, 2017 and January 1, 2017:
(Dollars in Millions) |  | Gain/(Loss) Recognized In Accumulated OCI(1) |  | Gain/(Loss) Reclassified From Accumulated OCI Into Income(1) |  | Gain/(Loss) Recognized In Other Income/Expense(2)
Cash Flow Hedges by Income Statement Caption |  | 2017 |  | 2016 |  | 2017 |  | 2016 |  | 2017 |  | 2016
Sales to customers (3) |  | $ | 49 |  |  | (65 | ) |  | (31 | ) |  | (47 | ) |  | (1 | ) |  | (1 | )
Cost of products sold (3) |  | 96 |  |  | (212 | ) |  | (159 | ) |  | (3 | ) |  | (10 | ) |  | (15 | )
Research and development expense (3) |  | (199 | ) |  | (76 | ) |  | (165 | ) |  | (90 | ) |  | 5 |  |  | — |
Interest (income)/Interest expense, net (4) |  | 110 |  |  | 66 |  |  | 83 |  |  | 37 |  |  | — |  |  | — |
Other (income) expense, net (3) (5) |  | (60 | ) |  | (72 | ) |  | (87 | ) |  | (7 | ) |  | — |  |  | 2 |
Total |  | $ | (4 | ) |  | (359 | ) |  | (359 | ) |  | (110 | ) |  | (6 | ) |  | (14 | )
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
(5) | Includes equity collar contracts
Financial Assets and Liabilities at Fair Value | The Company’s significant financial assets and liabilities measured at fair value as of December 31, 2017 and January 1, 2017 were as follows:
|  | 2017 |  | 2016
(Dollars in Millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Total (1)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts (7) |  | $ | — |  |  | 342 |  |  | — |  |  | 342 |  |  | 747 |
Interest rate contracts (2)(4) (7) |  | — |  |  | 7 |  |  | — |  |  | 7 |  |  | 31 |
Total |  | — |  |  | 349 |  |  | — |  |  | 349 |  |  | 778 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts (7) |  | — |  |  | 314 |  |  | — |  |  | 314 |  |  | 723 |
Interest rate contracts (3)(4) (7) |  | — |  |  | 15 |  |  | — |  |  | 15 |  |  | 382 |
Equity collar contracts |  | — |  |  | — |  |  | — |  |  | — |  |  | 57 |
Total |  | — |  |  | 329 |  |  | — |  |  | 329 |  |  | 1,162 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts (7) |  | — |  |  | 38 |  |  | — |  |  | 38 |  |  | 34 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts (7) |  | — |  |  | 38 |  |  | — |  |  | 38 |  |  | 57 |
Available For Sale Other Investments: |  |  |  |  |  |  |  |  |  |
Equity investments(5) |  | 751 |  |  | — |  |  | — |  |  | 751 |  |  | 1,209 |
Debt securities(6) |  | $ | — |  |  | 5,310 |  |  | — |  |  | 5,310 |  |  | 12,087 |
(1) | 2016 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,209 million, which are classified as Level 1.
(2) | Includes $7 million and $23 million of non-current assets for the fiscal years ending December 31, 2017 and January 1, 2017, respectively.
(3) | Includes $9 million and $382 million of non-current liabilities for the fiscal years ending December 31, 2017 and January 1, 2017, 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 $394 million and $520 million as of December 31, 2017 and January 1, 2017, respectively. The unrealized gains were $367 million and $757 million as of December 31, 2017 and January 1, 2017, respectively. The unrealized losses were $10 million and $68 million as of December 31, 2017 and January 1, 2017, respectively.
(6) | Classified as cash equivalents and current marketable securities.
(7) | Includes collateral exchanged on the credit support agreements on derivatives.

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