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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 29, 2019
Fair Value Disclosures [Abstract] |
Summary of Derivative Activity | The following table is a summary of the activity related to derivatives and hedges for the fiscal years ended December 29, 2019 and December 30, 2018, net of tax:
| December 29, 2019 | December 30, 2018
(Dollars in Millions) | Sales | Cost of Products Sold | R&D Expense | Interest (Income) Expense | Other (Income) Expense | Sales | Cost of Products Sold | R&D Expense | Interest (Income) Expense | Other (Income) Expense
The effects of fair value, net investment and cash flow hedging: |  |  |  |  |  |  |  |  |  |
Gain (Loss) on net investment hedging relationship: |  |  |  |  |  |  |  |  |  |
Cross currency interest rate swaps contracts: |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | — |  | — |  | — |  | 159 |  | — |  | — |  | — |  | — |  | 56 |  | — |
Amount of gain or (loss) recognized in AOCI | — |  | — |  | — |  | 159 |  | — |  | — |  | — |  | — |  | 56 |  | — |
Gain (Loss) on cash flow hedging relationship: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts: |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from AOCI into income | (54 | ) | (321 | ) | (105 | ) | — |  | 22 |  | 47 |  | 200 |  | (220 | ) | — |  | (24 | )
Amount of gain or (loss) recognized in AOCI | (20 | ) | (606 | ) | (94 | ) | — |  | 39 |  | (32 | ) | (17 | ) | (193 | ) | — |  | (4 | )
Cross currency interest rate swaps contracts: |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from AOCI into income | — |  | — |  | — |  | 292 |  | — |  | — |  | — |  | — |  | 133 |  | — |
Amount of gain or (loss) recognized in AOCI | $ | — |  | — |  | — |  | 415 |  | — |  | — |  | — |  | — |  | 117 |  | — |
Schedule of Derivatives Recorded in Consolidated Balance Sheets | For the fiscal years ended December 29, 2019 and December 30, 2018, the following amounts were recorded on the Consolidated Balance Sheet
Line item in the Consolidated Balance Sheet in which the hedged item is included |  | Carrying Amount of the Hedged Liability |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
(Dollars in Millions) |  | December 29, 2019 |  | December 30, 2018 |  | December 29, 2019 |  | December 30, 2018
Current Portion of Long-term Debt |  | $ | — |  |  | 494 |  |  | — |  |  | 5 |
Schedule of Effect of Derivatives not Designated as Hedging Instruments |
The following table is the effect of derivatives not designated as hedging instrument for the fiscal years ended December 29, 2019 and December 30, 2018:
(Dollars in Millions) |  | Location of Gain /(Loss) Recognized in Income on Derivative |  | Gain/(Loss) Recognized In Income on Derivative
Derivatives Not Designated as Hedging Instruments |  |  |  | December 29, 2019 |  | December 30, 2018
Foreign Exchange Contracts |  | Other (income) expense |  | (144 | ) |  | (68 | )
Schedule of Effect of Net Investment Hedges |
The following table is the effect of net investment hedges for the fiscal years ended December 29, 2019 and December 30, 2018:
|  | Gain/(Loss) Recognized In Accumulated OCI |  | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income |  | Gain/(Loss) Reclassified From Accumulated OCI Into Income
(Dollars in Millions) |  | December 29, 2019 |  | December 30, 2018 |  |  |  | December 29, 2019 |  | December 30, 2018
Debt |  | $ | 121 |  |  | 218 |  |  | Interest (income) expense |  | — |  |  | — |
Cross Currency interest rate swaps |  | $ | 488 |  |  | 150 |  |  | Interest (income) expense |  | — |  |  | — |
Summary of Activity Related to Equity Investments | The following table is a summary of the activity related to equity investments for the fiscal years ended December 29, 2019 and December 30, 2018:
|  | December 30, 2018 |  |  |  |  |  | December 29, 2019 |  |
(Dollars in Millions) |  | Carrying Value |  | Changes in Fair Value Reflected in Net Income (1) |  | Sales/ Purchases/Other(2) |  | Carrying Value |  | Non Current Other Assets
Equity Investments with readily determinable value |  | $ | 511 |  |  | 533 |  |  | 104 |  |  | 1,148 |  |  | 1,148 |
Equity Investments without readily determinable value |  | $ | 681 |  |  | (38 | ) |  | 69 |  |  | 712 |  |  | 712 |
|  | December 31, 2017 |  |  |  |  |  |  | December 30, 2018 |  |  |
(Dollars in Millions) |  | Carrying Value |  | Changes in Fair Value Reflected in Net Income (1) |  | Sales/ Purchases/Other(2) |  | Carrying Value |  | Non Current Other Assets
Equity Investments with readily determinable value |  | $ | 751 |  |  | (247 | ) |  | 7 |  |  | 511 |  |  | 511 |
Equity Investments without readily determinable value |  | $ | 510 |  |  | 13 |  |  | 158 |  |  | 681 |  |  | 681 |
(1) Recorded in Other Income/Expense (2) Other includes impact of currency
Financial Assets and Liabilities at Fair Value | The Company’s significant financial assets and liabilities measured at fair value as of the fiscal year ended December 29, 2019 and December 30, 2018 were as follows:
|  | 2019 |  | 2018
(Dollars in Millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Total (1)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | $ | — |  |  | 209 |  |  | — |  |  | 209 |  |  | 501 |
Interest rate contracts (2)(4) |  | — |  |  | 693 |  |  | — |  |  | 693 |  |  | 161 |
Total |  | — |  |  | 902 |  |  | — |  |  | 902 |  |  | 662 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | — |  |  | 426 |  |  | — |  |  | 426 |  |  | 548 |
Interest rate contracts (3)(4) |  | — |  |  | 193 |  |  | — |  |  | 193 |  |  | 292 |
Total |  | — |  |  | 619 |  |  | — |  |  | 619 |  |  | 840 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | — |  |  | 23 |  |  | — |  |  | 23 |  |  | 32 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | — |  |  | 33 |  |  | — |  |  | 33 |  |  | 32 |
Available For Sale Other Investments: |  |  |  |  |  |  |  |  |  |
Equity investments(5) |  | 1,148 |  |  | — |  |  | — |  |  | 1,148 |  |  | 511 |
Debt securities(6) |  | $ | — |  |  | 4,368 |  |  | — |  |  | 4,368 |  |  | 9,734 |
Other Liabilities |  |  |  |  |  |  |  |  |  |
Contingent Consideration(7) |  |  |  |  |  | 1,715 |  |  | 1,715 |  |  | 397 |
Gross to Net Derivative Reconciliation |  | 2019 |  | 2018
(Dollars in Millions) |  |  |  |
Total Gross Assets |  | $ | 925 |  |  | 694 |
Credit Support Agreement (CSA) |  | (841 | ) |  | (423 | )
Total Net Asset |  | 84 |  |  | 271 |
Total Gross Liabilities |  | 652 |  |  | 872 |
Credit Support Agreement (CSA) |  | (586 | ) |  | (605 | )
Total Net Liabilities |  | $ | 66 |  |  | 267 |
Summarized information about changes in liabilities for contingent consideration is as follows:
|  | 2019 | 2018 | 2017
(Dollars in Millions) |  |  |  |
Beginning Balance |  | 397 |  | 600 |  | 378 |
Changes in estimated fair value (8) |  | 151 |  | (156 | ) | 87 |
Additions |  | 1,246 |  | 125 |  | 160 |
Payments |  | (79 | ) | (172 | ) | (25 | )
Ending Balance |  | 1,715 |  | 397 |  | 600 |
(1) | 2018 assets and liabilities are all classified as Level 2 with the exception of equity investments of $511 million, which are classified as Level 1 and contingent consideration of $397 million, classified as Level 3.
(2) | Includes $1 million and $6 million of non-current assets for the fiscal years ending December 29, 2019 and December 30, 2018, respectively.
(3) | Includes $3 million of non-current liabilities for the fiscal years ending December 30, 2018.
(4) | Includes cross currency interest rate swaps and interest rate swaps.
(5) | Classified as non-current other assets.
(6) | Classified as cash equivalents and current marketable securities.
(7) | Includes $1,631 million (primarily related to Auris Health), $397 million and $600 million, classified as non-current other liabilities as of December 29, 2019, December 30, 2018 and December 31, 2017 respectively. Includes $84 million classified as current liabilities as of December 29, 2019.
(8) | Amounts are recorded primarily in Research and Development expense.

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