XML 28 R16.htm IDEA: XBRL DOCUMENT
v3.24.3

Financial Instruments | 9 Months Ended
--- | ---
Sep. 28, 2024
Investments, Debt and Equity Securities [Abstract] |
Fair Value Disclosures | Financial Instruments Fair Value Measurements The Company’s financial instruments are measured and recorded at fair value on a recurring basis, except for non-marketable equity investments in privately-held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Financial Instruments Recorded at Fair Value on a Recurring Basis
| September 28, 2024 |  | December 30, 2023
(In millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Total
Cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 1,879 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,879 |  |  | $ | 969 |  |  | $ | — |  |  | $ | 969 |
Corporate debt securities | — |  |  | 642 |  |  | — |  |  | 642 |  |  | — |  |  | 753 |  |  | 753 |
U.S. government and agency securities | 330 |  |  | — |  |  | — |  |  | 330 |  |  | 1,252 |  |  | — |  |  | 1,252 |
Non-U.S. government and agency securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 135 |  |  | 135 |
Time deposits and certificates of deposits | — |  |  | 132 |  |  | — |  |  | 132 |  |  | — |  |  | 205 |  |  | 205 |
Short-term investments |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | — |  |  | 271 |  |  | — |  |  | 271 |  |  | — |  |  | 506 |  |  | 506 |
Time deposits and certificates of deposits | — |  |  | 10 |  |  | — |  |  | 10 |  |  | — |  |  | 9 |  |  | 9 |
Asset-backed and mortgage-backed securities | — |  |  | 30 |  |  | — |  |  | 30 |  |  | — |  |  | 34 |  |  | 34 |
U.S. government and agency securities | 275 |  |  | 40 |  |  | — |  |  | 315 |  |  | 1,209 |  |  | 28 |  |  | 1,237 |
Non-U.S. government and agency securities | — |  |  | 21 |  |  | — |  |  | 21 |  |  | — |  |  | 54 |  |  | 54 |
Other non-current assets |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred compensation plan and other investments | 162 |  |  | — |  |  | 25 |  |  | 187 |  |  | 133 |  |  | — |  |  | 133 |
Total assets measured at fair value | $ | 2,646 |  |  | $ | 1,146 |  |  | $ | 25 |  |  | $ | 3,817 |  |  | $ | 3,563 |  |  | $ | 1,724 |  |  | $ | 5,287 |
Deferred compensation plan and other investments are primarily mutual fund investments held in a Rabbi trust established to maintain the Company’s executive deferred compensation plan. The following is a summary of cash equivalents and short-term investments:
| September 28, 2024 |  | December 30, 2023
| Cost/ Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Cost/ Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (in millions) |  | (in millions)
Asset-backed and mortgage-backed securities | $ | 32 |  |  | $ | — |  |  | $ | (2) |  |  | $ | 30 |  |  | $ | 35 |  |  | $ | — |  |  | $ | (2) |  |  | $ | 33 |
Corporate debt securities | 912 |  |  | 1 |  |  | — |  |  | 913 |  |  | 1,259 |  |  | — |  |  | — |  |  | 1,259 |
Money market funds | 1,879 |  |  | — |  |  | — |  |  | 1,879 |  |  | 969 |  |  | — |  |  | — |  |  | 969 |
Time deposits and certificates of deposits | 142 |  |  | — |  |  | — |  |  | 142 |  |  | 214 |  |  | — |  |  | — |  |  | 214 |
U.S. government and agency securities | 643 |  |  | 2 |  |  | — |  |  | 645 |  |  | 2,487 |  |  | 3 |  |  | — |  |  | 2,490 |
Non-U.S. government and agency securities | 21 |  |  | — |  |  | — |  |  | 21 |  |  | 189 |  |  | — |  |  | — |  |  | 189 |
| $ | 3,629 |  |  | $ | 3 |  |  | $ | (2) |  |  | $ | 3,630 |  |  | $ | 5,153 |  |  | $ | 3 |  |  | $ | (2) |  |  | $ | 5,154 |
As of September 28, 2024 and December 30, 2023, the Company did not have material available-for-sale debt securities which had been in a continuous unrealized loss position of more than twelve months. The contractual maturities of cash equivalents and investments classified as available-for-sale are as follows:
| September 28, 2024 |  | December 30, 2023
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
| (In millions) |  | (In millions)
Due within 1 year | $ | 1,472 |  |  | $ | 1,473 |  |  | $ | 3,792 |  |  | $ | 3,792 |
Due in 1 year through 5 years | 250 |  |  | 252 |  |  | 361 |  |  | 364 |
Due in 5 years and later | 28 |  |  | 26 |  |  | 32 |  |  | 30 |
| $ | 1,750 |  |  | $ | 1,751 |  |  | $ | 4,185 |  |  | $ | 4,186 |
Financial Instruments Not Recorded at Fair Value The Company carries its financial instruments at fair value except for its debt. The carrying amounts and estimated fair values of the Company’s debt are as follows:
| September 28, 2024 |  | December 30, 2023
| Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
| (In millions) |  | (In millions)
Current portion of long-term debt, net | $ | — |  |  | $ | — |  |  | $ | 751 |  |  | $ | 741 |
Long-term debt, net of current portion | $ | 1,720 |  |  | $ | 1,644 |  |  | $ | 1,717 |  |  | $ | 1,630 |
The estimated fair value of the Company’s long-term debt is based on Level 2 inputs of quoted prices for the Company’s debt and comparable instruments in inactive markets. The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing terms. Financial Instruments Measured at Fair Value on a Non-Recurring Basis The Company’s investments in non-marketable securities in privately-held companies are recorded using a measurement alternative that adjusts the securities to fair value when the Company recognizes an observable price adjustment or an impairment. As of September 28, 2024 and December 30, 2023, the Company had non-marketable securities in privately-held companies of $257 million and $155 million, respectively, that are recorded under Other non-current assets in the balance sheet. Impairment losses or observable price adjustments were not material during the three and nine months ended September 28, 2024 and September 30, 2023. Hedging Transactions and Derivative Financial Instruments Foreign Currency Forward Contracts Designated as Accounting Hedges The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 24 months and are designated as accounting hedges. As of September 28, 2024 and December 30, 2023, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $2.2 billion and $2.4 billion, respectively. The fair value of these contracts, recorded as an asset, was $19 million and $6 million as of September 28, 2024 and December 30, 2023, respectively. Foreign Currency Forward Contracts Not Designated as Accounting Hedges The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months and are not designated as accounting hedges. As of September 28, 2024 and December 30, 2023, the notional value of these outstanding contracts was $573 million and $568 million, respectively. The fair value of these contracts was not material as of September 28, 2024 and December 30, 2023.

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration