Annual report pursuant to Section 13 and 15(d)

Financial Instruments (Tables)

v3.3.1.900
Financial Instruments (Tables)
12 Months Ended
Dec. 26, 2015
Investments, Debt and Equity Securities [Abstract]  
Cash, Cash Equivalents and Marketable Securities
Cash and financial instruments measured and recorded at fair value on a recurring basis as of December 26, 2015 and December 27, 2014 are summarized below:
 
 
Total Fair
Value
 
Cash and
Cash
Equivalents
 
 
(In millions)
December 26, 2015
 
 
 
 
Cash
 
$
409

 
$
409

Level 2(2) (3)
 
 
 
 
Commercial paper
 
376

 
376

Total level 2
 
376

 
376

Total
 
$
785

 
$
785

 
 
Total Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
(In millions)
December 27, 2014
 
 
 
 
 
 
Cash
 
$
391

 
$
391

 
$

Level 1(1) (2)
 
 
 
 
 
 
Money market funds
 
4

 
4

 

Total level 1
 
4

 
4

 

Level 2(2) (3)
 
 
 
 
 
 
Commercial paper
 
618

 
410

 
208

Corporate bonds
 
27

 

 
27

Total level 2
 
645

 
410

 
235

Total
 
$
1,040

 
$
805

 
$
235


(1) 
The Company’s Level 1 assets are valued using quoted prices for identical instruments in active markets.
(2) 
The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during 2015 and 2014.
(3) 
The Company’s Level 2 short-term investments are valued using broker reports that utilize quoted market prices for identical or comparable instruments. Brokers gather observable inputs for all of the Company’s fixed income securities from a variety of industry data providers and other third-party sources.
Financial Instruments Not Recorded at Fair Value on a Recurring Basis
The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows:
 
December 26, 2015
 
December 27, 2014
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(In millions)
Short-term debt (excluding capital leases)
$
230

 
$
230

 
$
172

 
$
173

Long-term debt (excluding capital leases)
$
2,025

 
$
1,372

 
$
2,025

 
$
1,858

Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations
The following table shows the amount of gain (loss) included in accumulated other comprehensive income (loss), the amount of gain (loss) reclassified from accumulated other comprehensive income (loss) and included in earnings related to the foreign currency forward contracts designated as cash flow hedges and the amount of gain (loss) included in other income (expense), net, related to contracts not designated as hedging instruments, which was allocated in the consolidated statements of operations:
 
2015
 
2014
 
(In millions)
Foreign Currency Forward Contracts - gains (losses)
 
 
 
Contracts designated as cash flow hedging instruments
 
 
 
Other comprehensive income (loss)
$
(1
)
 
$
(3
)
Cost of sales
(4
)
 

Research and development
(10
)
 
(3
)
Marketing, general and administrative
(7
)
 
(3
)
Contracts not designated as hedging instruments
 
 
 
Other income (expense), net
$
(3
)
 
$
(3
)
Schedule of Fair Value Amounts of Foreign Currency Forward Contracts in Balance Sheet
The following table shows the fair value amounts included in Other current assets should the foreign currency forward contracts be in a gain position or included in Other current liabilities should these contracts be in a loss position. As of December 26, 2015, the Company’s outstanding contracts were in a net loss position of $6 million. These amounts were recorded in the Company’s consolidated balance sheets as follows:
 
 
December 26,
2015
 
December 27,
2014
 
 
(In millions)
Foreign Currency Forward Contracts - gains (losses)
 
 
 
 
Contracts designated as cash flow hedging instruments
 
$
(6
)
 
$
(6
)
Contracts not designated as hedging instruments
 
$

 
$
(1
)
Schedule of Fair Value Amounts of Fair Value Hedge Derivative Contracts in Balance Sheet
The following table shows the fair value amounts included in Other assets should the fair value hedge derivative contracts be in a gain position or included in Other long-term liabilities should these contracts be in a loss position. These amounts were recorded in the Company’s consolidated balance sheets as follows:
 
 
December 26,
2015
 
December 27,
2014
 
 
(In millions)
Interest Rate Swap Contracts - gains (losses)
 
 
 
 
Contracts designated as fair value hedging instruments
 
$
7

 
$
3