Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments (Tables)

v3.19.3
Financial Instruments (Tables)
 9 Months Ended
Sep. 28, 2019
Investments, Debt and Equity Securities [Abstract]  
Cash, Cash Equivalents, and Marketable Securities
Cash and financial instruments measured and recorded at fair value as of September 28, 2019 and December 29, 2018 are summarized below:
 
Total Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
(In millions)
September 28, 2019
 
 
 
 
 
Cash
$
1,155

 
$
1,155

 
$
—

Level 1(1)
 
 
 
 
 
Government money market funds
$
1

 
$
1

 
$
—

Total level 1
$
1

 
$
1

 
$
—

Level 2(2)
 
 
 
 
 
Commercial paper
$
53

 
$
—

 
$
53

Total level 2
$
53

 
$
—

 
$
53

Total
$
1,209

 
$
1,156

 
$
53


 
Total Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
(In millions)
December 29, 2018
 
 
 
 
 
Cash
$
315

 
$
315

 
$
—

Level 1(1)
 
 
 
 
 
Government money market funds
$
275

 
$
275

 
$
—

Total level 1
$
275

 
$
275

 
$
—

Level 2(2)
 
 
 
 
 
Commercial paper
$
566

 
$
488

 
$
78

Total level 2
$
566

 
$
488

 
$
78

Total
$
1,156

 
$
1,078

 
$
78



(1) 
The Company’s Level 1 assets are valued using quoted prices for identical instruments in active markets.
(2) 
The Company’s Level 2 assets are valued using broker reports that utilize quoted prices for identical instruments in markets that are not active or comparable instruments in active markets. 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:
 
September 28, 2019
 
December 29, 2018
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(In millions)
Short-term debt, net
$
—

 
$
—

 
$
136

 
$
136

Long-term debt, net(1)
$
872

 
$
2,977

 
$
1,114

 
$
2,428


(1)
Carrying amounts of long-term debt are net of unamortized debt issuance costs of $11 million as of September 28, 2019 and $16 million as of December 29, 2018, and net of unamortized debt discount associated with the 2.125% Notes of $205 million as of September 28, 2019 and $262 million as of December 29, 2018.
Schedule of Derivative Instruments, Gains (Losses) in Statement of Operations
The following table shows the impact of losses resulting from cash flow hedges and foreign currency forward contracts not designated as accounting hedges on the respective condensed consolidated statement of operations line items:    
 
Three Months Ended
 
September 28,
2019
 
September 29,
2018
 
Research and development
 
Marketing, general and administrative
 
Other income (expense), net
 
Research and development
 
Marketing, general and administrative
 
Other income (expense), net
 
(In millions)
Amounts presented in the condensed consolidated statements of operations in which the effects of cash flow hedges were recorded
$
406

 
$
185

 
$
(36
)
 
$
363

 
$
148

 
$
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Forward Contracts - losses
 
 
 
 
 
 
 
 
 
 
 
Contracts designated as cash flow hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Losses reclassified from OCI into income
(1
)
 
(1
)
 
—

 
(4
)
 
(1
)
 
—

Contracts not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Losses recognized in income
—

 
—

 
(1
)
 
—

 
—

 
—

Total losses
$
(1
)
 
$
(1
)
 
$
(1
)
 
$
(4
)
 
$
(1
)
 
$
—



 
Nine Months Ended
 
September 28,
2019
 
September 29,
2018
 
Research and development
 
Marketing, general and administrative
 
Other income (expense), net
 
Research and development
 
Marketing, general and administrative
 
Other income (expense), net
 
(In millions)
Amounts presented in the condensed consolidated statements of operations in which the effects of cash flow hedges were recorded
$
1,152

 
$
544

 
$
(40
)
 
$
1,063

 
$
424

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Forward Contracts - losses
 
 
 
 
 
 
 
 
 
 
 
Contracts designated as cash flow hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Losses reclassified from OCI into income
(5
)
 
(1
)
 
—

 
—

 
—

 
—

Contracts not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Losses recognized in income
—

 
—

 
(2
)
 
—

 
—

 
(2
)
Total losses
$
(5
)
 
$
(1
)
 
$
(2
)
 
$
—

 
$
—

 
$
(2
)

Schedule of Fair Value Amounts of Foreign Currency Forward Contracts in Balance Sheet
The following table shows the fair value amounts of the Company's foreign currency derivative contracts depending on whether the foreign currency forward contracts are in a gain or loss position. These amounts were recorded in the Company’s condensed consolidated balance sheets in either Other current assets or Other current liabilities.
 
September 28,
2019
 
December 29,
2018
 
(In millions)
Foreign Currency Forward Contracts - gains (losses)
 
 
 
Contracts designated as cash flow hedging instruments - gains
$
1

 
$
1

Contracts designated as cash flow hedging instruments - losses
$
(7
)
 
$
(8
)