Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments (Tables)

v3.5.0.2
Financial Instruments (Tables)
 9 Months Ended
Sep. 24, 2016
Investments, Debt and Equity Securities [Abstract]  
Cash and Cash Equivalents
Cash and financial instruments measured and recorded at fair value on a recurring basis as of September 24, 2016 and December 26, 2015 are summarized below:
 
September 24, 2016
 
December 26, 2015
 
(In millions)
Cash and cash equivalents
 
 
 
Cash
$
306

 
$
409

Level 2(1) (2)
 
 
 
Commercial paper
952

 
376

Total level 2
952

 
376

Total
$
1,258

 
$
785



(1) 
The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the quarter and nine months ended September 24, 2016 or the year ended December 26, 2015.
(2) 
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:
 
September 24, 2016
 
December 26, 2015
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(In millions)
Short-term debt
$
—

 
$
—

 
$
230

 
$
230

Long-term debt(1)
$
1,630

 
$
1,990

 
$
2,000

 
$
1,372



(1)
Carrying amounts of long-term debt are net of unamortized debt issuance costs of $26 million as of September 24, 2016 and $25 million as of December 26, 2015, based on the adoption of ASU 2015-03 and net of $273 million unamortized debt discount associated with the 2.125% Notes as of September 24, 2016.
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 condensed consolidated statements of operations:
 
Three Months Ended
 
Nine Months Ended
 
September 24,
2016
 
September 26,
2015
 
September 24,
2016
 
September 26,
2015
 
(In millions)
Foreign Currency Forward Contracts - gains (losses)
 
 
 
 
 
 
 
Contracts designated as cash flow hedging instruments
 
 
 
 
 
 
 
Other comprehensive income (loss)
$
(1
)
 
$
(7
)
 
$
7

 
$
(7
)
Cost of sales
—

 
(1
)
 
—

 
(2
)
Research and development
1

 
(3
)
 
—

 
(7
)
Marketing, general and administrative
—

 
(2
)
 
—

 
(5
)
Contracts not designated as hedging instruments
 
 
 
 
 
 
 
Other income (expense), net
$
—

 
$
(2
)
 
$
2

 
$
(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. These amounts were recorded in the Company's condensed consolidated balance sheets as follows:
 
September 24,
2016
 
December 26,
2015
 
(In millions)
Foreign Currency Forward Contracts - gains (losses)
 
 
 
Contracts designated as cash flow hedging instruments
$
1

 
$
(6
)
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 condensed consolidated balance sheets as follows:
 
 
September 24,
2016
 
December 26,
2015
 
 
(In millions)
Interest Rate Swap Contracts - gains (losses)
 
 
 
 
Contracts designated as fair value hedging instruments
 
$
2

 
$
7