Annual report pursuant to Section 13 and 15(d)

Financial Instruments (Tables)

v3.10.0.1
Financial Instruments (Tables)
12 Months Ended
Dec. 29, 2018
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, which approximates amortized cost, as of December 29, 2018 and December 30, 2017 are summarized below:
 
Total Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
(In millions)
December 29, 2018
 
 
 
 
 
Cash
$
315

 
$
315

 
$

Level 1(1) (2)
 
 
 
 
 
Government money market funds
$
275

 
$
275

 
$

Total level 1
$
275

 
$
275

 
$

Level 2(1) (3)
 
 
 
 
 
Commercial paper
$
566

 
$
488

 
$
78

Total level 2
$
566

 
$
488

 
$
78

Total
$
1,156

 
$
1,078

 
$
78

 
Total Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
(In millions)
December 30, 2017
 
 
 
 
 
Cash
$
108

 
$
108

 
$

Level 1(1) (2)
 
 
 
 
 
Government money market funds
$
395

 
$
395

 
$

Total level 1
$
395

 
$
395

 
$

Level 2(1) (3)
 
 
 
 
 
Commercial paper
$
682

 
$
682

 
$

Total level 2
$
682

 
$
682

 
$

Total
$
1,185

 
$
1,185

 
$


(1) 
The Company did not have any transfers between Level 1 and Level 2 during 2018 and 2017.
(2) 
The Company’s Level 1 assets are valued using quoted prices for identical instruments in active markets.
(3) 
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 Company carries its financial instruments at fair value with the exception of its debt. Financial instruments that are not recorded at fair value are measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows:
 
December 29, 2018
 
December 30, 2017
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(In millions)
Short-term debt
$
136

 
$
136

 
$
70

 
$
70

Long-term debt, net(1)
$
1,114

 
$
2,428

 
$
1,324

 
$
2,103


(1)
Carrying amounts of long-term debt are net of unamortized debt issuance costs of $16 million and $19 million as of December 29, 2018 and December 30, 2017, respectively, and net of $262 million and $286 million unamortized debt discount associated with the 2.125% Notes as of December 29, 2018 and December 30, 2017, respectively.
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) (OCI) 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:
 
Consolidated Statements of Operations and
Statements of Comprehensive Income (Loss) Location
2018
 
2017
 
 
(In millions)
Foreign Currency Forward Contracts - gains (losses)
 
 
 
 
Contracts designated as cash flow hedging instruments
 
 
 
 
Other comprehensive income (loss)
 
$
(14
)
 
$
9

 
 
 
 
 
Gains (losses) reclassified from OCI into income
Research and development
(4
)
 
7

Gains (losses) reclassified from OCI into income
Cost of sales; Marketing, general and administrative
(1
)
 
1

Total Gains (losses) reclassified from OCI into income
 
(5
)
 
8

Contracts not designated as hedging instruments
 
 
 
 
Gains (losses) recognized in income
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. These amounts were recorded in the Company’s consolidated balance sheets as follows:
 
 
December 29,
2018
 
December 30,
2017
 
 
(In millions)
Foreign Currency Forward Contracts - gains (losses)
 
 
 
 
Contracts designated as cash flow hedging instruments
 
$
(7
)
 
$
7