Financial Instruments

9 Months Ended

Sep. 28, 2012

Financial Instruments

14. Financial Instruments

At September 28, 2012 and December 31, 2011, the Company’s financial instruments consisted primarily of cash and cash equivalents, billed receivables, trade accounts payable, long-term debt (i.e., Senior Notes, Senior Subordinated Notes and CODES) and foreign currency forward contracts. The carrying amounts of cash and cash equivalents, billed receivables and trade accounts payable are representative of their respective fair values because of the short-term maturities or expected settlement dates of these instruments. The carrying amounts and estimated fair values of the Company’s long-term debt and foreign currency forward contracts are presented in the table below.

	September 28, 2012				December 31, 2011
	Carrying   Amount		Estimated   Fair Value		Carrying   Amount		Estimated   Fair Value
	(in millions)
Senior Notes(1)	$	2,940	$	3,277	$	2,938	$	2,940
Senior Subordinated Notes(1)		249		253		498		513
CODES(1)		689		691		689		658
Foreign currency forward contracts(2)		7		7		1		1

⁽¹⁾  The Company measures the fair value of its long-term debt using Level 2 inputs based primarily on current market yields for its existing debt traded in the secondary market.

⁽²⁾  See Note 15 for additional disclosures regarding the notional amounts and fair values of foreign currency forward contracts.