Fair Value Measurements And Financial Instruments (Tables)

9 Months Ended

Sep. 28, 2013

Summary Of Components Of Available-For-Sale Securities

The following table summarizes the components of the balance of the Company’s available-for-sale securities at September 28, 2013 and December 29, 2012 (in millions):



	September 28, 2013		December 29, 2012
Adjusted cost	$	7	$	9
Gross unrealized gains	26		32
Fair value	$	33	$	41

Summary Of Financial Assets Measured At Fair Value On A Recurring Basis

A summary of financial assets measured at fair value on a recurring basis at September 28, 2013 and December 29, 2012 is as follows (in millions):



	Balance Sheet Classification	September 28, 2013		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	848	$	848	$	—	$	—
Available-for-sale securities	Other current assets	33		33		—		—
Trading securities	Other assets	254		254		—		—
Total assets		$	1,135	$	1,135	$	—	$	—

Liabilities
Contingent consideration	Other liabilities	$	136	$	—	$	—	$	136
Total liabilities		$	136	$	—	$	—	$	136



	Balance Sheet Classification	December 29, 2012		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	964	$	964	$	—	$	—
Available-for-sale securities	Other current assets	41		41		—		—
Trading securities	Other assets	231		231		—		—
Total assets		$	1,236	$	1,236	$	—	$	—

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs (in millions):



Contingent Consideration Liability	Fair Value as of September 28, 2013		Valuation Technique	Unobservable Input	Range

Endosense regulatory-based milestone	$	136	Probability Weighted Discounted Cash Flow	Discount Rate	1.15%	-	1.71%
				Probability of Payment			90%
				Projected Year of Payment			2014

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Additionally, the following table provides a reconciliation of the beginning and ending balances of the Company's contingent consideration liability associated with its Endosense acquisition subsequent to August 19, 2013 as of September 28, 2013 (in millions):



	Fiscal Year 2013
Beginning balance	$	—
Purchase price contingent consideration	132
Change in fair value of contingent consideration	1
Foreign currency translation	3
Ending balance	$	136

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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