Fair Value Measurements And Financial Instruments (Tables)

9 Months Ended

Sep. 27, 2014

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 27, 2014 and December 28, 2013 (in millions):



	September 27, 2014		December 28, 2013
Adjusted cost	$	6	$	7
Gross unrealized gains	23		28
Fair value	$	29	$	35

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 27, 2014 and December 28, 2013 is as follows (in millions):



	Balance Sheet Classification	September 27, 2014		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	$	667	$	667	$	—	$	—
Available-for-sale securities	Other current assets	29		29		—		—
Trading securities	Other assets	298		298		—		—
Total assets		994		994		—		—

Liabilities
Contingent consideration	Other current liabilities	148		—		—		148
Contingent consideration	Other liabilities	58		—		—		58
Total liabilities		$	206	$	—	$	—	$	206



	Balance Sheet Classification	December 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	$	875	$	875	$	—	$	—
Available-for-sale securities	Other current assets	35		35		—		—
Trading securities	Other assets	279		279		—		—
Total assets		1,189		1,189		—		—

Liabilities
Contingent consideration	Other liabilities	195		—		—		195
Total liabilities		$	195	$	—	$	—	$	195

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

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



Contingent Consideration Liability	Fair Value as of September 27, 2014		Valuation Technique	Unobservable Input	Range

Endosense regulatory-based milestone	$	148	Probability Weighted Discounted Cash Flow	Discount Rate	1.05%	-	1.51%
				Probability of Payment			95%
				Projected Year of Payment			2014

Nanostim revenue-based milestone	58		Probability Weighted Discounted Cash Flow	Discount Rate			5.00%
				Probability of Payment			100%
				Projected Years of Three Annual Payments	2016, 2017, 2018
Total contingent consideration liability	$	206

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

The following table provides a reconciliation of the beginning and ending balances of the Company' contingent consideration liability associated with its Endosense and Nanostim acquisitions since December 28, 2013 as of September 27, 2014 (in millions):



	Endosense			Nanostim		Total
Balance as of December 28, 2013	$	139		$	56	$	195
Change in fair value of contingent consideration	—			1		1
Foreign currency translation	2			—		2
Balance as of March 29, 2014	141			57		198
Change in fair value of contingent consideration	7			1		8
Foreign currency translation	—			—		—
Balance as of June 28, 2014	148			58		206
Change in fair value of contingent consideration	8			—		8
Foreign currency translation	(8		)	—		(8		)
Balance as of September 27, 2014	$	148		$	58	$	206

- 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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