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Fair Value Measurements and Financial Instruments (Tables)
12 Months Ended
Jan. 02, 2016
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis
A summary of assets and liabilities measured at fair value on a recurring basis at January 2, 2016 and January 3, 2015 is as follows (in millions):
 
Balance Sheet
Classification
January 2, 2016
 
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
$
273

 
$
273

 
$

 
$

Available-for-sale securities
Other current assets
10

 
10

 

 

Foreign currency forward contracts
Other current assets
14

 

 
14

 

Trading securities
Other assets
302

 
302

 

 

Foreign currency forward contracts
Other assets
2

 

 
2

 

Total assets
 
$
601

 
$
585

 
$
16

 
$

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Contingent consideration
Other current liabilities
$
118

 
$

 
$

 
$
118

Foreign currency forward contracts
Other current liabilities
6

 

 
6

 

Contingent consideration
Other liabilities
33

 

 

 
33

Foreign currency forward contracts
Other liabilities
3

 

 
3

 

Total liabilities
 
$
160

 
$

 
$
9

 
$
151

 
Balance Sheet
Classification
January 3, 2015
 
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
$
729

 
$
729

 
$

 
$

Available-for-sale securities
Other current assets
30

 
30

 

 

Trading securities
Other assets
301

 
301

 

 

Total assets
 
$
1,060

 
$
1,060

 
$

 
$

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Contingent consideration
Other liabilities
$
50

 
$

 
$

 
$
50

Total liabilities
 
$
50

 
$

 
$

 
$
50

Schedule of Significant Unobservable Inputs
The recurring Level 3 fair value measurements of the Company's contingent consideration liabilities include the following significant unobservable inputs (in millions):
Contingent Consideration Liabilities
Fair Value as of January 2, 2016
Valuation Technique
 
Unobservable Input
 
Value or Range
 
 
 
 
 
 
 
 
 
Spinal Modulation regulatory-based milestone
$
118

Probability Weighted Discounted Cash Flow
 
Discount Rate
 
 
 
2.1%
 
 
 
 
Probability of Payment
 
 
 
95%
 
 
 
 
Projected Year of Payment
 
 
 
2016
 
 
 
 
 
 
 
 
 
Spinal Modulation revenue-based milestones and earn-outs
4

Monte Carlo Simulation
 
Discount Rates
 
1.3%
-
17.0%
 
 
 
 
Expected Revenue Volatility
 
 
 
25.0%
 
 
 
 
Projected Years of Payments
 
2017, 2018
 
 
 
 
 
 
 
 
 
Nanostim, Inc. (Nanostim) revenue-based milestones
2

Probability Weighted Discounted Cash Flow
 
Discount Rate
 
 
 
5.0%
 
 
 
 
Probability of Payments
 
 
 
10.0%
 
 
 
 
Projected Years of Payments
 
2017, 2018
 
 
 
 
 
 
 
 
 
Assumed from Thoratec regulatory-based and revenue-based milestones
27

Probability Weighted Discounted Cash Flow
 
Discount Rate
 
 
 
5.5%
 
 
 
 
Probability of Payments
 
—%
-
90.0%
 
 
 
 
Projected Years of Payments
 
2017
-
2020
Total contingent consideration liabilities
$
151

 
 
 
 
 
 
 

Schedule of Contingent Consideration Liabilities
Additionally, the following table provides a reconciliation of the beginning and ending balances of the Company's contingent consideration liabilities (in millions):
 
Endosense
Nanostim
Spinal Modulation
Assumed from Thoratec
Total
Balance as of December 29, 2012
$

$

$

$

$

Initial fair value measurement of contingent consideration
132

56



188

Change in fair value of contingent consideration
1




1

Foreign currency translation
6




6

Balance as of December 28, 2013
139

56



195

Change in fair value of contingent consideration
28

(6
)


22

Payment of contingent consideration
(155
)



(155
)
Foreign currency translation
(12
)



(12
)
Balance as of January 3, 2015

50



50

Initial fair value measurement of contingent consideration


155


155

Liabilities assumed from Thoratec acquisition



33

33

Change in fair value of contingent consideration

(48
)
(33
)
(6
)
(87
)
Balance as of January 2, 2016
$

$
2

$
122

$
27

$
151

Schedule of Auction Rate Securities
The following table provides a reconciliation of the beginning and ending balances of the Company's auction rate securities (in millions):
 
Auction Rate Securities
Balance as of January 3, 2015
$

Auction rate securities acquired from Thoratec
5

Sale of auction rate securities
(5
)
Balance as of January 2, 2016
$