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Fair Value Measurements (Tables)
 6 Months Ended
Jul. 02, 2016
Fair Value Disclosures [Abstract]  
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 July 2, 2016 and January 2, 2016 (in millions):
 
July 2, 2016
 
January 2, 2016
Adjusted cost
$
5

 
$
5

Gross unrealized gains
6

 
6

Gross unrealized losses
—

 
(1
)
Fair value
$
11

 
$
10
Summary Of Financial Assets and Liabilities Measured At Fair Value On A Recurring Basis
A summary of assets and liabilities measured at fair value on a recurring basis at July 2, 2016 and January 2, 2016 is as follows (in millions):
 
Balance Sheet
Classification
July 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
$
52

 
$
52

 
$
—

 
$
—

   Available-for-sale
     securities
Other current assets
11

 
11

 
—

 
—

   Foreign currency forward
contracts
Other current assets
4

 
—

 
4

 
—

   Trading securities
Other assets
312

 
312

 
—

 
—

   Foreign currency forward
     contracts
Other assets
1

 
—

 
1

 
—

Total assets
 
$
380

 
$
375

 
$
5

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Foreign currency forward contracts
Other current liabilities
$
34

 
$
—

 
$
34

 
$
—

Contingent consideration
Other liabilities
31

 
—

 
—

 
31

Foreign currency forward contracts
Other liabilities
5

 
—

 
5

 
—

Total liabilities
 
$
70

 
$
—

 
$
39

 
$
31


 
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
Summary of Level 3 Fair Value Measurements of Contingent Consideration Liability
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 July 2, 2016
Valuation Technique
 
Unobservable Input
 
Value or Range
 
 
 
 
 
 
 
 
 
Spinal Modulation revenue-based milestones and earn-outs
$
2

Monte Carlo Simulation
 
Discount Rates
 
0.6%
-
15.5%
 
 
 
 
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
 
 
 
4.4%
 
 
 
 
Probabilities of Payments
 
—%
-
90.0%
 
 
 
 
Projected Years of Payments
 
2018
-
2022
Total contingent consideration liabilities
$
31

 
 
 
 
 
 
 
Unobservable Input Reconciliation of Contingent Consideration Liability
Additionally, the following table provides a reconciliation of the beginning and ending balances of the Company's recurring Level 3 fair value measurements (in millions):
 
Nanostim
Spinal Modulation
Assumed from Thoratec
Total
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

Change in fair value of contingent consideration
—

8

1

9

Transfer out of Level 3 fair value measurement due to contractual settlement
—

(124
)
—

(124
)
Balance as of April 2, 2016
2

6

28

36

Change in fair value of contingent consideration
—

(4
)
(1
)
(5
)
Balance as of July 2, 2016
$
2

$
2

$
27

$
31