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Fair Value Measurements
6 Months Ended
Jul. 04, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
The Company holds certain fixed income securities, equity securities and derivatives, which are recognized and disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's assumptions about current market conditions.
The fair value hierarchy and related valuation methodologies are as follows:
Level 1—Quoted prices for identical instruments in active markets.
Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.
Level 3—Valuations derived from valuation techniques, in which one or more significant inputs are unobservable.
The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of July 4, 2015 and December 31, 2014 were as follows: 
July 4, 2015
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
Foreign exchange derivative contracts
$

 
$
3

 
$
3

Available-for-sale securities:
 
 
 
 
 
Government, agency, and government-sponsored enterprise obligations

 
31

 
31

Corporate bonds

 
9

 
9

Common stock
23

 

 
23

Liabilities:
 
 
 
 
 
Foreign exchange derivative contracts
$

 
$
1

 
$
1

Interest rate swap

 
2

 
2

December 31, 2014
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
Foreign exchange derivative contracts
$

 
$
1

 
$
1

Available-for-sale securities:
 
 
 
 
 
Government, agency, and government-sponsored enterprise obligations

 
14

 
14

Corporate bonds

 
16

 
16

Mutual funds

 
2

 
2

Common stock
71

 

 
71

Liabilities:
 
 
 
 
 
Foreign exchange derivative contracts
$

 
$
5

 
$
5

Interest rate swap

 
2

 
2


The Company had no Level 3 holdings as of July 4, 2015 or December 31, 2014.
At July 4, 2015 and December 31, 2014, the Company had $2.2 billion and $3.3 billion, respectively, of investments in money market mutual funds (Level 2) classified as Cash and cash equivalents in its condensed consolidated balance sheets. The money market funds had quoted market prices that are equivalent to par.
Using quoted market prices and market interest rates, the Company determined that the fair value of long-term debt at July 4, 2015 was $3.4 billion (Level 2).
All other financial instruments are carried at cost, which is not materially different from the instruments’ fair values.