Derivative Instruments (Tables)

3 Months Ended

Apr. 02, 2016

Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations

Summary financial information related to these activities included in the Company’s consolidated statements of operations as other (expense) income is as follows (in millions):

	Three Months Ended
	April 2, 2016			April 4, 2015
Realized (loss) gain from foreign exchange derivatives	$	(5	)	$	1
Gain (loss) on net foreign currency assets	6			(28		)
Foreign exchange gain (loss)	$	1		$	(27	)

	April 2, 2016		December 31, 2015
Notional balance of outstanding contracts (in millions):
British Pound/US dollar	£	7	£	5
Euro/US dollar	€	125	€	133
British Pound/Euro	£	—	£	7
Canadian Dollar/US dollar	$	3	$	5
Czech Koruna/US dollar	Kč	240	Kč	140
Brazilian Real/US dollar	R$	10	R$	28
Malaysian Ringgit/US dollar	RM	52	RM	13
Net fair value of outstanding contracts	$	—	$	1

Financial Information Related to Cash Flow Hedges

Summary financial information related to the cash flow hedges within comprehensive (loss) income is as follows (in millions):

	Three Months Ended
	April 2, 2016			April 4, 2015
Change in unrealized (loss) gain on anticipated sales hedging:
Gross	$	(19	)	$	2
Income tax (benefit) expense	(4		)	—
Net	$	(15	)	$	2

Financial Information Related to Cash Flow Hedges of Future Revenues

Summary financial information related to the cash flow hedges of future revenues is as follows (in millions, except percentages):

	April 2, 2016			December 31, 2015
Notional balance of outstanding contracts versus the dollar	€	523		€	193
Hedge effectiveness	100		%	100		%

	Three Months Ended
	April 2, 2016			April 4, 2015
Net (loss) gain included in revenue	$	(2	)	$	6

Forward Contract Amounts Recorded in Consolidated Balance Sheet

The amounts recorded on the consolidated balance sheets are as follows (in millions):

	April 2, 2016		December 31, 2015
Assets:
Prepaid expenses and other current assets	$	—	$	7
Total	$	—	$	7
Liabilities:
Accrued liabilities	$	23	$	—
Total	$	23	$	—

Schedule of Gross and Net Amount Offset

The gross fair values and related offsetting counterparty fair values as well as the net fair value amounts at April 2, 2016 were as follows (in millions):

	Gross Fair Value		Counterparty Offsetting		Net Fair Value in the Consolidated Balance Sheets
Counterparty A	$	18	$	10	$	8
Counterparty B	6		3		3
Counterparty C	6		3		3
Counterparty D	12		5		7
Counterparty E	6		2		4
Counterparty F	6		3		3
Counterparty G	7		—		7
Total	$	61	$	26	$	35

Schedule of Series of Forward Starting Swaps Each with a Term of One Year

The New Swaps have the following notional amounts per year (in millions):

	April 2, 2016
Year 2016	$	1,010
Year 2017	697
Year 2018	544
Year 2019	544
Year 2020	272
Year 2021	272
Notional balance of outstanding contracts	$	3,339

Forward Interest Rate Swap

Forward Contract Amounts Recorded in Consolidated Balance Sheet

The balance sheet position of the New Swaps designated in a hedge relationship is as follows (in millions):

	April 2, 2016			December 31, 2015
Accrued liabilities	$	1		$	1
Other long-term liabilities	$	25		$	14
Hedge effectiveness	100		%	100		%

Schedule of Gain (Loss) Recognized on Forward Interest Rate Swaps Not Designated in Hedge Relationship

The gain recognized on the forward interest rate swaps not designated in a hedge relationship is combined with interest expense and other, net in the consolidated statements of operations is as follows (in millions):

	Three Months Ended
	April 2, 2016		April 4, 2015
Interest income on forward interest rate swaps	$	1	$	2

Schedule of Loss Recognized in Other Comprehensive Unrealized Loss on Forward Interest Rate Swaps Designated in Hedging Relationship

The gain recognized on the forward interest rate swaps not designated in a hedge relationship is combined with interest expense and other, net in the consolidated statements of operations is as follows (in millions):

	Three Months Ended
	April 2, 2016		April 4, 2015
Interest income on forward interest rate swaps	$	1	$	2

The loss recognized in other comprehensive unrealized loss on the forward interest rate swaps designated in a hedging relationship is as follows (in millions):

	Three Months Ended
	April 2, 2016			April 4, 2015
Change in unrealized loss on forward interest rate swap hedging:
Gross	$	(10	)	$	(12	)
Income tax benefit	(3		)	(5		)
Net	$	(7	)	$	(7	)