XML 67 R32.htm IDEA: XBRL DOCUMENT v3.20.1
Fair Value Measurements and Fair Value of Financial Instruments (Tables)
3 Months Ended
Mar. 28, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of March 28, 2020 and December 31, 2019:
March 28,Quoted
Prices in
Active
Markets
Significant
Other
Observable
 Inputs
Significant
Unobservable
Inputs
(In millions)2020(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents
$1,727  $1,727  $—  $—  
Investments in common stock, mutual funds and other similar instruments
17  17  —  —  
Warrants
 —   —  
Insurance contracts
115  —  115  —  
Derivative contracts
110  —  110  —  
Total Assets
$1,975  $1,744  $231  $—  
Liabilities
Derivative contracts
$32  $—  $32  $—  
Contingent consideration
54  —  —  54  
Total Liabilities
$86  $—  $32  $54  

December 31,Quoted
Prices in
 Active
Markets
Significant
Other
Observable
 Inputs
Significant
 Unobservable
 Inputs
(In millions)2019(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents
$1,280  $1,280  $—  $—  
Investments in common stock, mutual funds and other similar instruments
19  19  —  —  
Warrants
 —   —  
Insurance contracts
131  —  131  —  
Derivative contracts
37  —  37  —  
Total Assets
$1,473  $1,299  $174  $—  
Liabilities
Derivative contracts
$24  $—  $24  $—  
Contingent consideration
55  —  —  55  
Total Liabilities
$79  $—  $24  $55  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] The following table provides a rollforward of the fair value, as determined by level 3 inputs, of the contingent consideration.
Three Months Ended
March 28,March 30,
(In millions)20202019
Contingent Consideration
Beginning Balance
$55  $37  
Payments
(1) —  
Ending Balance
$54  $37  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table provides the aggregate notional value of outstanding derivative contracts.
March 28,December 31,
(In millions)20202019
Notional Amount
Interest rate swaps - fair value hedges (described in Note 7)
$1,000  $1,000  
Interest rate swaps - cash flow hedges
750  —  
Cross-currency interest rate swaps - designated as net investment hedges
900  900  
Cross-currency interest rate swaps
1,000  —  
Currency exchange contracts
6,109  2,846  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
 Fair Value – AssetsFair Value – Liabilities
 March 28,December 31,March 28,December 31,
(In millions)2020201920202019
Derivatives Designated as Hedging Instruments
Interest rate swaps (a)
$22  $—  $20  $13  
Cross-currency interest rate swaps (a)
43  33  —  —  
Derivatives Not Designated as Hedging Instruments
Currency exchange contracts (b)
45    11  
Cross-currency interest rate swaps (a)
—  —  10  —  
Total Derivatives
$110  $37  $32  $24  
(a)The fair values of the interest rate swaps and cross-currency interest rate swaps are included in the consolidated balance sheet under the caption other assets or other long-term liabilities.
(b)The fair value of the currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses.
The following amounts related to cumulative basis adjustments for fair value hedges were included in the consolidated balance sheet under the caption long-term obligations:
Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability
March 28,December 31,March 28,December 31,
(In millions)2020201920202019
Long-term Obligations$1,016  $980  $22  $(13) 
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
 Gain (Loss) Recognized
Three Months Ended
March 28,March 30,
(In millions)20202019
Fair Value Hedging Relationships
Interest rate swaps
Hedged long-term obligations - included in other expense, net
$(36) $(28) 
Derivatives designated as hedging instruments - included in other expense, net
36  29  
Derivatives Designated as Cash Flow Hedges
Interest rate swaps
Included in unrealized losses on hedging instruments within other comprehensive items
(81) —  
Amount reclassified from accumulated other comprehensive items to other expense, net
(2) (3) 
Financial Instruments Designated as Net Investment Hedges
Foreign currency-denominated debt
Included in currency translation adjustment within other comprehensive items
83  156  
Cross-currency interest rate swaps
Included in currency translation adjustment within other comprehensive items
 37  
Included in other expense, net
 14  
Derivatives Not Designated as Hedging Instruments
Currency exchange contracts
Included in cost of product revenues
  
Included in other expense, net
40  17  
Cross-currency interest rate swaps
Included in other expense, net
(10) —  
Fair Value, by Balance Sheet Grouping [Table Text Block]
The carrying value and fair value of the company’s notes receivable and debt obligations are as follows:
March 28, 2020December 31, 2019
CarryingFairCarryingFair
(In millions)ValueValueValueValue
Debt Obligations:
Senior notes
$19,887  $19,795  $17,736  $18,650  
Commercial paper
66  66  —  —  
Other
16  16  16  16  
$19,969  $19,877  $17,752  $18,666  
The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements.
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]
The carrying value and fair value of the company’s notes receivable and debt obligations are as follows:
March 28, 2020December 31, 2019
CarryingFairCarryingFair
(In millions)ValueValueValueValue
Debt Obligations:
Senior notes
$19,887  $19,795  $17,736  $18,650  
Commercial paper
66  66  —  —  
Other
16  16  16  16  
$19,969  $19,877  $17,752  $18,666  
The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements.