XML 44 R32.htm IDEA: XBRL DOCUMENT v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 9 Months Ended
Oct. 02, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] October 2, 2021 and December 31, 2020:
October 2,Quoted
Prices in
Active
Markets		Significant
Other
Observable
 Inputs		Significant
Unobservable
Inputs
(In millions)2021(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents
$10,518 $10,518 $— $— 
Investments in common stock, mutual funds and other similar instruments
61 61 — — 
Warrants
18 — 18 — 
Insurance contracts
178 — 178 — 
Derivative contracts
75 — 75 — 
Total Assets
$10,850 $10,579 $271 $— 
Liabilities
Derivative contracts
$4 $— $4 $— 
Contingent consideration
171 — — 171 
Total Liabilities
$175 $— $4 $171 
December 31,Quoted
Prices in
 Active
Markets		Significant
Other
Observable
 Inputs		Significant
 Unobservable
 Inputs
(In millions)2020(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents
$8,971 $8,971 $— $— 
Investments in common stock, mutual funds and other similar instruments
21 21 — — 
Warrants
7 — 7 — 
Insurance contracts
157 — 157 — 
Derivative contracts
28 — 28 — 
Total Assets
$9,184 $8,992 $192 $— 
Liabilities
Derivative contracts
$132 $— $132 $— 
Contingent consideration
70 — — 70 
Total Liabilities
$202 $— $132 $70 
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 (such as likelihood of achieving production or revenue milestones), of the contingent consideration.
Three Months EndedNine Months Ended
October 2,September 26,October 2,September 26,
(In millions)2021202020212020
Contingent Consideration
Beginning Balance
$149 $53 $70 $55 
Acquisitions (including assumed balances)
— — 179 — 
Payments
(1)(1)(43)(3)
Changes in fair value included in earnings
23 (8)(35)(8)
Ending Balance
$171 $44 $171 $44 
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table provides the aggregate notional value of outstanding derivative contracts.
October 2,December 31,
(In millions)20212020
Notional Amount
Interest rate swaps - fair value hedges
$— $1,000 
Cross-currency interest rate swaps - designated as net investment hedges
900 900 
Currency exchange contracts
4,823 5,206 
While certain derivatives are subject to netting arrangements with counterparties, the company does not offset derivative assets and liabilities within the balance sheet. The following tables present the fair value of derivative instruments in the
accompanying balance sheet and statement of income.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
 Fair Value – AssetsFair Value – Liabilities
 October 2,December 31,October 2,December 31,
(In millions)2021202020212020
Derivatives Designated as Hedging Instruments
Interest rate swaps (a)
$— $25 $— $— 
Cross-currency interest rate swaps (a)
10 — 4 46 
Derivatives Not Designated as Hedging Instruments
Currency exchange contracts (b)
65 3 — 86 
Total Derivatives
$75 $28 $4 $132 
(a)    The fair values of the interest rate swaps and cross-currency interest rate swaps are included in the accompanying balance sheet under the caption other assets or other long-term liabilities.
(b)    The fair value of the currency exchange contracts is included in the accompanying balance sheet under the captions other current assets or other accrued expenses.
The following amounts related to cumulative basis adjustments for fair value hedges were included in the accompanying balance sheet under the caption long-term obligations:
Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability
October 2,December 31,October 2,December 31,
(In millions)2021202020212020
Long-term Obligations$— $1,020 $— $25 
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
 Gain (Loss) Recognized
Three Months EndedNine Months Ended
October 2,September 26,October 2,September 26,
(In millions)2021202020212020
Fair Value Hedging Relationships
Interest rate swaps
Hedged long-term obligations - included in other income (expense)
$— $— $25 $(43)
Derivatives designated as hedging instruments - included in other income (expense)
— — (3)43 
Derivatives Designated as Cash Flow Hedges
Interest rate swaps
Included in unrealized losses on hedging instruments within other comprehensive items
— — — (85)
Amount reclassified from accumulated other comprehensive items to other expense
(2)(8)(21)(14)
Financial Instruments Designated as Net Investment Hedges
Foreign currency-denominated debt
Included in currency translation adjustment within other comprehensive items
297 (295)673 (276)
Cross-currency interest rate swaps
Included in currency translation adjustment within other comprehensive items
20 (30)52 (30)
Included in other income (expense)
2 2 6 9 
 Gain (Loss) Recognized
Three Months EndedNine Months Ended
October 2,September 26,October 2,September 26,
(In millions)2021202020212020
Derivatives Not Designated as Hedging Instruments
Currency exchange contracts
Included in cost of product revenues
7 (2)8 (2)
Included in other income (expense)
(8)51 147 7 
Cross-currency interest rate swaps
Included in other income (expense)
— 1 — (9)
Fair Value, by Balance Sheet Grouping [Table Text Block]
The carrying value and fair value of the company’s debt instruments are as follows:
October 2, 2021December 31, 2020
CarryingFairCarryingFair
(In millions)ValueValueValueValue
Senior notes
$21,521 $23,418 $21,723 $24,653 
Other
77 77 5 5 
$21,598 $23,495 $21,728 $24,658 
The fair value of debt instruments 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 debt instruments are as follows:
October 2, 2021December 31, 2020
CarryingFairCarryingFair
(In millions)ValueValueValueValue
Senior notes
$21,521 $23,418 $21,723 $24,653 
Other
77 77 5 5 
$21,598 $23,495 $21,728 $24,658 
The fair value of debt instruments 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.