Derivative Financial Instruments (Tables)
|
6 Months Ended |
Jul. 02, 2011
|
Derivative Financial Instruments (Tables) [Abstract] |
|
Gross Notional Amounts for Outstanding Derivatives [Text Block] |
Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:
|
July 2, |
|
Dec. 25, |
|
June 26, |
(In Millions) |
2011 |
|
2010 |
|
2010 |
Currency forwards |
$ |
8,661 |
|
$ |
8,502 |
|
$ |
6,940 |
Interest rate swaps |
|
2,055 |
|
|
2,166 |
|
|
2,156 |
Currency interest rate swaps |
|
1,713 |
|
|
2,259 |
|
|
2,287 |
Embedded debt derivatives |
|
3,600 |
|
|
3,600 |
|
|
3,600 |
Total return swaps |
|
797 |
|
|
627 |
|
|
525 |
Equity options |
|
44 |
|
|
496 |
|
|
511 |
Currency options |
|
— |
|
|
94 |
|
|
94 |
Other |
|
120 |
|
|
66 |
|
|
68 |
Total |
$ |
16,990 |
|
$ |
17,810 |
|
$ |
16,181 |
|
Gross Notional Amounts for Currency Forwards, Currency Interest Rate Swaps, and Currency Options, Presented by Currency [Text Block] |
The gross notional amounts for currency forwards, currency interest rate swaps, and currency options (presented by currency) were as follows:
|
July 2, |
|
Dec. 25, |
|
June 26, |
(In Millions) |
2011 |
|
2010 |
|
2010 |
Euro |
$ |
4,289 |
|
$ |
4,445 |
|
$ |
4,371 |
Japanese yen |
|
2,935 |
|
|
3,440 |
|
|
2,412 |
Israeli shekel |
|
1,459 |
|
|
1,191 |
|
|
712 |
Chinese yuan |
|
403 |
|
|
347 |
|
|
368 |
Malaysian ringgit |
|
365 |
|
|
382 |
|
|
310 |
British pound sterling |
|
368 |
|
|
424 |
|
|
514 |
Other |
|
555 |
|
|
626 |
|
|
634 |
Total |
$ |
10,374 |
|
$ |
10,855 |
|
$ |
9,321 |
|
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Text Block] |
The fair values of our derivative instruments as of July 2, 2011 and December 25, 2010 were as follows:
|
|
July 2, 2011 |
|
Dec. 25, 2010 |
|
|
Other |
|
Other |
|
Other |
|
Other |
|
Other |
|
Other |
|
Other |
|
Other |
|
|
Current |
|
Long-Term |
|
Accrued |
|
Long-Term |
|
Current |
|
Long-Term |
|
Accrued |
|
Long-Term |
(In Millions) |
Assets |
|
Assets |
|
Liabilities |
|
Liabilities |
|
Assets |
|
Assets |
|
Liabilities |
|
Liabilities |
Derivatives designated as |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
hedging instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards |
$ |
171 |
|
$ |
2 |
|
$ |
9 |
|
$ |
1 |
|
$ |
120 |
|
$ |
3 |
|
$ |
43 |
|
$ |
3 |
Other |
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
Total derivatives designated as |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
hedging instruments |
$ |
173 |
|
$ |
2 |
|
$ |
9 |
|
$ |
1 |
|
$ |
122 |
|
$ |
3 |
|
$ |
43 |
|
$ |
3 |
Derivatives not designated as |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
hedging instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards |
$ |
28 |
|
$ |
— |
|
$ |
17 |
|
$ |
— |
|
$ |
35 |
|
$ |
— |
|
$ |
14 |
|
$ |
— |
Interest rate swaps |
|
1 |
|
|
— |
|
|
80 |
|
|
— |
|
|
2 |
|
|
— |
|
|
96 |
|
|
— |
Currency interest rate swaps |
|
7 |
|
|
— |
|
|
60 |
|
|
48 |
|
|
64 |
|
|
17 |
|
|
47 |
|
|
13 |
Embedded debt derivatives |
|
— |
|
|
— |
|
|
— |
|
|
36 |
|
|
— |
|
|
— |
|
|
— |
|
|
31 |
Total return swaps |
|
— |
|
|
5 |
|
|
— |
|
|
— |
|
|
41 |
|
|
6 |
|
|
— |
|
|
— |
Equity options |
|
— |
|
|
1 |
|
|
6 |
|
|
— |
|
|
65 |
|
|
5 |
|
|
7 |
|
|
— |
Other |
|
— |
|
|
23 |
|
|
— |
|
|
— |
|
|
1 |
|
|
19 |
|
|
1 |
|
|
— |
Total derivatives not designated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as hedging instruments |
$ |
36 |
|
$ |
29 |
|
$ |
163 |
|
$ |
84 |
|
$ |
208 |
|
$ |
47 |
|
$ |
165 |
|
$ |
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivatives |
$ |
209 |
|
$ |
31 |
|
$ |
172 |
|
$ |
85 |
|
$ |
330 |
|
$ |
50 |
|
$ |
208 |
|
$ |
47 |
|
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Text Block] |
The before-tax effects of derivative instruments in cash flow hedging relationships for the three and six months ended July 2, 2011 and June 26, 2010 were as follows:
|
Gains (Losses) Recognized |
|
|
|
in OCI on Derivatives |
|
Gains (Losses) Reclassified from Accumulated OCI Into |
|
(Effective Portion) |
|
Income by Derivative Instrument Type (Effective Portion) |
(In Millions) |
Q2 2011 |
|
Q2 2010 |
|
Location |
|
Q2 2011 |
|
Q2 2010 |
Currency forwards |
$ |
55 |
|
$ |
(126) |
|
Cost of sales |
|
$ |
42 |
|
$ |
8 |
|
|
|
|
|
|
|
Research and development |
|
|
15 |
|
|
8 |
|
|
|
|
|
|
|
Marketing, general and administrative |
|
|
12 |
|
|
(1) |
Other |
|
(1) |
|
|
3 |
|
Cost of sales |
|
|
1 |
|
|
(1) |
Total |
$ |
54 |
|
$ |
(123) |
|
|
|
$ |
70 |
|
$ |
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) Recognized |
|
|
|
in OCI on Derivatives |
|
Gains (Losses) Reclassified from Accumulated |
|
(Effective Portion) |
|
OCI into Income by Derivative Instrument Type (Effective Portion) |
(In Millions) |
YTD 2011 |
|
YTD 2010 |
|
Location |
|
YTD 2011 |
|
YTD 2010 |
Currency forwards |
$ |
256 |
|
$ |
(178) |
|
Cost of sales |
|
$ |
76 |
|
$ |
29 |
|
|
|
|
|
|
|
Research and development |
|
|
23 |
|
|
17 |
|
|
|
|
|
|
|
Marketing, general and administrative |
|
|
17 |
|
|
6 |
Other |
|
2 |
|
|
3 |
|
Cost of sales |
|
|
2 |
|
|
(3) |
Total |
$ |
258 |
|
$ |
(175) |
|
|
|
$ |
118 |
|
$ |
49 |
|
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Text Block] |
The effects of derivative instruments not designated as hedging instruments on the consolidated condensed statements of income were as follows:
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Location of Gains (Losses) |
|
July 2, |
|
June 26, |
|
July 2, |
|
June 26, |
(In Millions) |
Recognized in Income on Derivatives |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Currency forwards |
Interest and other, net |
|
$ |
2 |
|
$ |
108 |
|
$ |
16 |
|
$ |
143 |
Interest rate swaps |
Interest and other, net |
|
|
(18) |
|
|
(33) |
|
|
(19) |
|
|
(46) |
Currency interest rate swaps |
Interest and other, net |
|
|
(18) |
|
|
144 |
|
|
(128) |
|
|
226 |
Total return swaps |
Various |
|
|
(3) |
|
|
(26) |
|
|
20 |
|
|
(2) |
Other |
Interest and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
Equity options |
Gains (losses) on other equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments, net |
|
|
51 |
|
|
50 |
|
|
(66) |
|
|
15 |
Other |
Gains (losses) on other equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments, net |
|
|
— |
|
|
— |
|
|
2 |
|
|
(4) |
Total |
|
|
|
$ |
14 |
|
$ |
243 |
|
$ |
(175) |
|
$ |
332 |
|