Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments (Tables)

v2.4.0.6
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2012
Derivative Financial Instruments (Tables) [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:

 

  June 30,   Dec. 31,   July 2,
(In Millions) 2012   2011   2011
Currency forwards $ 11,336   $ 11,203   $ 8,661
Currency interest rate swaps   1,877     1,650     1,713
Embedded debt derivatives   3,600     3,600     3,600
Equity options   45     54     44
Interest rate swaps   1,431     1,837     2,055
Total return swaps   861     761     797
Other   108     128     120
Total $ 19,258   $ 19,233   $ 16,990

The gross notional amounts for currency forwards and currency interest rate swaps (presented by currency) were as follows:

  June 30,   Dec. 31,   July 2,
(In Millions) 2012   2011   2011
British pound sterling $ 406   $ 459   $ 368
Chinese yuan   805     688     403
Euro   3,731     3,904     4,289
Israeli shekel   2,099     2,168     1,459
Japanese yen   4,056     3,477     2,935
Malaysian ringgit   870     805     365
Other   1,246     1,352     555
Total $ 13,213   $ 12,853   $ 10,374
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair values of our derivative instruments as of June 30, 2012 and December 31, 2011 were as follows:

    June 30, 2012   Dec. 31, 2011
    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 $ 21   $ 1   $ 190   $ 4   $ 61   $ —   $ 170   $ 7
Other   —     —     —     —     —     —     1     —
Total derivatives designated as                                              
  hedging instruments $ 21   $ 1   $ 190   $ 4   $ 61   $ —   $ 171   $ 7
Derivatives not designated as                                              
  hedging instruments                                              
Currency forwards $ 48   $ —   $ 43   $ —   $ 54   $ —   $ 34   $ —
Currency interest rate swaps   69     36     1     2     41     33     11     10
Embedded debt derivatives   —     —     —     8     —     —     —     10
Equity options   —     6     8     —     —     6     9     —
Interest rate swaps   3     —     45     —     3     —     63     —
Total return swaps   4     —     —     —     7     —     —     —
Other   —     21     1     —     —     24     —     —
Total derivatives not designated                                              
  as hedging instruments $ 124   $ 63   $ 98   $ 10   $ 105   $ 63   $ 117   $ 20
                                               
Total derivatives $ 145   $ 64   $ 288   $ 14   $ 166   $ 63   $ 288   $ 27
Schedule Of Derivative Instruments In Cash Flow Hedging Relationships [Table Text Block]

The before-tax effects of derivative instruments in cash flow hedging relationships for the three and six months ended June 30, 2012 and July 2, 2011 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 2012   Q2 2011   Location   Q2 2012   Q2 2011
Currency forwards $ (41)   $ 55   Cost of sales   $ 11   $ 42
              Research and development     (15)     15
              Marketing, general and administrative     (6)     12
Other   (1)     (1)   Cost of sales     —     1
Total $ (42)   $ 54       $ (10)   $ 70
                           
  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) YTD 2012   YTD 2011   Location   YTD 2012   YTD 2011
Currency forwards $ (115)   $ 256   Cost of sales   $ 26   $ 76
              Research and development     (36)     23
              Marketing, general and administrative     (11)     17
Other   (1)     2   Cost of sales     (1)     2
Total $ (116)   $ 258       $ (22)   $ 118
Schedule Of Derivative Instruments Not Designated As Hedging Instruments [Table 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)   June 30,   July 2,   June 30,   July 2,
(In Millions) Recognized in Income on Derivatives   2012   2011   2012   2011
Currency forwards Interest and other, net   $ (43)   $ 2   $ (28)   $ 16
Currency interest rate swaps Interest and other, net     69     (18)     13     (128)
Equity options Gains (losses) on equity investments, net     1     51     1     (66)
Interest rate swaps Interest and other, net     4     (18)     34     (19)
Total return swaps Various     (57)     (3)     2     20
Other Gains (losses) on equity investments, net     (1)     —     (3)     2
Total       $ (27)   $ 14   $ 19   $ (175)