Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments (Tables)

v2.4.0.6
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 29, 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:

 

  Sept. 29,   Dec. 31,   Oct. 1,
(In Millions) 2012   2011   2011
Currency forwards $ 10,158   $ 11,203   $ 9,902
Currency interest rate swaps   2,574     1,650     1,870
Currency options   1,751     2     —
Embedded debt derivatives   3,600     3,600     3,600
Equity options   45     54     31
Interest rate swaps   1,132     1,837     2,001
Total return swaps   920     761     731
Other   111     126     136
Total $ 20,291   $ 19,233   $ 18,271

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

  Sept. 29,   Dec. 31,   Oct. 1,
(In Millions) 2012   2011   2011
British pound sterling $ 312   $ 459   $ 371
Chinese yuan   634     688     606
Euro   6,276     3,904     3,958
Israeli shekel   1,991     2,168     1,987
Japanese yen   3,831     3,477     3,464
Malaysian ringgit   340     805     549
Other   1,099     1,354     837
Total $ 14,483   $ 12,855   $ 11,772
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair values of our derivative instruments as of September 29, 2012 and December 31, 2011 were as follows:

    Sept. 29, 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 $ 51   $ 4   $ 60   $ —   $ 61   $ —   $ 170   $ 7
Other   —     —     1     —     —     —     1     —
Total derivatives designated as                                              
  hedging instruments $ 51   $ 4   $ 61   $ —   $ 61   $ —   $ 171   $ 7
Derivatives not designated as                                              
  hedging instruments                                              
Currency forwards $ 35   $ —   $ 30   $ —   $ 54   $ —   $ 34   $ —
Currency interest rate swaps   39     23     41     10     41     33     11     10
Currency options   38     —     38     —     —     —     —     —
Embedded debt derivatives   —     —     —     5     —     —     —     10
Equity options   —     5     2     —     —     6     9     —
Interest rate swaps   1     —     41     —     3     —     63     —
Total return swaps   4     —     —     —     7     —     —     —
Other   —     20     —     —     —     24     —     —
Total derivatives not designated                                              
  as hedging instruments $ 117   $ 48   $ 152   $ 15   $ 105   $ 63   $ 117   $ 20
                                               
Total derivatives $ 168   $ 52   $ 213   $ 15   $ 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 nine months ended September 29, 2012 and October 1, 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) Q3 2012   Q3 2011   Location   Q3 2012   Q3 2011
Currency forwards $ 190   $ (101)   Cost of sales   $ (10)   $ 38
              Research and development     (25)     8
              Marketing, general and administrative     (13)     8
Other   1     —   Cost of sales     —     —
Total $ 191   $ (101)       $ (48)   $ 54
                           
  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 $ 75   $ 155   Cost of sales   $ 16   $ 114
              Research and development     (61)     31
              Marketing, general and administrative     (24)     25
Other   —     2   Cost of sales     (1)     2
Total $ 75   $ 157       $ (70)   $ 172
Not Designated as Hedging Instrument [Member]
  
Derivative Financial Instruments (Tables) [Abstract]  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [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   Nine Months Ended
  Location of Gains (Losses)   Sept. 29,   Oct. 1,   Sept. 29,   Oct. 1,
(In Millions) Recognized in Income on Derivatives   2012   2011   2012   2011
Currency forwards Interest and other, net   $ 19   $ 34   $ (9)   $ 50
Currency interest rate swaps Interest and other, net     (53)     85     (40)     (43)
Currency options Interest and other, net     3     —     3     —
Equity options Gains (losses) on equity investments, net     —     (4)     1     (70)
Interest rate swaps Interest and other, net     (3)     (11)     31     (30)
Total return swaps Various     69     (64)     71     (44)
Other Gains (losses) on equity investments, net     (1)     1     (4)     3
Total       $ 34   $ 41   $ 53   $ (134)