Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments (Tables)

v2.4.0.6
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2011
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) as of December 31, 2011, December 25, 2010, and December 26, 2009 were as follows:

(In Millions) 2011   2010   2009
Currency forwards $ 11,203   $ 8,502   $ 5,732
Embedded debt derivatives   3,600     3,600     3,600
Interest rate swaps   1,837     2,166     1,698
Currency interest rate swaps   1,650     2,259     1,577
Total return swaps   761     627     530
Equity options   54     496     50
Currency options   2     94     375
Other   126     66     80
Total $ 19,233   $ 17,810   $ 13,642

The gross notional amounts for currency forwards, currency interest rate swaps, and currency options (presented by currency) as of December 31, 2011, December 25, 2010, and December 26, 2009 were as follows:

(In Millions) 2011   2010   2009
Euro $ 3,904   $ 4,445   $ 3,330
Japanese yen   3,477     3,440     1,764
Israeli shekel   2,168     1,191     707
Malaysian ringgit   805     382     310
Chinese yuan   688     347     434
British pound sterling   459     424     563
Other   1,354     626     576
Total $ 12,855   $ 10,855   $ 7,684
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair values of our derivative instruments as of December 31, 2011 and December 25, 2010 were as follows:

    2011   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 $ 61   $ —   $ 170   $ 7   $ 120   $ 3   $ 43   $ 3
Other   —     —     1     —     2     —     —     —
Total derivatives designated as                                              
  hedging instruments $ 61   $ —   $ 171   $ 7   $ 122   $ 3   $ 43   $ 3
Derivatives not designated as                                              
  hedging instruments                                              
Currency forwards $ 54   $ —   $ 34   $ —   $ 35   $ —   $ 14   $ —
Interest rate swaps   3     —     63     —     2     —     96     —
Currency interest rate swaps   41     33     11     10     64     17     47     13
Embedded debt derivatives   —     —     —     10     —     —     —     31
Total return swaps   7     —     —     —     41     6     —     —
Equity options   —     6     9     —     65     5     7     —
Other   —     24     —     —     1     19     1     —
Total derivatives not designated                                              
  as hedging instruments $ 105   $ 63   $ 117   $ 20   $ 208   $ 47   $ 165   $ 44
                                               
Total derivatives $ 166   $ 63   $ 288   $ 27   $ 330   $ 50   $ 208   $ 47
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 years ended December 31, 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) 2011   2010   2009   Location   2011   2010   2009
Currency forwards $ 20   $ 66   $ 43   Cost of sales   $ 118   $ 49   $ (12)
                    Research and development     20     27     (30)
                    Marketing, general and administrative     19     4     (12)
Other   —     4     (12)   Cost of sales     4     (2)     (13)
Total $ 20   $ 70   $ 31       $ 161   $ 78   $ (67)
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 statements of income for the three years ended December 31, 2011 were as follows:

  Location of Gains (Losses)            
(In Millions) Recognized in Income on Derivatives   2011   2010   2009
Currency forwards Interest and other, net   $ 58   $ 72   $ 37
Interest rate swaps Interest and other, net     (26)     (59)     15
Currency interest rate swaps Interest and other, net     (17)     74     (7)
Total return swaps Various     (13)     70     51
Other Interest and other, net     —     (1)     2
Equity options Gains (losses) on equity investments, net     (67)     59     5
Other Gains (losses) on equity investments, net     4     (2)     12
Total     $ (61)   $ 213   $ 115