Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments (Tables)

 v2.3.0.11
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