Fair Value Measurements (Tables)

The following table is a summary of the activity related to derivatives designated as cash flow hedges for the fiscal years ended January 3, 2016 and December 28, 2014:



(Dollars in Millions)	Gain/(Loss) Recognized In Accumulated OCI⁽¹⁾					Gain/(Loss) Reclassified From Accumulated OCI Into Income⁽¹⁾				Gain/(Loss) Recognized In Other Income/Expense⁽²⁾
Cash Flow Hedges by Income Statement Caption	2015			2014		2015		2014		2015		2014
Sales to customers ⁽³⁾	$	(83	)	(106	)	(126	)	(3	)	(5	)	(5	)
Cost of products sold ⁽³⁾	(22		)	58		122		204		14		2
Research and development expense ⁽³⁾	(3		)	39		6		7		1		—
Interest (income)/Interest expense, net ⁽⁴⁾	(40		)	21		—		(15	)	—		—
Other (income) expense, net ⁽³⁾	33			80		60		3		1		—
Total	$	(115	)	92		62		196		11		(3	)

All amounts shown in the table above are net of tax.


⁽¹⁾	Effective portion


⁽²⁾	Ineffective portion


⁽³⁾	Forward foreign exchange contracts


⁽⁴⁾	Cross currency interest rate swaps

The Company’s significant financial assets and liabilities measured at fair value as of January 3, 2016 and December 28, 2014 were as follows:



	2015					2014
(Dollars in Millions)	Level 1		Level 2	Level 3	Total	Total ⁽¹⁾
Derivatives designated as hedging instruments:
Assets:
Forward foreign exchange contracts ⁽⁷⁾	$	—	452	—	452	996
Interest rate contracts ^(2)(4)(7)	—		28	—	28	31
Total	—		480	—	480	1,027
Liabilities:
Forward foreign exchange contracts ⁽⁸⁾	—		358	—	358	751
Interest rate contracts ^(3)(4)(8)	—		241	—	241	8
Total	—		599	—	599	759
Derivatives not designated as hedging instruments:
Assets:
Forward foreign exchange contracts ⁽⁷⁾	—		33	—	33	29
Liabilities:
Forward foreign exchange contracts ⁽⁸⁾	—		41	—	41	51
Available For Sale Other Investments:
Equity investments⁽⁵⁾	1,494		—	—	1,494	679
Debt securities⁽⁶⁾	$	—	8,316	—	8,316	—


⁽¹⁾	2014 assets and liabilities are all classified as Level 2 with the exception of equity investments of $679 million, which are classified as Level 1.


⁽²⁾	Includes $20 million and $29 million of non-current assets for the fiscal years ending January 3, 2016 and December 28, 2014, respectively.


⁽³⁾	Includes $239 million and $8 million of non-current liabilities for the fiscal years ending January 3, 2016 and December 28, 2014, respectively.


⁽⁴⁾	Includes cross currency interest rate swaps and interest rate swaps.

⁽⁵⁾

Classified as non-current other assets. The carrying amount of the equity investments were $528 million and $284 million as of January 3, 2016 and December 28, 2014, respectively. The unrealized gains were $979 million and $406 million as of January 3, 2016 and December 28, 2014, respectively. The unrealized losses were $13 million and $11 million as of January 3, 2016 and December 28, 2014, respectively.


⁽⁶⁾	Classified as current marketable securities.


⁽⁷⁾	Classified as other current assets.


⁽⁸⁾	Classified as accounts payable.