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Fair Value Measurements (Tables)
12 Months Ended
Jan. 01, 2017
Fair Value Disclosures [Abstract]  
Summary of Designated Derivatives
The following table is a summary of the activity related to derivatives designated as cash flow hedges for the fiscal years ended January 1, 2017 and January 3, 2016:

(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
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Sales to customers (3)
 
$
(65
)
 
(83
)
 
(47
)
 
(126
)
 
(1
)
 
(5
)
Cost of products sold (3)
 
(212
)
 
(22
)
 
(3
)
 
122

 
(15
)
 
14

Research and development expense (3)
 
(76
)
 
(3
)
 
(90
)
 
6

 

 
1

Interest (income)/Interest expense, net (4)
 
66

 
(40
)
 
37

 

 

 

Other (income) expense, net (3) (5)
 
(72
)
 
33

 
(7
)
 
60

 
2

 
1

Total
 
$
(359
)
 
(115
)
 
(110
)
 
62

 
(14
)
 
11

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  
(5) 
Includes equity collar contracts
Financial Assets and Liabilities at Fair Value
The Company’s significant financial assets and liabilities measured at fair value as of January 1, 2017 and January 3, 2016 were as follows:
 
 
2016
 
2015
(Dollars in Millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total (1)
Derivatives designated as hedging instruments:
 
 

 
 

 
 

 
 

 
 

Assets:
 
 

 
 

 
 

 
 

 
 

Forward foreign exchange contracts (7)
 
$

 
747

 

 
747

 
452

Interest rate contracts (2)(4)(7)
 

 
31

 

 
31

 
28

Total
 

 
778

 

 
778

 
480

Liabilities:
 
 

 
 

 
 

 
 

 
 

Forward foreign exchange contracts (8)
 

 
723

 

 
723

 
358

Interest rate contracts (3)(4)(8)
 

 
382

 

 
382

 
241

Equity collar contracts(8)
 

 
57

 

 
57

 

Total
 

 
1,162

 

 
1,162

 
599

Derivatives not designated as hedging instruments:
 
 

 
 

 
 

 
 

 
 

Assets:
 
 

 
 

 
 

 
 

 
 

Forward foreign exchange contracts (7)
 

 
34

 

 
34

 
33

Liabilities:
 
 

 
 

 
 

 
 

 
 

Forward foreign exchange contracts (8)
 

 
57

 

 
57

 
41

Available For Sale Other Investments:
 
 
 
 
 
 
 
 
 
 
Equity investments(5)
 
1,209

 

 

 
1,209

 
1,494

Debt securities(6)
 
$

 
12,087

 

 
12,087

 
8,316



(1) 
2015 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,494 million, which are classified as Level 1.
(2) 
Includes $23 million and $20 million of non-current assets for the fiscal years ending January 1, 2017 and January 3, 2016, respectively.
(3) 
Includes $382 million and $239 million of non-current liabilities for the fiscal years ending January 1, 2017 and January 3, 2016, respectively.
(4) 
Includes cross currency interest rate swaps and interest rate swaps.
(5) 
Classified as non-current other assets with the exception of $332 million of current assets for January 1, 2017. The carrying amount of the equity investments were $520 million and $528 million as of January 1, 2017 and January 3, 2016, respectively. The unrealized gains were $757 million and $979 million as of January 1, 2017 and January 3, 2016, respectively. The unrealized losses were $68 million and $13 million as of January 1, 2017 and January 3, 2016, respectively.
(6) 
Classified as current marketable securities.
(7) 
Classified as other current assets.
(8) 
Classified as accounts payable.