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Table of Contents
for additional information on the fair value measurements for all financial assets and liabilities, including derivative assets and derivative
liabilities, that are measured at fair value in the consolidated financial statements on a recurring basis. The following tables shows the
Company’
s derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets as of September 26, 2009 and
September 27, 2008 (in millions):
The following table shows the effect of the Company’
s derivative instruments designated as cash flow and net investment hedges in the
Consolidated Statements of Operations for the year ended September 26, 2009 (in millions):
70
September 26, 2009
Fair Value of
Derivatives
Designated as
Hedge Instruments
Fair Value of
Derivatives Not
Designated as Hedge
Instruments
Total Fair Value
Derivative assets (a):
Foreign exchange contracts
$
27
$
10
$
37
Derivative liabilities (b):
Foreign exchange contracts
$
24
$
1
$
25
September 27, 2008
Fair Value of
Derivatives
Designated as
Hedge Instruments
Fair Value of
Derivatives Not
Designated as Hedge
Instruments
Total Fair Value
Derivative assets (a):
Foreign exchange contracts
$
107
$
8
$
115
Derivative liabilities (b):
Foreign exchange contracts
$
68
$
2
$
70
(a)
All derivative assets are recorded as other current assets in the Consolidated Balance Sheets.
(b)
All derivative liabilities are recorded as accrued expenses in the Consolidated Balance Sheets.
Year Ended September 26, 2009
Gain or (Loss)
Recognized in
AOCI -
Effective
Portion (a)
Location of Gain
or (Loss)
Reclassified
from AOCI into
Income -
Effective Portion
Gain or (Loss)
Reclassified
from
AOCI into
Income -
Effective
Portion
(a)
Location of Gain
or (Loss)
Recognized -
Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing
Gain or (Loss)
Recognized -
Ineffective Portion
and Amount
Excluded from
Effectiveness
Testing
Cash flow hedges:
Foreign exchange contracts
$
283
Net sales
$
251
Other income and
expense
$
(83
)
Foreign exchange contracts
55
Cost of sales
72
Other income
and expense
(14
)
Net investment hedges:
Foreign exchange contracts
(44
)
Other income
and expense
—
Other income
and expense
3
Total
$
294
$
323
$
(94
)
(a) Refer to Note 7, “Shareholders’ Equity and Stock-Based Compensation” of this Form 10-
K, which summarizes the activity in accumulated
other comprehensive income related to derivatives.