Annual report pursuant to Section 13 and 15(d)

Fair Value

v3.8.0.1
Fair Value
12 Months Ended
Dec. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value [Text Block]
Note 15: Fair Value
ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS
 
 
December 30, 2017
 
December 31, 2016
 
 
Fair Value Measured and
Recorded at Reporting Date Using
 
Total
 
Fair Value Measured and
Recorded at Reporting Date Using
 
Total
(In Millions)
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 
$

 
$
30

 
$

 
$
30

 
$

 
$
498

 
$

 
$
498

Financial institution instruments 1
 
335

 
640

 

 
975

 
1,920

 
811

 

 
2,731

Government debt 2
 

 
90

 

 
90

 

 
332

 

 
332

Reverse repurchase agreements
 

 
1,399

 

 
1,399

 

 
768

 

 
768

Short-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
672

 
3

 
675

 

 
1,332

 
6

 
1,338

Financial institution instruments 1
 

 
1,009

 

 
1,009

 

 
1,603

 

 
1,603

Government debt 2
 

 
130

 

 
130

 

 
284

 

 
284

Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
 

 
2

 

 
2

 

 
87

 

 
87

Corporate debt
 

 
2,842

 

 
2,842

 

 
2,847

 

 
2,847

Financial institution instruments 1
 
59

 
1,064

 

 
1,123

 
36

 
1,608

 

 
1,644

Government debt 2
 
30

 
4,758

 

 
4,788

 
32

 
3,704

 

 
3,736

Other current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 
2

 
277

 

 
279

 

 
382

 

 
382

Loans receivable
 

 
30

 

 
30

 

 
326

 

 
326

Marketable equity securities
 
4,148

 
44

 

 
4,192

 
6,180

 

 

 
6,180

Other long-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
1,576

 
4

 
1,580

 

 
1,995

 
6

 
2,001

Financial institution instruments 1
 

 
1,397

 

 
1,397

 

 
1,758

 

 
1,758

Government debt 2
 

 
735

 

 
735

 

 
957

 

 
957

Other long-term assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 

 
77

 
7

 
84

 

 
31

 
9

 
40

Loans receivable
 

 
610

 

 
610

 

 
236

 

 
236

Total assets measured and recorded at fair value
 
4,574

 
17,382

 
14

 
21,970

 
8,168

 
19,559

 
21

 
27,748

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other accrued liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 

 
454

 

 
454

 

 
371

 

 
371

Other long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 

 
297

 
6

 
303

 

 
179

 
33

 
212

Total liabilities measured and recorded at fair value
 
$

 
$
751

 
$
6

 
$
757

 
$

 
$
550

 
$
33

 
$
583


1 
Level 1 investments consist of money market funds. Level 2 investments consist primarily of commercial paper, certificates of deposit, time deposits, and notes and bonds issued by financial institutions.
2 
Level 1 investments consist primarily of U.S. Treasury securities. Level 2 investments consist primarily of U.S. Agency notes and non-U.S. government debt.
In the second quarter of 2017, we began assigning fair value hierarchy levels based on the underlying instrument type for our fixed-income portfolio. We have reclassified prior period amounts to conform to the current period presentation.
FAIR VALUE OPTION FOR LOANS RECEIVABLE
The fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance as of December 30, 2017 and December 31, 2016.
ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS
Our non-marketable equity investments, marketable equity method investments, and non-financial assets—such as intangible assets and property, plant and equipment—are recorded at fair value only if an impairment is recognized.
We classified non-marketable equity investments as Level 3. Impairments recognized on non-marketable equity investments held as of December 30, 2017 were $537 million ($153 million held as of December 31, 2016 and $160 million held as of December 26, 2015).
FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE ON A RECURRING BASIS
Financial instruments not recorded at fair value on a recurring basis include non-marketable cost method investments, grants receivable, loans receivable, reverse repurchase agreements, and our short-term and long-term debt.
As of December 30, 2017, the carrying amount and fair value of our non-marketable cost method investments was $2.6 billion and $3.6 billion, respectively ($3.1 billion and $3.9 billion as of December 31, 2016, respectively). These measures are classified as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.
As of December 30, 2017, the aggregate carrying value of grants receivable, loans receivable, and reverse repurchase agreements was $935 million (the aggregate carrying amount as of December 31, 2016 was $876 million). The estimated fair value of these financial instruments approximates their carrying value and is categorized as Level 2 within the fair value hierarchy based on the nature of the fair value inputs.
For information related to the fair value of our short-term and long-term debt, see "Note 14: Borrowings."