Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value

Fair Value

9 Months Ended

Sep. 29, 2018

NOTE 12: FAIR VALUE

For information about our fair value policies, and methods and assumptions used in estimating the fair value of our financial assets and liabilities, see "Note 2: Accounting Policies" and "Note 15: Fair Value" in our 2017 Form 10-K.

ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS



	September 29, 2018								December 30, 2017
	Fair Value Measured and Recorded at Reporting Date Using								Fair Value Measured and Recorded at Reporting Date Using
(In Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Corporate debt	$	—	$	179	$	—	$	179	$	—	$	30	$	—	$	30
Financial institution instruments ¹	478		318		—		796		335		640		—		975
Government debt ²	—		—		—		—		—		90		—		90
Reverse repurchase agreements	—		1,949		—		1,949		—		1,399		—		1,399
Short-term investments:
Corporate debt	—		573		—		573		—		672		3		675
Financial institution instruments ¹	—		1,740		—		1,740		—		1,009		—		1,009
Government debt ²	—		328		—		328		—		130		—		130
Trading assets:
Asset-backed securities	—		—		—		—		—		2		—		2
Corporate debt	—		2,562		—		2,562		—		2,842		—		2,842
Financial institution instruments ¹	29		1,299		—		1,328		59		1,064		—		1,123
Government debt ²	28		3,220		—		3,248		30		4,758		—		4,788
Other current assets:
Derivative assets	—		150		—		150		—		279		—		279
Loans receivable ³	—		304		—		304		—		30		—		30
Marketable equity securities	3,039		—		—		3,039		4,148		44		—		4,192
Other long-term investments:
Corporate debt	—		1,868		—		1,868		—		1,576		4		1,580
Financial institution instruments ¹	—		1,096		—		1,096		—		1,397		—		1,397
Government debt ²	—		598		—		598		—		735		—		735
Other long-term assets:
Derivative assets	—		47		—		47		—		77		7		84
Loans receivable ³	—		294		—		294		—		610		—		610
Total assets measured and recorded at fair value	3,574		16,525		—		20,099		4,572		17,384		14		21,970
Liabilities
Other accrued liabilities:
Derivative liabilities	—		464		—		464		—		454		—		454
Other long-term liabilities:
Derivative liabilities	—		761		106		867		—		297		6		303
Total liabilities measured and recorded at fair value	$	—	$	1,225	$	106	$	1,331	$	—	$	751	$	6	$	757


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.


³	The fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance based on the contractual currency.

ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS

Our non-marketable equity securities, equity method investments, and certain non-financial assets, such as intangible assets and property, plant and equipment, are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized on our non-marketable equity securities during the period, we classify these assets as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.

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 equity securities (that have not been re-measured or impaired in the current period), equity method investments, grants receivable, loans receivable, reverse repurchase agreements and our short-term and long-term debt.

Prior to the adoption of the new financial instrument standard, our non-marketable cost method investments were disclosed at fair value on a recurring basis and the carrying amount and fair value as of December 30, 2017 was $2.6 billion and $3.6 billion, respectively. These assets were classified as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.

As of September 29, 2018, the aggregate carrying value of grants receivable, loans receivable, and reverse repurchase agreements was $1.1 billion (the aggregate carrying amount as of December 30, 2017 was $935 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.

As of September 29, 2018, the fair value of short and long-term debt (excluding drafts payable) was $29.3 billion (the fair value as of December 30, 2017 was $29.4 billion). These liabilities are classified as Level 2 within the fair value hierarchy based on the nature of the fair value inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details