Annual report pursuant to Section 13 and 15(d)

Fair Value

v3.10.0.1
Fair Value
12 Months Ended
Dec. 29, 2018
Fair Value Disclosures [Abstract]  
Fair Value [Text Block]

ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS
 
 
December 29, 2018
 
December 30, 2017
 
 
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
 
$

 
$
262

 
$

 
$
262

 
$

 
$
30

 
$

 
$
30

Financial institution instruments 1
 
550

 
183

 

 
733

 
335

 
640

 

 
975

Government debt 2
 

 

 

 

 

 
90

 

 
90

Reverse repurchase agreements
 

 
1,850

 

 
1,850

 

 
1,399

 

 
1,399

Short-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
937

 

 
937

 

 
672

 
3

 
675

Financial institution instruments 1
 

 
1,423

 

 
1,423

 

 
1,009

 

 
1,009

Government debt 2
 

 
428

 

 
428

 

 
130

 

 
130

Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
 

 

 

 

 

 
2

 

 
2

Corporate debt
 

 
2,635

 

 
2,635

 

 
2,842

 

 
2,842

Financial institution instruments 1
 
67

 
1,273

 

 
1,340

 
59

 
1,064

 

 
1,123

Government debt 2
 

 
1,868

 

 
1,868

 
30

 
4,758

 

 
4,788

Other current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 

 
180

 

 
180

 

 
279

 

 
279

Loans receivable
 

 
354

 

 
354

 

 
30

 

 
30

Marketable equity securities
 
1,440

 

 

 
1,440

 
4,148

 
44

 

 
4,192

Other long-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
1,843

 

 
1,843

 

 
1,576

 
4

 
1,580

Financial institution instruments 1
 

 
912

 

 
912

 

 
1,397

 

 
1,397

Government debt 2
 

 
633

 

 
633

 

 
735

 

 
735

Other long-term assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 

 
100

 

 
100

 

 
77

 
7

 
84

Loans receivable
 

 
229

 

 
229

 

 
610

 

 
610

Total assets measured and recorded at fair value
 
$
2,057

 
$
15,110

 
$

 
$
17,167

 
$
4,572

 
$
17,384

 
$
14

 
$
21,970

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other accrued liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
$

 
$
412

 
$

 
$
412

 
$

 
$
454

 
$

 
$
454

Other long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 

 
415

 
68

 
483

 

 
297

 
6

 
303

Total liabilities measured and recorded at fair value
 
$

 
$
827

 
$
68

 
$
895

 
$

 
$
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.

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 impairment or observable price adjustment 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.
We classified non-marketable equity securities and non-marketable equity method investments as Level 3. Impairments recognized on these investments held as of December 29, 2018 were $416 million ($537 million held as of December 30, 2017 and $153 million held as of December 31, 2016).
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 and equity method investments that have not been remeasured or impaired in the current period, 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. The carrying amount and fair value of our non-marketable cost method investments as of December 30, 2017 were $2.6 billion and $3.6 billion, 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 29, 2018, the aggregate carrying value of grants receivable, loans receivable, and reverse repurchase agreements was $833 million (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.
For information related to the fair value of our short-term and long-term debt, see "Note 15: Borrowings."