Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.20.2
Investments
9 Months Ended
Sep. 26, 2020
Investments and Cash [Abstract]  
Investments [Text Block]
NOTE 7 : INVESTMENTS
DEBT INVESTMENTS
Trading Assets
Net gains recorded for trading assets still held at the reporting date were $205 million in the third quarter of 2020 and $347 million in the first nine months of 2020 ($75 million of net losses in the third quarter of 2019 and $21 million of net gains in the first nine months of 2019). Net losses on the related derivatives were $163 million in the third quarter of 2020 and $334 million in the first nine months of 2020 ($81 million of net gains in the third quarter of 2019 and $7 million of net losses in the first nine months of 2019).
Available-for-Sale Debt Investments
Sep 26, 2020 Dec 28, 2019
(In Millions)
Adjusted Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Adjusted Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Corporate debt $ 2,077  $ 92  $ —  $ 2,169  $ 2,914  $ 44  $ —  $ 2,958 
Financial institution
instruments
3,431  20  —  3,451  3,007  15  (1) 3,021 
Government debt 1,604  12  —  1,616  560  —  564 
Total available-for-sale
     debt investments
$ 7,112  $ 124  $   $ 7,236  $ 6,481  $ 63  $ (1) $ 6,543 
Government debt includes instruments such as non-U.S. government bonds and U.S. agency securities. Financial institution instruments include instruments issued or managed by financial institutions in various forms such as commercial paper, fixed and floating rate bonds, money market fund deposits, and time deposits. Substantially all time deposits were issued by institutions outside the U.S. as of September 26, 2020 and December 28, 2019.
The fair value of available-for-sale debt investments, by contractual maturity, as of September 26, 2020, was as follows:
(In Millions)
Fair Value
Due in 1 year or less
$ 3,504 
Due in 1–2 years
1,450 
Due in 2–5 years
1,270 
Due after 5 years
— 
Instruments not due at a single maturity date
1,012 
Total
$ 7,236 
EQUITY INVESTMENTS
(In Millions)
Sep 26, 2020 Dec 28, 2019
Marketable equity securities
$ 481  $ 450 
Non-marketable equity securities
3,189  3,480 
Equity method investments
37 
Total
$ 3,679 

$ 3,967 
The components of gains (losses) on equity investments, net for each period were as follows:
 
Three Months Ended Nine Months Ended
(In Millions)
Sep 26, 2020 Sep 28, 2019 Sep 26, 2020 Sep 28, 2019
Ongoing mark-to-market adjustments on marketable equity
     securities
$ (146) $ 114  $ (84) $ 188 
Observable price adjustments on non-marketable equity securities
84  142  100 
Impairment charges
(40) (17) (233) (79)
Sale of equity investments and other¹ 237  137  387  713 
Total gains (losses) on equity investments, net
$ 56  $ 318  $ 212  $ 922 
1 Sale of equity investments and other includes realized gains (losses) on sales of non-marketable equity investments, our share of equity method investee gains (losses) and distributions, and initial fair value adjustments recorded upon a security becoming marketable.
We recognized higher than historically experienced impairment charges on our non-marketable portfolio in the first nine months of 2020 based on our assessment of the impact of recent public and private market volatility and tightening of liquidity.
Gains and losses for our marketable and non-marketable equity securities during the period were as follows:
Three Months Ended Nine Months Ended
(In Millions)
Sep 26, 2020 Sep 28, 2019 Sep 26, 2020 Sep 28, 2019
Net gains (losses) recognized during the period on equity securities
$ 19  $ 281  $ 102  $ 366 
Less: Net (gains) losses recognized during the period on equity
     securities sold during the period
(12) (54) (87) (321)
Unrealized gains (losses) recognized during the reporting
     period on equity securities still held at the reporting date
$ 7  $ 227  $ 15  $ 45 
IMFT
IMFT was formed in 2006 by Micron Technology, Inc. (Micron) and Intel to jointly develop NAND flash memory and 3D XPoint™ technology products. As of September 28, 2019, we had a carrying value of $1.1 billion in IMFT and owned a 49% interest in the unconsolidated variable interest entity. We sold our non-controlling interest in IMFT to Micron in October 2019. We will continue to purchase product manufactured by Micron under our supply agreement, which includes the next generation of 3D XPoint™ technology.