Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.20.2
Fair Value
 9 Months Ended
Sep. 26, 2020
Fair Value Disclosures [Abstract]  
Fair Value [Text Block]
NOTE 10 : FAIR VALUE
ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS
Sep 26, 2020 Dec 28, 2019
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 $ —  $ —  $ —  $ —  $ —  $ 713  $ —  $ 713 
Financial institution instruments¹ 1,012  467  —  1,479  1,064  408  —  1,472 
Government debt² —  50  —  50  —  —  —  — 
Reverse repurchase agreements —  1,250  —  1,250  —  1,500  —  1,500 
Short-term investments:
Corporate debt —  442  —  442  —  347  —  347 
Financial institution instruments¹ —  1,547  —  1,547  —  724  —  724 
Government debt² —  998  —  998  —  11  —  11 
Trading assets:
Corporate debt —  3,845  —  3,845  —  2,848  —  2,848 
Financial institution instruments¹ 220  2,670  —  2,890  87  1,578  —  1,665 
Government debt² —  5,175  —  5,175  —  3,334  —  3,334 
Other current assets:
Derivative assets 15  310  —  325  50  230  —  280 
Loans receivable³ —  361  —  361  —  —  —  — 
Marketable equity securities 357  124  —  481  450  —  —  450 
Other long-term investments:
Corporate debt —  1,727  —  1,727  —  1,898  —  1,898 
Financial institution instruments¹ —  425  —  425  —  825  —  825 
Government debt² —  568  —  568  —  553  —  553 
Other long-term assets:
Derivative assets —  1,648  31  1,679  —  690  16  706 
Loans receivable³ —  215  —  215  —  554  —  554 
Total assets measured and recorded at fair value $ 1,604  $ 21,822  $ 31  $ 23,457  $ 1,651  $ 16,213  $ 16  $ 17,880 
Liabilities
Other accrued liabilities:
Derivative liabilities $ 52  $ 556  $ —  $ 608  $ 3  $ 287  $ —  $ 290 
Other long-term liabilities:
Derivative liabilities —  26  —  26  —  13  —  13 
Total liabilities measured and recorded at fair value $ 52  $ 582  $ —  $ 634  $ 3  $ 300  $ —  $ 303 
1Level 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.
2Level 2 investments consist primarily of U.S. agency notes and non-U.S. government debt.
3The 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 and equity method investments that have not been remeasured or impaired in the current period, grants receivable, reverse repurchase agreements with original maturities greater than three months, and issued debt.
As of September 26, 2020, the aggregate carrying value of grants receivable and reverse repurchase agreements with original maturities greater than three months was $206 million ($543 million as of December 28, 2019). 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 26, 2020, the fair value of our issued debt was $41.0 billion ($30.6 billion as of December 28, 2019). These liabilities are classified as Level 2 within the fair value hierarchy based on the nature of the fair value inputs.