Annual report pursuant to Section 13 and 15(d)

Fair Value

v3.20.4
Fair Value
 12 Months Ended
Dec. 26, 2020
Fair Value Disclosures [Abstract]  
Fair Value [Text Block]
Note 14 : Fair Value
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
December 26, 2020 December 28, 2019
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  — $ 50  $ —  $ 50  — $ 713  — $ 713 
Financial institution instruments1
2,781  636  —  3,417  1,064  408  — 1,472 
Reverse repurchase
agreements		  — 1,900   — 1,900  — 1,500  — 1,500 
Short-term investments:
Corporate debt  — 428   — 428  — 347  — 347 
Financial institution instruments1
 — 1,179   — 1,179  — 724  — 724 
Government debt2
 — 685   — 685  — 11  — 11 
Trading assets:
Corporate debt  — 3,815   — 3,815  — 2,848  — 2,848 
Financial institution instruments1
131  2,847   — 2,978  87  1,578  — 1,665 
Government debt2
—  8,945   — 8,945  — 3,334  — 3,334 
Other current assets:
Derivative assets 48  644  —  692  50  230  —  280 
Loans receivable3
 — 439   — 439  — —  — — 
Marketable equity securities 136  1,694  —  1,830  450  —  —  450 
Other long-term investments:
Corporate debt  — 1,520   — 1,520  — 1,898  — 1,898 
Financial institution instruments1
 — 257   — 257  — 825  — 825 
Government debt2
 — 415   — 415  — 553  — 553 
Other long-term assets:
Derivative assets —  1,520  30  1,550  —  690  16  706 
Loans receivable3
 — 157   — 157  — 554  — 554 
Total assets measured and recorded at fair value $ 3,096  $ 27,131  $ 30  $ 30,257  $ 1,651  $ 16,213  $ 16  $ 17,880 
Liabilities
Other accrued liabilities:
Derivative liabilities $ —  $ 810  $ —  $ 810  $ 3  $ 287  $ —  $ 290 
Other long-term liabilities:
Derivative liabilities —  5  —  5  —  13  —  13 
Total liabilities measured and recorded at fair value $ —  $ 815  $ —  $ 815  $ 3  $ 300  $ —  $ 303 
1Level 1 investments in financial institution instruments 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 in government debt consist primarily of U.S. agency notes and non-U.S. government debt, as well as marketable equity securities subject to security-specific restrictions.
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 impairment or observable price adjustment is recognized on our non-marketable equity securities during the period, we classify these assets as Level 3.
We classify non-marketable equity securities and non-marketable equity method investments as Level 3. Impairments recognized on these investments held as of December 26, 2020 were $272 million ($113 million held as of December 28, 2019 and $416 million held as of December 29, 2018).
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.
We classify the fair value of grants receivables as Level 2. The estimated fair value of these financial instruments approximates their carrying value. The aggregate carrying value of grants receivable as of December 26, 2020 was $139 million (the aggregate carrying value of grants receivable and reverse repurchase agreements with original maturities greater than three months as of December 28, 2019 was $543 million).
We classify the fair value of issued debt (excluding commercial paper and drafts payable) as Level 2. The fair value of these instruments was $40.9 billion as of December 26, 2020 ($30.6 billion as of December 28, 2019).