Annual report pursuant to Section 13 and 15(d)

Fair Value

v3.22.4
Fair Value
 12 Months Ended
Dec. 31, 2022
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 31, 2022 December 25, 2021
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 $ —  $ 856  $ —  $ 856  $ — $ 65  $ — $ 65 
Financial institution instruments1
6,899  1,474  —  8,373  1,216  763  — 1,979 
Reverse repurchase
    agreements		 —  1,301  —  1,301  — 1,595  — 1,595 
Short-term investments:
Corporate debt —  5,381  —  5,381  — 6,367  — 6,367 
Financial institution instruments1
196  4,729  —  4,925  154  5,162  — 5,316 
Government debt2
48  6,840  —  6,888  50  12,693  — 12,743 
Other current assets:
Derivative assets —  1,264  —  1,264  80  576  — 656 
Loans receivable3
—  53  —  53  — 152  — 152 
Marketable equity securities4
1,341  —  —  1,341  1,854  317  — 2,171 
Other long-term assets:
Derivative assets —  10  —  10  — 772  7  779 
Loans receivable3
—  —  —  —  — 57  — 57 
Total assets measured and recorded at fair value $ 8,484  $ 21,908  $ —  $ 30,392  $ 3,354  $ 28,519  $ 7  $ 31,880 
Liabilities
Other accrued liabilities:
Derivative liabilities $ 111  $ 485  $ 89  $ 685  $ 4 $ 516  $ — $ 520 
Other long-term liabilities:
Derivative liabilities —  699  —  699  — 9  — 9 
Total liabilities measured and recorded at fair value $ 111  $ 1,184  $ 89  $ 1,384  $ 4 $ 525  $ — $ 529 
1.Level 1 investments consist of money market funds recorded at Net Asset Value. 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 US Treasury securities. Level 2 investments consist primarily of non-US 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.
4.Level 2 investments consist of marketable equity securities subject to security-specific restrictions for which a fair value adjustment was recorded.

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 31, 2022 were $179 million ($138 million on investments held as of December 25, 2021).
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, and issued debt.
We classify the fair value of grants receivable and reverse repurchase agreements with original maturities greater than three months 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 31, 2022 was $437 million (the aggregate carrying value of grants receivable as of December 25, 2021 was $317 million). The aggregate carrying value of reverse repurchase agreements with original maturities greater than three months as of December 31, 2022 was $400 million (the aggregate carrying value as of December 25, 2021 was $0 million).
We classify the fair value of issued debt (excluding commercial paper) as Level 2. The fair value of these instruments was $34.3 billion as of December 31, 2022 ($41.5 billion as of December 25, 2021).