Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value

Fair Value

3 Months Ended

Apr. 01, 2023


Note 10 :			Fair Value

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis


	Apr 1, 2023								Dec 31, 2022
	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	$	—	$	1,395	$	—	$	1,395	$	—	$	856	$	—	$	856
Financial institution instruments¹	1,806		2,177		—		3,983		6,899		1,474		—		8,373
Government debt²	233		297		—		530		—		—		—		—
Reverse repurchase agreements	—		1,700		—		1,700		—		1,301		—		1,301
Short-term investments:
Corporate debt	—		5,441		—		5,441		—		5,381		—		5,381
Financial institution instruments¹	141		5,019		—		5,160		196		4,729		—		4,925
Government debt²	49		8,652		—		8,701		48		6,840		—		6,888
Other current assets:
Derivative assets	78		959		—		1,037		—		1,264		—		1,264
Loans receivable³	—		54		—		54		—		53		—		53
Marketable equity securities	1,421		—		—		1,421		1,341		—		—		1,341
Other long-term assets:
Derivative assets	—		5		—		5		—		10		—		10

Total assets measured and recorded at fair value	$	3,728	$	25,699	$	—	$	29,427	$	8,484	$	21,908	$	—	$	30,392
Liabilities
Other accrued liabilities:
Derivative liabilities	$	8	$	350	$	81	$	439	$	111	$	485	$	89	$	685

Other long-term liabilities:
Derivative liabilities	—		515		—		515		—		699		—		699
Total liabilities measured and recorded at fair value	$	8	$	865	$	81	$	954	$	111	$	1,184	$	89	$	1,384

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 1 investments consist primarily of US Treasury securities. Level 2 investments consist primarily of non-US 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.

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.

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 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 April 1, 2023 was $459 million (the aggregate carrying value as of December 31, 2022 was $437 million). The aggregate carrying value of reverse repurchase agreements with original maturities greater than three months as of April 1, 2023 was $0 million (the aggregate carrying value as of December 31, 2022 was $400 million).We classify the fair value of issued debt (excluding any commercial paper) as Level 2. The fair value of our issued debt was $45.9 billion as of April 1, 2023 ($34.3 billion as of December 31, 2022).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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