Annual report pursuant to Section 13 and 15(d)

Fair Value

v3.24.4
Fair Value
12 Months Ended
Dec. 28, 2024
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 28, 2024 December 30, 2023
Fair Value Measurements
Total
Fair Value Measurements
Total
(In Millions)
Level 1
Level 2
Level 3
Level 1 Level 2 Level 3
Assets
Cash equivalents:
Corporate debt $ —  $ —  $ —  $ —  $ $ 769  $ $ 769 
Financial institution instruments1
4,121  743  —  4,864  2,241  835  3,076 
Reverse repurchase agreements —  2,654  —  2,654  2,554  2,554 
Short-term investments:
Corporate debt —  5,365  —  5,365  6,951  6,951 
Financial institution instruments1
195  3,356  —  3,551  33  4,215  4,248 
Government debt2
33  4,864  —  4,897  —  6,756  6,756 
Other current assets:
Derivative assets 348  733  —  1,081  366 809  1,175 
Marketable equity securities 848  —  —  848  1,194  —  1,194 
Other long-term assets:
Derivative assets —  —  21  —  21 
Total assets measured and recorded at fair value $ 5,545  $ 17,716  $   $ 23,261  $ 3,834  $ 22,910  $   $ 26,744 
Liabilities
Other accrued liabilities:
Derivative liabilities $ —  $ 562  $ 134  $ 696  $ $ 541  $ 99 $ 640 
Other long-term liabilities:
Derivative liabilities3
—  416  755  1,171  479  479 
Total liabilities measured and recorded at fair value $   $ 978  $ 889  $ 1,867  $ $ 1,020  $ 99 $ 1,119 
1.Level 1 investments consist of money market funds. Level 2 investments consist primarily of certificates of deposit, commercial paper, time deposits, 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.Level 3 derivative liabilities include liquidated damage provisions related to our Ireland SCIP arrangement

Assets Measured and Recorded at Fair Value on a Non-Recurring Basis
Our non-marketable equity investments, equity method investments, and certain non-financial assets—such as intangible assets, goodwill, 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 investments during the period, we classify these assets as Level 3. Similarly, impairments recognized on our goodwill, intangible assets, and property, plant, and equipment are categorized as Level 3 within the fair value hierarchy, as we utilize unobservable inputs such as prospective financial information, market segment growth rates, and discount rates in the fair value measurement process.
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 investments and equity method investments that have not been remeasured or impaired in the current period, grants receivable, certain other receivables, and issued debt.
We classify the fair value of grants receivable as Level 2. The estimated fair value of these financial assets approximates their carrying value. The aggregate carrying value of grants receivable as of December 28, 2024 was $1.7 billion (the aggregate carrying value of grants receivable as of December 30, 2023 was $559 million).
We classify the fair value of issued debt (excluding commercial paper) as Level 2. The fair value of these instruments was $43.5 billion as of December 28, 2024 ($47.6 billion as of December 30, 2023).