Annual report [Section 13 and 15(d), not S-K Item 405]

Fair Value

v3.25.4
Fair Value
 12 Months Ended
Dec. 27, 2025
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 27, 2025 December 28, 2024
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 $ —  $ 150  $ —  $ 150  $ — $ —  $ — $ — 
Financial institution instruments1
7,292  1,800  —  9,092  4,121  743  — 4,864 
Reverse repurchase agreements —  4,262  —  4,262  — 2,654  — 2,654 
Short-term investments:
Corporate debt —  7,248  —  7,248  — 5,365  — 5,365 
Financial institution instruments1
183  3,991  —  4,174  195  3,356  — 3,551 
Government debt2
5,296  6,433  —  11,729  33  4,864  — 4,897 
Other current assets:
Derivative assets 431  608  —  1,039  348  733  — 1,081 
Marketable equity investments
 484  —  —  484  848  —  — 848 
Other long-term assets:
Derivative assets —  2  —  2  — 1  —  1 
Total assets measured and recorded at fair value $ 13,686  $ 24,494  $ —  $ 38,180  $ 5,545  $ 17,716  $ —  $ 23,261 
Liabilities
Other accrued liabilities:
Derivative liabilities3
 $ 6  $ 1,524  $ 304  $ 1,834  $ — $ 562  $ 134 $ 696 
Other long-term liabilities:
Derivative liabilities3
 —  1,714  576  2,290  — 416  755 1,171 
Total liabilities measured and recorded at fair value $ 6  $ 3,238  $ 880  $ 4,124  $ — $ 978  $ 889 $ 1,867 
1 Level 1 investments consist of money market funds. Level 2 investments consist primarily of time deposits, notes and bonds issued by financial institutions.
2 Level 1 investments consist primarily of U.S. Treasury securities. Level 2 investments consist primarily of non-U.S. government debt.
3 Level 1 derivative liabilities consist of equity contracts for our deferred compensation program. Level 2 derivative liabilities include a forward contract related to Escrowed Shares held. 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 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.
Our non-recurring fair value measurements include the valuation of our non-marketable equity investment in Altera on the September 12, 2025 transaction close date, the fair value for which was measured and recorded using Level 3 inputs. See "Note 10: Acquisitions and Divestitures" within Notes to Consolidated Financial Statements for further information.
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 that have not been remeasured or impaired in the current period, grants receivable, issued debt and our outstanding receivable from SLP of $463 million which was measured and recorded using Level 2 inputs, as of December 27, 2025.
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 27, 2025 was $652 million (the aggregate carrying value of grants receivable as of December 28, 2024 was $1.7 billion).
We classify the fair value of issued debt (excluding commercial paper) as Level 2. The fair value of these instruments was $41.8 billion as of December 27, 2025 ($43.5 billion as of December 28, 2024).