Cash and Investments

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Cash and Investments	9 Months Ended
	Sep. 27, 2014
Cash and Investments [Abstract]
Cash And Investments [Text Block]	Note 4: Cash and Investments Cash and investments at the end of each period were as follows: (In Millions)   Sep 27, 2014   Dec 28, 2013 Available-for-sale investments   $ 14,417   $ 18,086 Cash   576   854 Equity method investments   1,491   1,038 Loans receivable   1,008   1,072 Non-marketable cost method investments   1,871   1,270 Reverse repurchase agreements   718   800 Trading assets   9,000   8,441 Total cash and investments   $ 29,081   $ 31,561 Available-for-Sale Investments Available-for-sale investments at the end of each period were as follows:     September 27, 2014   December 28, 2013 (In Millions)   Adjusted Cost   Gross Unrealized Gains   Gross Unrealized Losses   Fair Value   Adjusted Cost   Gross Unrealized Gains   Gross Unrealized Losses   Fair Value Asset-backed securities   $ 8   $ —   $ (1 )   $ 7   $ 11   $ —   $ (2 )   $ 9 Corporate debt   2,848   18   (3 )   2,863   4,254   15   (3 )   4,266 Financial institution instruments   3,976   6   —   3,982   5,654   5   (1 )   5,658 Government debt   1,052   —   (1 )   1,051   1,932   1   (1 )   1,932 Marketable equity securities   3,305   3,209   —   6,514   3,340   2,881   —   6,221 Total available-for-sale investments   $ 11,189   $ 3,233   $ (5 )   $ 14,417   $ 15,191   $ 2,902   $ (7 )   $ 18,086 Government debt includes instruments such as non-U.S. government bonds, U.S. agency securities, and U.S. Treasury securities. Financial institution instruments include instruments issued or managed by financial institutions in various forms such as commercial paper, fixed and floating rate bonds, money market fund deposits, and time deposits. Time deposits were primarily issued by institutions outside the U.S. as of September 27, 2014 and December 28, 2013. For information on the unrealized holding gains (losses) on available-for-sale investments reclassified out of accumulated other comprehensive income (loss) into the consolidated condensed statements of income, see "Note 21: Other Comprehensive Income (Loss)." During the third quarter of 2014, we sold available-for-sale investments for proceeds of $373 million, of which $82 million related to sales of cash and cash equivalents ($359 million in the third quarter of 2013, of which $93 million related to sales of cash and cash equivalents). During the first nine months of 2014, we sold available-for-sale investments for proceeds of $1.2 billion, of which $459 million related to sales of cash and cash equivalents ($1.2 billion in the first nine months of 2013 of which $339 million related to sales of cash and cash equivalents). Proceeds received in the third quarter of 2013 included $142 million from the sale of our shares in Clearwire Corporation, previously included as marketable equity securities in the preceding table. There were no gross realized gains on sales of available-for-sale investments recognized in the third quarter of 2014 and $136 million in the first nine months of 2014 ($134 million in the third quarter of 2013 and $143 million in the first nine months of 2013). Gross realized gains recognized in the third quarter of 2013 included $111 million on the sale of our shares in Clearwire Corporation. For further information, see "Note 18: Gains (Losses) on Equity Investments, Net." The amortized cost and fair value of available-for-sale debt investments, by contractual maturity, as of September 27, 2014, were as follows: (In Millions)   Cost        Fair Value Due in 1 year or less   $ 5,331   $ 5,350 Due in 1–2 years   1,197   1,198 Due in 2–5 years   922   923 Instruments not due at a single maturity date   434   432 Total   $ 7,884   $ 7,903 Equity Method Investments IM Flash Technologies, LLC Micron Technology, Inc. (Micron) and Intel formed IM Flash Technologies, LLC (IMFT) in 2007 to manufacture NAND flash memory products for Micron and Intel. During 2012, we amended the operating agreement for IMFT and entered into agreements with Micron that modified our joint venture relationship. The amended operating agreement extended the term of IMFT to 2024, unless earlier terminated under certain terms and conditions, and provides that IMFT may manufacture certain emerging memory technologies in addition to NAND flash memory. Additionally, the amended agreement provides for certain rights that, beginning in 2015, will enable us to sell to Micron, or enable Micron to purchase from us, our interest in IMFT. If Intel exercises this right, Micron would set the closing date of the transaction within two years following such election and could elect to receive financing from Intel for one to two years. The agreements with Micron include a supply agreement for Micron to supply us with NAND flash memory products. The agreements also extend and expand our NAND joint development program with Micron to include emerging memory technologies. As of September 27, 2014, we own a 49% interest in IMFT. The carrying value of our investment was $713 million as of September 27, 2014 ($646 million as of December 28, 2013) and is classified within other long-term assets. IMFT is a variable interest entity. All costs of the IMFT joint venture will be passed on to Micron and Intel pursuant to our purchase agreements. Intel's portion of IMFT costs, primarily related to product purchases and production-related services, was approximately $100 million in the third quarter of 2014 and approximately $305 million in the first nine months of 2014 (approximately $80 million in the third quarter of 2013 and approximately $280 million in the first nine months of 2013). The amount due to IMFT for product purchases and services provided was approximately $85 million as of September 27, 2014 (approximately $75 million as of December 28, 2013). IMFT depends on Micron and Intel for any additional cash needs. Our known maximum exposure to loss approximated the carrying value of our investment balance in IMFT, which was $713 million as of September 27, 2014. Except for the amount due to IMFT for product purchases and services, we did not have any additional liabilities recognized on our consolidated condensed balance sheets in connection with our interests in this joint venture as of September 27, 2014. Our potential future losses could be higher than the carrying amount of our investment, as Intel and Micron are liable for other future operating costs or obligations of IMFT. Future cash calls could also increase our investment balance and the related exposure to loss. In addition, because we are currently committed to purchasing 49% of IMFT’s production output and production-related services, we may be required to purchase products at a cost in excess of realizable value. We have determined that we do not have the characteristics of a consolidating investor in the variable interest entity and, therefore, we account for our interest in IMFT using the equity method of accounting. Cloudera, Inc. During the second quarter of 2014, we invested in Cloudera, Inc. (Cloudera). Our fully-diluted ownership interest in Cloudera is 18% as of September 27, 2014. Our investment is accounted for under the equity and cost methods of accounting and is classified within other long-term assets. As of September 27, 2014, the carrying value of our equity method investment was $280 million and of our cost method investment was $454 million. Trading Assets As of September 27, 2014 and December 28, 2013, all of our trading assets were marketable debt instruments. Net losses related to trading assets still held at the reporting date were $283 million in the third quarter of 2014 and net losses were $254 million in the first nine months of 2014 (net gains of $96 million in the third quarter of 2013 and $43 million in the first nine months of 2013). Net gains on the related derivatives were $278 million in the third quarter of 2014 and net gains of $252 million in the first nine months of 2014 (net losses of $97 million in the third quarter of 2013 and $40 million in the first nine months of 2013).