Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.19.3
Fair Value
9 Months Ended
Sep. 28, 2019
Fair Value Disclosures [Abstract]  
Fair Value [Text Block]
NOTE 10 :
FAIR VALUE
For information about our fair value policies, and methods and assumptions used in estimating the fair value of our financial assets and liabilities, see "Note 2: Accounting Policies" and "Note 16: Fair Value" in our 2018 Form 10-K.
ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS
 
 
September 28, 2019
 
December 29, 2018
 
 
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
 
$

 
$
329

 
$

 
$
329

 
$

 
$
262

 
$

 
$
262

Financial institution instruments¹
 
1,101

 
460

 

 
1,561

 
550

 
183

 

 
733

Reverse repurchase agreements
 

 
1,495

 

 
1,495

 

 
1,850

 

 
1,850

Short-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
828

 

 
828

 

 
937

 

 
937

Financial institution instruments¹
 

 
911

 

 
911

 

 
1,423

 

 
1,423

Government debt²
 

 
110

 

 
110

 

 
428

 

 
428

Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
2,921

 

 
2,921

 

 
2,635

 

 
2,635

Financial institution instruments¹
 
70

 
1,477

 

 
1,547

 
67

 
1,273

 

 
1,340

Government debt²
 

 
1,773

 

 
1,773

 

 
1,868

 

 
1,868

Other current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 
62

 
295

 

 
357

 

 
180

 

 
180

Loans receivable³
 

 
55

 

 
55

 

 
354

 

 
354

Marketable equity securities
 
352

 

 

 
352

 
1,440

 

 

 
1,440

Other long-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
1,900

 

 
1,900

 

 
1,843

 

 
1,843

Financial institution instruments¹
 

 
890

 

 
890

 

 
912

 

 
912

Government debt²
 

 
638

 

 
638

 

 
633

 

 
633

Other long-term assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 

 
933

 
23

 
956

 

 
100

 

 
100

Loans receivable³
 

 
494

 

 
494

 

 
229

 

 
229

Total assets measured and recorded at fair value
 
$
1,585

 
$
15,509

 
$
23

 
$
17,117

 
$
2,057

 
$
15,110

 
$

 
$
17,167

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other accrued liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
$

 
$
440

 
$

 
$
440

 
$

 
$
412

 
$

 
$
412

Other long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 

 
19

 

 
19

 

 
415

 
68

 
483

Total liabilities measured and recorded at fair value
 
$

 
$
459

 
$

 
$
459

 
$

 
$
827

 
$
68

 
$
895


1 
Level 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.
2 
Level 2 investments consist primarily of U.S. agency notes and non-U.S. 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 based on the contractual currency.
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 within the fair value hierarchy based on the nature of the fair value inputs.
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 (that have not been re-measured or impaired in the current period), equity method investments, grants receivable, loans receivable, reverse repurchase agreements, and our short-term and long-term debt.
As of September 28, 2019, the aggregate carrying value of grants receivable, loans receivable, and reverse repurchase agreements was $1.3 billion (the aggregate carrying amount as of December 29, 2018 was $833 million). The estimated fair value of these financial instruments approximates their carrying value and is categorized as Level 2 within the fair value hierarchy based on the nature of the fair value inputs.
As of September 28, 2019, the fair value of short and long-term debt (excluding drafts payable) was $30.3 billion (the fair value as of December 29, 2018 was $27.1 billion). These liabilities are classified as Level 2 within the fair value hierarchy based on the nature of the fair value inputs.