Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.21.2
Fair Value
9 Months Ended
Sep. 25, 2021
Fair Value Disclosures [Abstract]  
Fair Value
Note 10 : Fair Value
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Sep 25, 2021 Dec 26, 2020
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 $ —  $ 736  $ —  $ 736  $ —  $ 50  $ —  $ 50 
Financial institution instruments¹ 2,035  718  —  2,753  2,781  636  —  3,417 
Government debt² 2,200  164  —  2,364  —  —  —  — 
Reverse repurchase agreements —  1,350  —  1,350  —  1,900  —  1,900 
Short-term investments:
Corporate debt —  870  —  870  —  428  —  428 
Financial institution instruments¹ —  2,066  —  2,066  —  1,179  —  1,179 
Government debt² —  1,068  —  1,068  —  685  —  685 
Trading assets:
Corporate debt —  5,121  —  5,121  —  3,815  —  3,815 
Financial institution instruments¹ 67  4,014  —  4,081  131  2,847  —  2,978 
Government debt² —  13,559  —  13,559  —  8,945  —  8,945 
Other current assets:
Derivative assets 323  —  327  48  644  —  692 
Loans receivable³ —  211  —  211  —  439  —  439 
Marketable equity securities 272  1,792  —  2,064  136  1,694  —  1,830 
Other long-term investments:
Corporate debt —  684  —  684   — 1,520   — 1,520 
Financial institution instruments¹ —  203  —  203   — 257   — 257 
Government debt² —  66  —  66   — 415   — 415 
Other long-term assets:
Derivative assets —  961  13  974  1,520  30  1,550 
Loans receivable³ —  —  —  —  157  157 
Total assets measured and recorded at fair value $ 4,578  $ 33,906  $ 13  $ 38,497  $ 3,096  $ 27,131  $ 30  $ 30,257 
Liabilities
Other accrued liabilities:
Derivative liabilities $ 29  $ 527  $ —  $ 556  $ —  $ 810  $ —  $ 810 
Other long-term liabilities:
Derivative liabilities —  —  —  — 
Total liabilities measured and recorded at fair value $ 29  $ 536  $   $ 565  $   $ 815  $   $ 815 
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 U.S. Treasury securities. Level 2 investments consist primarily of U.S. agency notes and non-U.S. 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, and issued debt.
We classify the fair value of grants receivable as Level 2. The estimated fair value of these financial instruments approximates their carrying value. The aggregate carrying value of grants receivable as of September 25, 2021 was $399 million (the aggregate carrying value of grants receivable as of December 26, 2020 was $139 million).
We classify the fair value of issued debt (excluding commercial paper and drafts payable) as Level 2. The fair value of these instruments was $44.6 billion as of September 25, 2021 ($40.9 billion as of December 26, 2020).