Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.22.1
Fair Value
 3 Months Ended
Apr. 02, 2022
Fair Value Disclosures [Abstract]  
Fair Value
Note 9 : Fair Value
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Apr 2, 2022 Dec 25, 2021
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 $ —  $ 1,671  $ —  $ 1,671  $ —  $ 65  $ —  $ 65 
Financial institution instruments¹ 745  1,436  —  2,181  1,216  763  —  1,979 
Government debt² 200  —  —  200  —  —  —  — 
Reverse repurchase agreements —  1,695  —  1,695  —  1,595  —  1,595 
Short-term investments:
Corporate debt —  7,878  —  7,878  —  6,367  —  6,367 
Financial institution instruments¹ 114  7,003  —  7,117  154  5,162  —  5,316 
Government debt² 648  16,838  —  17,486  50  12,693  —  12,743 
Other current assets:
Derivative assets 88  892  —  980  80  576  —  656 
Loans receivable³ —  —  —  —  —  152  —  152 
Marketable equity securities4
1,694  70  —  1,764  1,854  317  —  2,171 
Other long-term assets:
Derivative assets —  194  —  194  — 772  7  779 
Loans receivable³ —  73  —  73  — 57  — 57 
Total assets measured and recorded at fair value $ 3,489  $ 37,750  $ —  $ 41,239  $ 3,354  $ 28,519  $ 7  $ 31,880 
Liabilities
Other accrued liabilities:
Derivative liabilities $ 17  $ 608  $ —  $ 625  $ 4  $ 516  $ —  $ 520 
Other long-term liabilities:
Derivative liabilities —  104  22  126  —  9  —  9 
Total liabilities measured and recorded at fair value $ 17  $ 712  $ 22  $ 751  $ 4  $ 525  $ —  $ 529 
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.
4    Level 2 investments consist of marketable equity securities subject to security-specific restrictions.
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, reverse repurchase agreements with original maturities greater than three months, and issued debt.
We classify the fair value of grants receivable and reverse repurchase agreements with original maturities greater than three months as Level 2. The estimated fair value of these financial instruments approximates their carrying value. The aggregate carrying value of grants receivable as of April 2, 2022 was $335 million (the aggregate carrying value as of December 25, 2021 was $317 million). The aggregate carrying value of reverse repurchase agreements with original maturities greater than three months as of April 2, 2022 was $400 million (the aggregate carrying value as of December 25, 2021 was $0).We classify the fair value of issued debt (excluding commercial paper, drafts payable, and finance leases) as Level 2. The fair value of our issued debt was $38.1 billion as of April 2, 2022 ($41.5 billion as of December 25, 2021).