Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.23.2
Fair Value
 6 Months Ended
Jul. 01, 2023
Fair Value Disclosures [Abstract]  
Fair Value
Note 11 : Fair Value
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Jul 1, 2023 Dec 31, 2022
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 $ —  $ 1,077  $ —  $ 1,077  $ —  $ 856  $ —  $ 856 
Financial institution instruments¹ 3,046  1,587  —  4,633  6,899  1,474  —  8,373 
Reverse repurchase agreements —  1,700  —  1,700  —  1,301  —  1,301 
Short-term investments:
Corporate debt —  6,158  —  6,158  —  5,381  —  5,381 
Financial institution instruments¹ 96  3,731  —  3,827  196  4,729  —  4,925 
Government debt² 49  5,874  —  5,923  48  6,840  —  6,888 
Other current assets:
Derivative assets 197  963  —  1,160  —  1,264  —  1,264 
Loans receivable —  55  —  55  —  53  —  53 
Marketable equity securities 1,295  —  —  1,295  1,341  —  —  1,341 
Other long-term assets:
Derivative assets —  5  —  5  —  10  —  10 
Total assets measured and recorded at fair value $ 4,683  $ 21,150  $ —  $ 25,833  $ 8,484  $ 21,908  $ —  $ 30,392 
Liabilities
Other accrued liabilities:
Derivative liabilities $ —  $ 446  $ 101  $ 547  $ 111  $ 485  $ 89  $ 685 
Other long-term liabilities:
Derivative liabilities —  722  —  722  —  699  —  699 
Total liabilities measured and recorded at fair value $ —  $ 1,168  $ 101  $ 1,269  $ 111  $ 1,184  $ 89  $ 1,384 
1Level 1 investments consist of money market funds. Level 2 investments consist primarily of certificates of deposit, time deposits, and notes and bonds issued by financial institutions.
2Level 1 investments consist primarily of US Treasury securities. Level 2 investments consist primarily of non-US government debt.

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 July 1, 2023 was $512 million (the aggregate carrying value as of December 31, 2022 was $437 million). We have no reverse repurchase agreements as of July 1, 2023 (the aggregate carrying value as of December 31, 2022 was $400 million).
We classify the fair value of issued debt (excluding any commercial paper) as Level 2. The fair value of our issued debt was $45.4 billion as of July 1, 2023 ($34.3 billion as of December 31, 2022).