Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.20.1
Investments
 3 Months Ended
Mar. 28, 2020
Investments and Cash [Abstract]  
Investments [Text Block]
NOTE 7 :
INVESTMENTS

DEBT INVESTMENTS
Trading Assets
Net losses related to trading assets still held at the reporting date were $231 million in the first three months of 2020 ($16 million of net gains in the first three months of 2019). Net gains on the related derivatives were $100 million in the first three months of 2020 ($2 million of net gains in the first three months of 2019).
Available-for-Sale Debt Investments
 
 
March 28, 2020
 
December 28, 2019
(In Millions)
 
Adjusted Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
Adjusted Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
Corporate debt
 
$
3,656

 
$
46

 
$
(9
)
 
$
3,693

 
$
2,914

 
$
44

 
$
—

 
$
2,958

Financial institution
instruments
 
9,482

 
12

 
(2
)
 
9,492

 
3,007

 
15

 
(1
)
 
3,021

Government debt
 
748

 
11

 
(1
)
 
758

 
560

 
4

 
—

 
564

Total available-for-sale debt investments
 
$
13,886

 
$
69

 
$
(12
)
 
$
13,943

 
$
6,481

 
$
63

 
$
(1
)
 
$
6,543


Government debt includes instruments such as non-U.S. government bonds and U.S. agency 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. Substantially all time deposits were issued by institutions outside the U.S. as of March 28, 2020 and December 28, 2019.
The fair value of available-for-sale debt investments, by contractual maturity, as of March 28, 2020, was as follows:
(In Millions)
 
Fair Value
Due in 1 year or less
 
$
3,443

Due in 1–2 years
 
1,589

Due in 2–5 years
 
1,354

Due after 5 years
 
—

Instruments not due at a single maturity date
 
7,557

Total
 
$
13,943


EQUITY INVESTMENTS
(In Millions)
 
Mar 28,
2020
 
Dec 28,
2019
Marketable equity securities
 
$
330

 
$
450

Non-marketable equity securities
 
3,522

 
3,480

Equity method investments
 
28

 
37

Total
 
$
3,880


$
3,967


We recognized $143 million of impairment charges on our non-marketable portfolio in the first three months of 2020 based on our assessment of the impact of recent public and private market volatility and tightening of liquidity.
The components of gains (losses) on equity investments, net for each period were as follows:
 
 
Three Months Ended
(In Millions)
 
Mar 28,
2020
 
Mar 30,
2019
Ongoing mark-to-market adjustments on marketable equity securities
 
$
(103
)
 
$
253

Observable price adjustments on non-marketable equity securities
 
79

 
8

Impairment charges
 
(143
)
 
(23
)
Sale of equity investments and other¹
 
56

 
196

Total gains (losses) on equity investments, net
 
$
(111
)
 
$
434


1 Sale of equity investments and other includes realized gains (losses) on sales of non-marketable equity investments, our share of equity method investee gains (losses) and distributions, and initial fair value adjustments recorded upon a security becoming marketable.
Gains and losses for our marketable and non-marketable equity securities during the period were as follows:
 
 
Three Months Ended
(In Millions)
 
Mar 28,
2020
 
Mar 30,
2019
Net gains (losses) recognized during the period on equity securities
 
$
(140
)
 
$
263

Less: Net (gains) losses recognized during the period on equity securities sold during the period
 
(7
)
 
(190
)
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date
 
$
(147
)
 
$
73


IMFT
IMFT was formed in 2006 by Micron Technology, Inc. (Micron) and Intel to jointly develop NAND flash memory and 3D XPoint™ technology products. As of March 30, 2019, we had a carrying value of $1.5 billion in IMFT and owned a 49% interest in the unconsolidated variable interest entity. We sold our non-controlling interest in IMFT to Micron in October 2019. We will continue to purchase product manufactured by Micron at the IMFT facility under supply agreements, which include the next generation of 3DXpoint technology.