Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.20.1
Fair Value
3 Months Ended
Mar. 28, 2020
Fair Value Disclosures [Abstract]  
Fair Value [Text Block]
NOTE 9 :
FAIR VALUE
ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS
 
 
March 28, 2020
 
December 28, 2019
 
 
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
 
$

 
$
1,348

 
$

 
$
1,348

 
$

 
$
713

 
$

 
$
713

Financial institution instruments¹
 
7,557

 
600

 

 
8,157

 
1,064

 
408

 

 
1,472

Government debt²
 

 
199

 

 
199

 

 

 

 

Reverse repurchase agreements
 

 
1,150

 

 
1,150

 

 
1,500

 

 
1,500

Short-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
493

 

 
493

 

 
347

 

 
347

Financial institution instruments¹
 

 
803

 

 
803

 

 
724

 

 
724

Government debt²
 

 

 

 

 

 
11

 

 
11

Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
2,850

 

 
2,850

 

 
2,848

 

 
2,848

Financial institution instruments¹
 
78

 
2,020

 

 
2,098

 
87

 
1,578

 

 
1,665

Government debt²
 

 
3,179

 

 
3,179

 

 
3,334

 

 
3,334

Other current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 
5

 
372

 

 
377

 
50

 
230

 

 
280

Loans receivable³
 

 
339

 

 
339

 

 

 

 

Marketable equity securities
 
330

 

 

 
330

 
450

 

 

 
450

Other long-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
 

 
1,852

 

 
1,852

 

 
1,898

 

 
1,898

Financial institution instruments¹
 

 
532

 

 
532

 

 
825

 

 
825

Government debt²
 

 
559

 

 
559

 

 
553

 

 
553

Other long-term assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 

 
1,604

 
35

 
1,639

 

 
690

 
16

 
706

Loans receivable³
 

 
203

 

 
203

 

 
554

 

 
554

Total assets measured and recorded at fair value
 
$
7,970

 
$
18,103

 
$
35

 
$
26,108

 
$
1,651

 
$
16,213

 
$
16

 
$
17,880

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other accrued liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
$
190

 
$
614

 
$

 
$
804

 
$
3

 
$
287

 
$

 
$
290

Other long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 

 
106

 

 
106

 

 
13

 

 
13

Total liabilities measured and recorded at fair value
 
$
190

 
$
720

 
$

 
$
910

 
$
3

 
$
300

 
$

 
$
303


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 and equity method investments that have not been remeasured or impaired in the current period, grants receivable, loans receivable, reverse repurchase agreements, and issued debt.
As of March 28, 2020, the aggregate carrying value of grants receivable, loans receivable, and reverse repurchase agreements was $534 million ($543 million as of December 28, 2019). 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 March 28, 2020, the fair value of our issued debt was $41.3 billion ($30.6 billion as of December 28, 2019). These liabilities are classified as Level 2 within the fair value hierarchy based on the nature of the fair value inputs.