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Financial Instruments
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
Financial Instruments Recorded at Fair Value on a Recurring Basis
December 31, 2022December 25, 2021
(In millions)Level 1Level 2TotalLevel 1Level 2Total
Cash equivalents
Money market funds$3,017 $— $3,017 $4 $— $4 
Commercial paper— 224 224 — 45 45 
Time deposits and certificates of deposits— 159 159 — — — 
Short-term investments
Commercial paper— 441 441 — 880 880 
Time deposits and certificates of deposits— — — — 193 193 
Asset-backed and mortgage-backed securities— 39 39 — — — 
U.S. Treasury and agency securities466 — 466 — — — 
Foreign government and agency securities— 74 74 — — — 
Other non-current assets
Time deposits and certificates of deposits— 9 9 — — — 
Equity investments8 — 8 66 — 66 
Deferred compensation plan investments90 — 90 72 — 72 
Total assets measured at fair value$3,581 $945 $4,526 $142 $1,118 $1,260 
The Company did not have any financial instruments measured at fair value on a recurring basis within Level 3 fair value measurements as of December 31, 2022 or December 25, 2021.
Deferred compensation plan investments are primarily mutual fund investments held in a Rabbi trust established to maintain the Company’s executive deferred compensation plan.
The following is a summary of cash equivalents and short-term investments:
December 31, 2022
Cost/ Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
(in millions)
Asset-backed and mortgage-backed securities$42 $— $(3)$39 
Commercial paper669 — (4)665 
Money market funds3,017 — — 3,017 
Time deposits and certificates of deposits159 — 159 
U.S. Treasury and agency securities471 — (5)466 
Foreign government and agency securities74 — — 74 
$4,432 $— $(12)$4,420 
As of December 31, 2022, the Company did not have material available-for-sale debt securities which had been in a continuous unrealized loss position of more than twelve months.
The contractual maturities of investments classified as available-for-sale are as follows:
December 31, 2022December 25, 2021
Amortized CostFair ValueAmortized CostFair Value
(In millions)(In millions)
Due within 1 year$1,224 $1,218 $1,118 $1,118 
Due in 1 year through 5 years159 156 — — 
Due in 5 years and later41 38 — — 
$1,424 $1,412 $1,118 $1,118 
Financial Instruments Not Recorded at Fair Value
The carrying amounts and estimated fair values of the Company’s long-term debt are as follows:
 December 31, 2022December 25, 2021
 Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
 (In millions)
Current portion of long-term debt, net$— $— $312 $326 
Long-term debt, net of current portion2,467 2,281 1 15 
The estimated fair value of the Company’s long-term debt is based on Level 2 inputs of quoted prices for the Company’s debt and comparable instruments in inactive markets.
The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing terms.
Financial Instruments Measured at Fair Value on a Non-Recurring Basis
As of December 31, 2022, the Company had non-marketable securities in privately-held companies of $137 million. The balance of non-marketable securities in privately-held companies as of December 25, 2021 was not material.
Hedging Transactions and Derivative Financial Instruments
Foreign Currency Forward Contracts Designated as Accounting Hedges
The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 24 months and are designated as accounting hedges. As of December 31, 2022 and December 25, 2021, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $1.9 billion and $894 million, respectively. The fair value of these contracts, recorded as a liability, was $27 million as of December 31, 2022. The fair value of these contracts as of December 25, 2021 was not material.
Foreign Currency Forward Contracts Not Designated as Accounting Hedges
The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months and are not designated as accounting hedges. As of December 31, 2022 and December 25, 2021, the notional value of these outstanding contracts was $485 million and $291 million, respectively. The fair value of these contracts was not material as of December 31, 2022 and December 25, 2021.
The cash flows associated with derivative instruments as cash flow hedging instruments are classified in the same category in the Consolidated Statement of Cash Flows as the cash flows of the related items.
Summary of Investment Holdings, Schedule of Investments The following is a summary of cash equivalents and short-term investments:
December 31, 2022
Cost/ Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
(in millions)
Asset-backed and mortgage-backed securities$42 $— $(3)$39 
Commercial paper669 — (4)665 
Money market funds3,017 — — 3,017 
Time deposits and certificates of deposits159 — 159 
U.S. Treasury and agency securities471 — (5)466 
Foreign government and agency securities74 — — 74 
$4,432 $— $(12)$4,420