Note 15: Fair Value

ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS



	December 30, 2017								December 31, 2016
	Fair Value Measured and Recorded at Reporting Date Using						Total		Fair Value Measured and Recorded at Reporting Date Using						Total
(In Millions)	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Assets
Cash equivalents:
Corporate debt	$	—	$	30	$	—	$	30	$	—	$	498	$	—	$	498
Financial institution instruments ¹	335		640		—		975		1,920		811		—		2,731
Government debt ²	—		90		—		90		—		332		—		332
Reverse repurchase agreements	—		1,399		—		1,399		—		768		—		768
Short-term investments:
Corporate debt	—		672		3		675		—		1,332		6		1,338
Financial institution instruments ¹	—		1,009		—		1,009		—		1,603		—		1,603
Government debt ²	—		130		—		130		—		284		—		284
Trading assets:
Asset-backed securities	—		2		—		2		—		87		—		87
Corporate debt	—		2,842		—		2,842		—		2,847		—		2,847
Financial institution instruments ¹	59		1,064		—		1,123		36		1,608		—		1,644
Government debt ²	30		4,758		—		4,788		32		3,704		—		3,736
Other current assets:
Derivative assets	2		277		—		279		—		382		—		382
Loans receivable	—		30		—		30		—		326		—		326
Marketable equity securities	4,148		44		—		4,192		6,180		—		—		6,180
Other long-term investments:
Corporate debt	—		1,576		4		1,580		—		1,995		6		2,001
Financial institution instruments ¹	—		1,397		—		1,397		—		1,758		—		1,758
Government debt ²	—		735		—		735		—		957		—		957
Other long-term assets:
Derivative assets	—		77		7		84		—		31		9		40
Loans receivable	—		610		—		610		—		236		—		236
Total assets measured and recorded at fair value	4,574		17,382		14		21,970		8,168		19,559		21		27,748
Liabilities
Other accrued liabilities:
Derivative liabilities	—		454		—		454		—		371		—		371
Other long-term liabilities:
Derivative liabilities	—		297		6		303		—		179		33		212
Total liabilities measured and recorded at fair value	$	—	$	751	$	6	$	757	$	—	$	550	$	33	$	583


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 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.

In the second quarter of 2017, we began assigning fair value hierarchy levels based on the underlying instrument type for our fixed-income portfolio. We have reclassified prior period amounts to conform to the current period presentation.

FAIR VALUE OPTION FOR LOANS RECEIVABLE

The fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance as of December 30, 2017 and December 31, 2016.

ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS

Our non-marketable equity investments, marketable equity method investments, and non-financial assets—such as intangible assets and property, plant and equipment—are recorded at fair value only if an impairment is recognized.

We classified non-marketable equity investments as Level 3. Impairments recognized on non-marketable equity investments held as of December 30, 2017 were $537 million ($153 million held as of December 31, 2016 and $160 million held as of December 26, 2015).

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 cost method investments, grants receivable, loans receivable, reverse repurchase agreements, and our short-term and long-term debt.

As of December 30, 2017, the carrying amount and fair value of our non-marketable cost method investments was $2.6 billion and $3.6 billion, respectively ($3.1 billion and $3.9 billion as of December 31, 2016, respectively). These measures are classified as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.

As of December 30, 2017, the aggregate carrying value of grants receivable, loans receivable, and reverse repurchase agreements was $935 million (the aggregate carrying amount as of December 31, 2016 was $876 million). 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.

For information related to the fair value of our short-term and long-term debt, see "Note 14: Borrowings."