Fair Value

9 Months Ended

Oct. 01, 2022

Fair Value Disclosures [Abstract]

Fair Value

Note 9 : Fair Value

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

	Oct 1, 2022								Dec 25, 2021
	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	$	—	$	103	$	—	$	103	$	—	$	65	$	—	$	65
Financial institution instruments¹	644		1,431		—		2,075		1,216		763		—		1,979
Reverse repurchase agreements	—		1,750		—		1,750		—		1,595		—		1,595
Short-term investments:
Corporate debt	—		6,457		—		6,457		—		6,367		—		6,367
Financial institution instruments¹	217		5,615		—		5,832		154		5,162		—		5,316
Government debt²	48		5,693		—		5,741		50		12,693		—		12,743
Other current assets:
Derivative assets	—		2,003		—		2,003		80		576		—		656
Loans receivable³	—		—		—		—		—		152		—		152
Marketable equity securities4	1,100		85		—		1,185		1,854		317		—		2,171
Other long-term assets:
Derivative assets	—		10		—		10		—		772		7		779
Loans receivable³	—		48		—		48		—		57		—		57
Total assets measured and recorded at fair value	$	2,009	$	23,195	$	—	$	25,204	$	3,354	$	28,519	$	7	$	31,880
Liabilities
Other accrued liabilities:
Derivative liabilities	$	151	$	1,386	$	—	$	1,537	$	4	$	516	$	—	$	520
Other long-term liabilities:
Derivative liabilities	—		689		89		778		—		9		—		9
Total liabilities measured and recorded at fair value	$	151	$	2,075	$	89	$	2,315	$	4	$	525	$	—	$	529

1Level 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.

2Level 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.

3The fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance.

4Level 2 investments consist of marketable equity securities subject to security-specific restrictions.

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 October 1, 2022 was $569 million (the aggregate carrying value as of December 25, 2021 was $317 million). The aggregate carrying value of reverse repurchase agreements with original maturities greater than three months as of October 1, 2022 was $400 million (the aggregate carrying value as of December 25, 2021 was $0).

We classify the fair value of issued debt (excluding any commercial paper, drafts payable, and finance leases) as Level 2. The fair value of our issued debt was $34.8 billion as of October 1, 2022 ($41.5 billion as of December 25, 2021).