v3.26.1
Financial Instruments
 3 Months Ended
Mar. 28, 2026
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
Financial Instruments Recorded at Fair Value on a Recurring Basis
March 28, 2026December 27, 2025
(In millions)Level 1Level 2
Level 3
TotalLevel 1Level 2Level 3Total
Cash equivalents
Money market funds$640 $— $— $640 $620 $— $— $620 
Corporate debt securities— 1,509 — 1,509 — 1,869 — 1,869 
U.S. government and agency securities1,049 798 — 1,847 1,148 300 — 1,448 
Non-U.S. government and agency securities— 100 — 100 — 245 — 245 
Time deposits and certificates of deposits— 92 — 92 — 173 — 173 
Short-term investments
Corporate debt securities— 4,446 — 4,446 — 3,107 — 3,107 
U.S. government and agency securities1,074 1,043 — 2,117 901 718 — 1,619 
Non-U.S. government and agency securities— 161 — 161 — 256 — 256 
Time deposits and certificates of deposits— 11 — 11 — 10 — 10 
Asset-backed and mortgage-backed securities— 21 — 21 — 22 — 22 
Marketable equity securities6 — — 6 — — — — 
Other non-current assets
Long-term investments
169 — 126 295 198 — 202 400 
Deferred compensation plan investments269 — — 269 257 — — 257 
Total assets measured at fair value$3,207 $8,181 $126 $11,514 $3,124 $6,700 $202 $10,026 
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:
March 28, 2026December 27, 2025
Cost/ Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair
Value		Cost/ Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair
Value
(in millions)(in millions)
Money market funds$640 $— $— $640 $620 $— $— $620 
Corporate debt securities5,976 1 (22)5,955 4,974 2 — 4,976 
U.S. government and agency securities3,969 1 (6)3,964 3,065 2 — 3,067 
Non-U.S. government and agency securities261 — — 261 501 — — 501 
Time deposits and certificates of deposits103 — — 103 183 — — 183 
Asset-backed and mortgage-backed securities22 — (1)21 23 — (1)22 
Marketable equity securities6 — — 6 — — — — 
$10,977 $2 $(29)$10,950 $9,366 $4 $(1)$9,369 
As of March 28, 2026 and December 27, 2025, the Company did not have material available-for-sale debt securities which have been in a continuous unrealized loss position of more than twelve months.
The contractual maturities of available-for-sale debt securities are as follows:
March 28, 2026December 27, 2025
Amortized CostFair ValueAmortized CostFair Value
(In millions)(In millions)
Due within 1 year$6,998 $6,996 $6,528 $6,528 
Due in 1 year through 5 years3,313 3,288 2,195 2,199 
Due in 5 years and later21 20 23 22 
$10,332 $10,304 $8,746 $8,749 
Financial Instruments Not Recorded at Fair Value
The carrying amounts and estimated fair values of the Company’s current and long-term debt are as follows:
 March 28, 2026December 27, 2025
 Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
(In millions)(In millions)
Current portion of long-term debt, net
$874 $877 $874 $879 
Long-term debt
$2,350 $2,209 $2,348 $2,246 
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
Non-marketable equity securities and other instruments primarily include investments in privately held companies with technologies that are typically in early stages of research or development. These investments are recorded within Other non-current assets on the Consolidated Balance Sheets. Gains and losses are recorded in Other income, expense, net on the Consolidated Statements of Operations.
As of March 28, 2026 and December 27, 2025, the Company had long-term investments in non-marketable equity securities of $1.8 billion and $1.1 billion, respectively, which are recorded at estimated fair value based on observable events or adjustments from impairments.
As of March 28, 2026, non-marketable equity investments had cumulative gross unrealized gains of $384 million and cumulative gross unrealized losses and impairments of $52 million. During the three months ended March 28, 2026, the Company recognized gross unrealized gains of $93 million and gross unrealized losses and impairments were not material. As of March 29, 2025, cumulative and quarterly gross unrealized gains, losses and impairments were 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 March 28, 2026 and December 27, 2025, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $2.9 billion and $2.3 billion, respectively. The fair value of these contracts was not material as of March 28, 2026 and December 27, 2025.
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 March 28, 2026 and December 27, 2025, the notional value of these outstanding contracts was $1.2 billion and $1.1 billion, respectively. The fair value of these contracts was not material as of March 28, 2026 and December 27, 2025.
The cash flows associated with derivative instruments as cash flow hedging instruments are classified in the same category within the Consolidated Statement of Cash Flows as the cash flows of the related items.
Lease Guarantees
As of March 28, 2026, the Company had a maximum gross exposure of $4.1 billion from guarantees issued in connection with certain commercial partner data center lease obligations with a term of up to 15 years. Guarantees typically become payable in the event of a commercial partner’s default and may be issued in exchange for warrants. The exposure decreases over time as contractual lease payments are made to the lessor. Guarantees are recorded as a credit derivative within Other long-term liabilities, with changes in fair value recorded within Other income (expense), net, and were not material to the financial statements.