Marketable Securities

All of our cash equivalents and marketable securities are classified as “available-for-sale” securities. These securities are reported at fair value, with the related unrealized gains and losses included in accumulated other comprehensive income, a component of stockholders’ equity, net of tax, and net realized gains and losses recorded in other income, net, on the Condensed Consolidated Statement of Income.

We performed an impairment review of our investment portfolio as of July 27, 2014. Based on our quarterly impairment review and having considered the guidance in the relevant accounting literature, we concluded that our investments were appropriately valued and that no other than temporary impairment charges were necessary on our portfolio as of July 27, 2014.

The following is a summary of cash equivalents and marketable securities at July 27, 2014 and January 26, 2014:



	July 27, 2014
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
	(In thousands)
Corporate debt securities	$	2,042,721	$	2,139	$	(1,430	)	$	2,043,430
Debt securities of United States government agencies	700,025		352		(216		)	700,161
Debt securities issued by United States Treasury	586,484		896		(69		)	587,311
Asset-backed securities	411,669		169		(310		)	411,528
Mortgage-backed securities issued by United States government-sponsored enterprises	258,483		4,279		(1,340		)	261,422
Money market funds	119,491		—		—			119,491
Total	$	4,118,873	$	7,835	$	(3,365	)	$	4,123,343
Classified as:
Cash equivalents								$	252,381
Marketable securities								3,870,962
Total								$	4,123,343



	January 26, 2014
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
	(In thousands)
Corporate debt securities	$	1,827,788	$	1,857	$	(1,065	)	$	1,828,580
Debt securities of United States government agencies	1,012,740		848		(261		)	1,013,327
Debt securities issued by United States Treasury	495,889		621		(57		)	496,453
Money market funds	307,865		—		—			307,865
Asset-backed securities	258,017		15		(315		)	257,717
Mortgage-backed securities issued by United States government-sponsored enterprises	185,594		3,837		(725		)	188,706
Total	$	4,087,893	$	7,178	$	(2,423	)	$	4,092,648
Classified as:
Cash equivalents								$	572,425
Marketable securities								3,520,223
Total								$	4,092,648

The following table provides the breakdown of the investments with unrealized losses at July 27, 2014:



	Less than 12 months					12 months or greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Corporate debt securities	$	664,945	$	(90	)	$	1,378,485	$	(1,340	)	$	2,043,430	$	(1,430	)
Debt securities of United States government agencies	304,481		(3		)	395,680		(213		)	700,161		(216		)
Debt securities issued by United States Treasury	45,045		(28		)	542,266		(41		)	587,311		(69		)
Asset-backed securities	162,899		(14		)	248,629		(296		)	411,528		(310		)
Mortgage-backed securities issued by United States government-sponsored enterprises	—		—			261,422		(1,340		)	261,422		(1,340		)
Total	$	1,177,370	$	(135	)	$	2,826,482	$	(3,230	)	$	4,003,852	$	(3,365	)

The gross unrealized losses related to fixed income securities were due to changes in interest rates. We have determined that the gross unrealized losses on investment securities at July 27, 2014 are temporary in nature. Currently, we have the intent and ability to hold our investments with impairment indicators until maturity.

The amortized cost and estimated fair value of cash equivalents and marketable securities, which are primarily debt instruments, are classified as available-for-sale at July 27, 2014 and January 26, 2014 and are shown below by contractual maturity.



	July 27, 2014				January 26, 2014
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Less than 1 year	$	1,296,254	$	1,296,861	$	1,883,132	$	1,883,753
Due in 1 - 5 years	2,665,096		2,667,222		2,114,289		2,117,387
Mortgage-backed securities issued by government-sponsored enterprises not due at a single maturity date	157,523		159,260		90,472		91,508
Total	$	4,118,873	$	4,123,343	$	4,087,893	$	4,092,648

Net realized gains for the three and six months ended July 27, 2014 were not significant. Net realized gains for the three and six months ended July 28, 2013 were $1.6 million and $1.7 million, respectively.