XML 57 R10.htm IDEA: XBRL DOCUMENT v2.4.1.9
Marketable Securities
 3 Months Ended
Apr. 26, 2015
Notes to financial statements [Abstract]  
Marketable Securities
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 shareholders’ equity, net of tax, and net realized gains and losses recorded in other income, net, on the Condensed Consolidated Statements of Income.

We performed an impairment review of our investment portfolio as of April 26, 2015. Based on our quarterly impairment review, we concluded that our investments were appropriately valued and that no other than temporary impairment charges were necessary on our portfolio as of April 26, 2015.

The following is a summary of cash equivalents and marketable securities at April 26, 2015 and January 25, 2015: 
 
April 26, 2015
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
(In millions)
Corporate debt securities
$
2,214

 
$
4

 
$
(1
)
 
$
2,217

Debt securities of United States government agencies
968

 
1

 
—

 
969

Asset-backed securities
480

 
—

 
—

 
480

Debt securities issued by United States Treasury
415

 
1

 
—

 
416

Mortgage-backed securities issued by United States government-sponsored enterprises
260

 
4

 
—

 
264

Foreign government bonds
81

 
—

 
—

 
81

Money market funds
19

 
—

 
—

 
19

Total
$
4,437

 
$
10

 
$
(1
)
 
$
4,446

Classified as:
 

 
 

 
 

 
 

Cash equivalents
 

 
 

 
 

 
$
118

Marketable securities
 

 
 

 
 

 
4,328

Total
 

 
 

 
 

 
$
4,446

 
January 25, 2015
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
(In millions)
Corporate debt securities
$
2,185

 
$
2

 
$
(1
)
 
$
2,186

Debt securities of United States government agencies
750

 
1

 
(1
)
 
750

Asset-backed securities
453

 
—

 
—

 
453

Debt securities issued by United States Treasury
534

 
3

 
—

 
537

Mortgage-backed securities issued by United States government-sponsored enterprises
274

 
5

 
(1
)
 
278

Foreign government bonds
85

 
—

 
—

 
85

Money market funds
132

 
—

 
—

 
132

Total
$
4,413

 
$
11

 
$
(3
)
 
$
4,421

Classified as:
 
 
 
 
 
 
 
Cash equivalents
 
 
 
 
 
 
$
295

Marketable securities
 
 
 
 
 
 
4,126

Total
 
 
 
 
 
 
$
4,421


 
The following table provides the breakdown of the investments with unrealized losses at April 26, 2015: 
 
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 millions)
Corporate debt securities
$
573

 
$
(1
)
 
$
13

 
$
—

 
$
586

 
$
(1
)
Debt securities of United States government agencies
309

 
—

 
9

 
—

 
318

 
—

Asset-backed securities
257

 
—

 
3

 
—

 
260

 
—

Mortgage-backed securities issued by United States government-sponsored enterprises
74

 
—

 
18

 
—

 
92

 
—

Debt securities issued by United States Treasury
58

 
—

 
—

 
—

 
58

 
—

Foreign government bonds
14


—

 
—


—

 
14

 
—

Total
$
1,285

 
$
(1
)
 
$
43

 
$
—

 
$
1,328

 
$
(1
)


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 April 26, 2015 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 April 26, 2015 and January 25, 2015 and are shown below by contractual maturity.  

 
April 26, 2015
 
January 25, 2015
 
Amortized
Cost
 
Estimated
Fair Value
 
Amortized
Cost
 
Estimated
Fair Value
 
(In millions)
Less than 1 year
$
1,445

 
$
1,445

 
$
1,570

 
$
1,571

Due in 1 - 5 years
2,866

 
2,872

 
2,720

 
2,726

Mortgage-backed securities issued by government-sponsored enterprises not due at a single maturity date
126

 
129

 
123

 
124

Total
$
4,437

 
$
4,446

 
$
4,413

 
$
4,421


 
Net realized gains for the three months ended April 26, 2015 were $3 million, and were not significant for the three months ended April 27, 2014.