Marketable Securities

9 Months Ended

Oct. 25, 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 October 25, 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 October 25, 2015.

The following is a summary of cash equivalents and marketable securities at October 25, 2015 and January 25, 2015: 

	October 25, 2015
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
	(In millions)
Corporate debt securities	$	1,975	$	2	$	(2	)	$	1,975
Debt securities of U.S. government agencies	994		1		—			995
Debt securities issued by the U.S. Treasury	554		1		—			555
Asset-backed securities	472		—		—			472
Mortgage-backed securities issued by U.S. government-sponsored enterprises	240		4		(1		)	243
Foreign government bonds	83		—		—			83
Money market funds	30		—		—			30
Total	$	4,348	$	8	$	(3	)	$	4,353
Classified as:
Cash equivalents								$	96
Marketable securities								4,257
Total								$	4,353

	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 U.S. government agencies	750		1		(1		)	750
Debt securities issued by the U.S. Treasury	534		3		—			537
Asset-backed securities	453		—		—			453
Mortgage-backed securities issued by U.S. 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 October 25, 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	$	798	$	(2	)	$	54	$	—	$	852	$	(2	)
Mortgage-backed securities issued by U.S. government-sponsored enterprises	73		(1		)	26		—		99		(1		)
Total	$	871	$	(3	)	$	80	$	—	$	951	$	(3	)

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 October 25, 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 October 25, 2015 and January 25, 2015 and are shown below by contractual maturity:  

	October 25, 2015				January 25, 2015
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In millions)
Less than 1 year	$	1,453	$	1,454	$	1,570	$	1,571
Due in 1 - 5 years	2,811		2,815		2,720		2,726
Mortgage-backed securities issued by government-sponsored enterprises not due at a single maturity date	84		84		123		124
Total	$	4,348	$	4,353	$	4,413	$	4,421

Net realized gains were not significant for the three months ended October 25, 2015 and for the three and nine months ended October 26, 2014. Net realized gains were $3 million for the nine months ended October 25, 2015.