Marketable Securities

3 Months Ended

May. 01, 2016

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 (loss), a component of shareholders’ equity, net of tax, and net realized gains and losses recorded in other income and expense, net, on the Condensed Consolidated Statements of Income.

We performed an impairment review of our investment portfolio as of May 1, 2016. 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 of available-for-sale investments as of May 1, 2016.

The following is a summary of cash equivalents and marketable securities as of May 1, 2016 and January 31, 2016: 

	May 1, 2016
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
	(In millions)
Corporate debt securities	$	1,791	$	3	$	(1	)	$	1,793
Debt securities of United States government agencies	1,027		1		—			1,028
Debt securities issued by United States Treasury	716		2		—			718
Asset-backed securities	380		1		—			381
Mortgage-backed securities issued by United States government-sponsored enterprises	187		3		(2		)	188
Foreign government bonds	102		—		—			102
Money market funds	31		—		—			31
Total	$	4,234	$	10	$	(3	)	$	4,241
Classified as:
Cash equivalents								$	34
Marketable securities								4,207
Total								$	4,241

	January 31, 2016
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
	(In millions)
Corporate debt securities	$	1,903	$	1	$	(3	)	$	1,901
Debt securities of United States government agencies	1,170		1		(1		)	1,170
Debt securities issued by United States Treasury	800		1		—			801
Asset-backed securities	435		—		—			435
Mortgage-backed securities issued by United States government-sponsored enterprises	229		3		(1		)	231
Foreign government bonds	92		—		—			92
Money market funds	43		—		—			43
Total	$	4,672	$	6	$	(5	)	$	4,673
Classified as:
Cash equivalents								$	232
Marketable securities								4,441
Total								$	4,673

The following table provides the breakdown of the investments with unrealized losses as of May 1, 2016: 

	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	$	422	$	(1	)	$	108	$	—	$	530	$	(1	)
Mortgage-backed securities issued by United States government-sponsored enterprises	60		(1		)	34		—		94		(1		)
Total	$	482	$	(2	)	$	142	$	—	$	624	$	(2	)

The gross unrealized losses as of May 1, 2016 related to fixed income securities were due to changes in interest rates and are temporary in nature. 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 as of May 1, 2016 and January 31, 2016 and are shown below by contractual maturity:  

	May 1, 2016				January 31, 2016
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In millions)
Less than 1 year	$	1,714	$	1,716	$	1,619	$	1,619
Due in 1 - 5 years	2,474		2,479		3,019		3,020
Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date	46		46		34		34
Total	$	4,234	$	4,241	$	4,672	$	4,673

Net realized losses were not significant for the three months ended May 1, 2016. Net realized gains were $3 million for the three months ended April 26, 2015.