Marketable Securities

6 Months Ended

Jul. 31, 2016

Notes to financial statements [Abstract]

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 July 31, 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 July 31, 2016.

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



	July 31, 2016
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
	(In millions)
Corporate debt securities	$	1,972	$	5	$	(1	)	$	1,976
Debt securities of United States government agencies	1,046		2		—			1,048
Debt securities issued by United States Treasury	809		3		—			812
Asset-backed securities	369		1		—			370
Mortgage-backed securities issued by United States government-sponsored enterprises	175		3		(1		)	177
Foreign government bonds	80		—		—			80
Money market funds	47		—		—			47
Total	$	4,498	$	14	$	(2	)	$	4,510
Classified as:
Cash equivalents								$	57
Marketable securities								4,453
Total								$	4,510



	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 July 31, 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	$	263	$	1	$	98	$	—	$	361	$	1
Mortgage-backed securities issued by United States government-sponsored enterprises	54		1		31		—		85		1
	$	317	$	2	$	129	$	—	$	446	$	2

The gross unrealized losses as of July 31, 2016 related to fixed income securities 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 July 31, 2016 and January 31, 2016 and are shown below by contractual maturity:



	July 31, 2016				January 31, 2016
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In millions)
Less than 1 year	$	1,846	$	1,847	$	1,619	$	1,619
Due in 1 - 5 years	2,591		2,601		3,019		3,020
Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date	61		62		34		34
Total	$	4,498	$	4,510	$	4,672	$	4,673

Net realized losses were not significant for the three and six months ended July 31, 2016 and for the three months ended July 26, 2015. Net realized gains were $3 million for the six months ended July 26, 2015.