Cash, Cash Equivalents and Investments (Tables)

6 Months Ended

May 02, 2021

Cash and Cash Equivalents [Abstract]

Summary of cash, cash equivalents and investments

The following tables summarize Applied’s cash, cash equivalents and investments by security type:

May 2, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Cash	$	1,257	$	—	$	—	$	1,257
Cash equivalents:
Money market funds	5,038		—		—		5,038
Municipal securities	—		—		—		—
Commercial paper, corporate bonds and medium-term notes	10		—		—		10
Total Cash equivalents	5,048		—		—		5,048
Total Cash and Cash equivalents	$	6,305	$	—	$	—	$	6,305
Short-term and long-term investments:
Bank certificate of deposit	$	2	$	—	$	—	$	2
U.S. Treasury and agency securities	329		1		—		330
Non-U.S. government securities*	5		—		—		5
Municipal securities	359		5		—		364
Commercial paper, corporate bonds and medium-term notes	568		5		1		572
Asset-backed and mortgage-backed securities	518		7		1		524
Total fixed income securities	1,781		18		2		1,797
Publicly traded equity securities	12		42		—		54
Equity investments in privately-held companies	136		56		14		178
Total equity investments	148		98		14		232
Total short-term and long-term investments	$	1,929	$	116	$	16	$	2,029
Total Cash, Cash equivalents and Investments	$	8,234	$	116	$	16	$	8,334

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* Includes agency debt securities guaranteed by Canada

October 25, 2020	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Cash	$	1,136	$	—	$	—	$	1,136
Cash equivalents:
Money market funds	4,209		—		—		4,209
Municipal securities	6		—		—		6
Total Cash equivalents	4,215		—		—		4,215
Total Cash and Cash equivalents	$	5,351	$	—	$	—	$	5,351
Short-term and long-term investments:
U.S. Treasury and agency securities	$	394	$	4	$	—	$	398
Municipal securities	359		6		—		365
Commercial paper, corporate bonds and medium-term notes	492		8		1		499
Asset-backed and mortgage-backed securities	470		9		—		479
Total fixed income securities	1,715		27		1		1,741
Publicly traded equity securities	11		36		2		45
Equity investments in privately-held companies	121		25		7		139
Total equity investments	132		61		9		184
Total short-term and long-term investments	$	1,847	$	88	$	10	$	1,925
Total Cash, Cash equivalents and Investments	$	7,198	$	88	$	10	$	7,276

Contractual maturities of investments

The following table summarizes the contractual maturities of Applied’s investments as of May 2, 2021:

	Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	417	$	419
Due after one through five years	846		854
No single maturity date**	666		756
Total	$	1,929	$	2,029

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** Securities with no single maturity date include publicly-traded and privately-held equity securities and asset-backed and mortgage-backed securities.

Components of gain (loss) on equity investment

The components of gain (loss) on equity investments for the three and six months ended May 2, 2021 and April 26, 2020 were as follows:

	Three Months Ended				Six Months Ended
	May 2, 2021		April 26, 2020		May 2, 2021		April 26, 2020
	(In millions)
Publicly traded equity securities
Unrealized gain	$	3	$	3	$	11	$	5
Unrealized loss	(2)		(12)		(2)		(15)
Equity investments in privately-held companies
Unrealized gain	30		9		31		9
Unrealized loss	(5)		(2)		(8)		(3)
Realized gain on sales	1		1		3		1
Realized loss on sales or impairment	(7)		(6)		(7)		(8)
Total gain (loss) on equity investments, net	$	20	$	(7)	$	28	$	(11)