XML 20 R10.htm IDEA: XBRL DOCUMENT v3.22.0.1
Cash, Cash Equivalents and Investments
 3 Months Ended
Jan. 30, 2022
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Investments Cash, Cash Equivalents and Investments
Summary of Cash, Cash Equivalents and Investments
The following tables summarize Applied’s cash, cash equivalents and investments by security type:
 
January 30, 2022CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
 (In millions)
Cash$1,260 $— $— $1,260 
Cash equivalents:
Money market funds3,968 — — 3,968 
Municipal securities14 — — 14 
Commercial paper, corporate bonds and medium-term notes22 — — 22 
Total Cash equivalents4,004 — — 4,004 
Total Cash and Cash equivalents$5,264 $— $— $5,264 
Short-term and long-term investments:
U.S. Treasury and agency securities$324 $— $3 $321 
Non-U.S. government securities*5 — — 5 
Municipal securities371 1 3 369 
Commercial paper, corporate bonds and medium-term notes602 1 5 598 
Asset-backed and mortgage-backed securities516 2 4 514 
Total fixed income securities1,818 4 15 1,807 
Publicly traded equity securities21 34 7 48 
Equity investments in privately-held companies564 94 14 644 
Total equity investments585 128 21 692 
Total short-term and long-term investments$2,403 $132 $36 $2,499 
Total Cash, Cash equivalents and Investments$7,667 $132 $36 $7,763 
_________________________
*Includes Canadian provincial government debt
October 31, 2021CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
 (In millions)
Cash$1,407 $— $— $1,407 
Cash equivalents:
Money market funds3,556 — — 3,556 
Municipal securities22 — — 22 
Commercial paper, corporate bonds and medium-term notes10 — — 10 
Total Cash equivalents3,588 — — 3,588 
Total Cash and Cash equivalents$4,995 $— $— $4,995 
Short-term and long-term investments:
U.S. Treasury and agency securities$314 $— $— $314 
Non-U.S. government securities*5 — — 5 
Municipal securities367 3 1 369 
Commercial paper, corporate bonds and medium-term notes587 2 2 587 
Asset-backed and mortgage-backed securities555 3 1 557 
Total fixed income securities1,828 8 4 1,832 
Publicly traded equity securities22 39 3 58 
Equity investments in privately-held companies561 82 14 629 
Total equity investments583 121 17 687 
Total short-term and long-term investments$2,411 $129 $21 $2,519 
Total Cash, Cash equivalents and Investments$7,406 $129 $21 $7,514 
 _________________________
*Includes Canadian provincial government debt
 
Maturities of Investments
The following table summarizes the contractual maturities of Applied’s investments as of January 30, 2022:
 
CostEstimated
Fair Value
 (In millions)
Due in one year or less$400 $401 
Due after one through five years902 892 
No single maturity date**1,101 1,206 
Total$2,403 $2,499 
 _________________________
** Securities with no single maturity date include publicly-traded and privately-held equity securities and asset-backed and mortgage-backed securities.
Gains and Losses on Investments
During the three months ended January 30, 2022 and January 31, 2021 gross realized gains and losses on investments were not material.
As of January 30, 2022, and October 31, 2021, gross unrealized losses related to Applied’s debt investment portfolio were not material. Applied regularly reviews its debt investment portfolio to identify and evaluate investments that have indications of possible impairment from credit losses or other factors. Factors considered in determining whether an unrealized loss is considered to be a credit loss include: the significance of the decline in value compared to the cost basis; the financial condition; credit quality and near-term prospects of the investee; and whether it is more likely than not that Applied will be required to sell the security prior to recovery. Credit losses related to available-for-sale debt securities are recorded as an allowance for credit losses through interest and other income, net. Any additional changes in fair value that are not related to credit losses are recognized in accumulated other comprehensive income.
During the three months ended January 30, 2022 and January 31, 2021, Applied did not recognize significant credit losses and the ending allowance for credit losses was not material on its debt investment portfolio. Impairment charges on equity investments in privately-held companies during the three months ended January 30, 2022 and January 31, 2021 were not material. These impairment charges are included in interest and other income, net in the Consolidated Condensed Statement of Operations.
The components of gain (loss) on equity investments for the three months ended January 30, 2022 and January 31, 2021 were as follows:
Three Months Ended
January 30, 2022January 31, 2021
 (In millions)
Publicly traded equity securities
Unrealized gain $1 $8 
Unrealized loss(8)— 
Realized gain on sales2 — 
Equity investments in privately-held companies
Unrealized gain12 1 
Unrealized loss— (3)
Realized gain on sales— 2 
Realized loss on sales or impairment(4)— 
Total gain (loss) on equity investments, net$3 $8