Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Aug. 28, 2020

Cash, Cash Equivalents, and Short-term Investments [Abstract]

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTSCash equivalents consist of highly liquid marketable debt securities with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable debt securities as “available-for-sale.” We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our condensed consolidated balance sheets. Gains and losses are determined using the specific identification method and recognized when realized in our condensed consolidated statements of income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income.

Cash, cash equivalents and short-term investments consisted of the following as of August 28, 2020:

(in millions)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Current assets:
Cash	$	740	$	—	$	—	$	740
Cash equivalents:
Corporate debt securities	5		—		—		5
Money market mutual funds	2,937		—		—		2,937
Time deposits	85		—		—		85
Total cash equivalents	3,027		—		—		3,027
Total cash and cash equivalents	3,767		—		—		3,767
Short-term fixed income securities:
Asset-backed securities	89		—		—		89
Corporate debt securities	1,384		11		—		1,395
Municipal securities	13		—		—		13
Total short-term investments	1,486		11		—		1,497
Total cash, cash equivalents and short-term investments	$	5,253	$	11	$	—	$	5,264

Cash, cash equivalents and short-term investments consisted of the following as of November 29, 2019:

(in millions)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Current assets:
Cash	$	467	$	—	$	—	$	467
Cash equivalents:
Corporate debt securities	46		—		—		46
Money market mutual funds	2,049		—		—		2,049
Time deposits	88		—		—		88
Total cash equivalents	2,183		—		—		2,183
Total cash and cash equivalents	2,650		—		—		2,650
Short-term fixed income securities:
Asset-backed securities	89		—		—		89
Corporate debt securities	1,408		4		—		1,412
Municipal securities	18		—		—		18
U.S. Treasury securities	8		—		—		8
Total short-term investments	1,523		4		—		1,527
Total cash, cash equivalents and short-term investments	$	4,173	$	4	$	—	$	4,177

We had immaterial gross unrealized losses related to our available-for-sale securities as of August 28, 2020 and November 29, 2019. The following table summarizes the fair value of our available-for-sale securities that have been in a continuous unrealized loss position as of August 28, 2020 and November 29, 2019:

(in millions)	2020				2019
	Less Than Twelve Months		More Than Twelve Months		Less Than Twelve Months		More Than Twelve Months
Corporate debt securities	$	155	$	—	$	235	$	44
Asset-backed securities	10		—		7		7
Municipal securities	1		—		3		—
Total	$	166	$	—	$	245	$	51

There were 70 securities and 115 securities in an unrealized loss position for less than twelve months at August 28, 2020 and November 29, 2019, respectively. There were no securities in an unrealized loss position for more than twelve months at August 28, 2020, and 38 securities in an unrealized loss position for more than twelve months at November 29, 2019.

The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of August 28, 2020:

(in millions)	Amortized Cost		Estimated Fair Value
Due within one year	$	890	$	894
Due between one and two years	393		398
Due between two and three years	176		178
Due after three years	27		27
Total	$	1,486	$	1,497

We review our debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we write down these investments to fair value. The portion of the write-down related to credit loss would be recorded to other income (expense), net in our condensed consolidated statements of income. Any portion not related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our condensed consolidated balance sheets. During the nine months ended August 28, 2020 and August 30, 2019, we did not consider any of our investments to be other-than-temporarily impaired.