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Available-for-Sale Debt Investments and Equity Investments
 9 Months Ended
Apr. 25, 2020
Investments, Debt and Equity Securities [Abstract]  
Available-for-Sale Debt Investments and Equity Investments
Available-for-Sale Debt Investments and Equity Investments
The following table summarizes our available-for-sale debt investments and equity investments (in millions):
 
April 25, 2020
 
July 27, 2019
Available-for-sale debt investments
$
18,208

 
$
21,660

Marketable equity securities
—

 
3

Total investments
18,208

 
21,663

Non-marketable equity securities included in other assets
1,186

 
1,113

Equity method investments included in other assets
68

 
87

Total
$
19,462

 
$
22,863


(a)
Summary of Available-for-Sale Debt Investments
The following tables summarize our available-for-sale debt investments (in millions):
April 25, 2020
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. government securities
$
2,527

 
$
83

 
$
—

 
$
2,610

U.S. government agency securities
54

 
—

 
—

 
54

Corporate debt securities
12,291

 
172

 
(86
)
 
12,377

U.S. agency mortgage-backed securities
1,617

 
50

 
—

 
1,667

Commercial paper
1,272

 
—

 
—

 
1,272

Certificates of deposit
228

 
—

 
—

 
228

Total (1)
$
17,989

 
$
305

 
$
(86
)
 
$
18,208


July 27, 2019
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. government securities
$
808

 
$
1

 
$
(1
)
 
$
808

U.S. government agency securities
169

 
—

 
—

 
169

Corporate debt securities
19,188

 
103

 
(29
)
 
19,262

U.S. agency mortgage-backed securities
1,425

 
7

 
(11
)
 
1,421

Total
$
21,590

 
$
111

 
$
(41
)
 
$
21,660

(1) Net unsettled investment sales were $12 million as of April 25, 2020 and were included in other current assets.
The following table presents the gross realized gains and gross realized losses related to available-for-sale debt investments (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 25, 2020
 
April 27, 2019
 
April 25, 2020
 
April 27, 2019
Gross realized gains
$
20

 
$
7

 
$
45

 
$
10

Gross realized losses
(21
)
 
(14
)
 
(25
)
 
(28
)
Total
$
(1
)
 
$
(7
)
 
$
20

 
$
(18
)
The following tables present the breakdown of the available-for-sale debt investments with gross unrealized losses and the duration that those losses had been unrealized at April 25, 2020 and July 27, 2019 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
April 25, 2020
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
U.S. government securities 
$
26

 
$
—

 
$
—

 
$
—

 
$
26

 
$
—

U.S. government agency securities
10

 
—

 
—

 
—

 
10

 
—

Corporate debt securities
3,529

 
(86
)
 
23

 
—

 
3,552

 
(86
)
U.S. agency mortgage-backed securities
19

 
—

 
—

 
—

 
19

 
—

Commercial paper
1,013

 
—

 
—

 
—

 
1,013

 
—

Certificates of deposit
10

 
—

 
—

 
—

 
10

 
—

Total
$
4,607

 
$
(86
)
 
$
23

 
$
—

 
$
4,630

 
$
(86
)
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 27, 2019
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
U.S. government securities 
$
204

 
$
—

 
$
488

 
$
(1
)
 
$
692

 
$
(1
)
U.S. government agency securities
—

 
—

 
169

 
—

 
169

 
—

Corporate debt securities
2,362

 
(4
)
 
5,271

 
(25
)
 
7,633

 
(29
)
U.S. agency mortgage-backed securities
123

 
—

 
847

 
(11
)
 
970

 
(11
)
Total
$
2,689

 
$
(4
)
 
$
6,775

 
$
(37
)
 
$
9,464

 
$
(41
)

For available-for-sale debt investments that were in an unrealized loss position as of April 25, 2020, we have determined that no other-than-temporary impairments were required to be recognized.
The following table summarizes the maturities of our available-for-sale debt investments as of April 25, 2020 (in millions): 
 
Amortized Cost
 
Fair Value
Within 1 year
$
6,277

 
$
6,292

After 1 year through 5 years
8,014

 
8,065

After 5 years through 10 years
2,073

 
2,176

After 10 years
8

 
8

Mortgage-backed securities with no single maturity
1,617

 
1,667

Total
$
17,989

 
$
18,208


Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.
(b)
Summary of Equity Investments
Gains and losses recognized on our marketable and non-marketable equity securities are summarized below (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 25, 2020
 
April 27, 2019
 
April 25, 2020
 
April 27, 2019
Net gains and losses recognized during the period on equity investments
$
(7
)
 
$
3

 
$
71

 
$
78

Less: Net gains and losses recognized on equity investments sold
3

 
(44
)
 
(71
)
 
(51
)
Net unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date
$
(4
)
 
$
(41
)
 
$
—

 
$
27

We recorded adjustments to the carrying value of our non-marketable equity securities measured using the measurement alternative as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 25, 2020
 
April 27, 2019
 
April 25, 2020
 
April 27, 2019
Adjustments to non-marketable equity securities measured using the measurement alternative:
 
 
 
 
 
 
 
Upward adjustments
$
9

 
$
9

 
$
20

 
$
25

Downward adjustments, including impairments
(13
)
 
(4
)
 
(21
)
 
(22
)
Net adjustments
$
(4
)
 
$
5

 
$
(1
)
 
$
3


As of April 25, 2020 and July 27, 2019, we held equity interests in certain private equity funds of $0.7 billion and $0.6 billion, respectively, which are accounted for under the NAV practical expedient.
(c)
Variable Interest Entities
In the ordinary course of business, we have investments in privately held companies and provide financing to certain customers. These privately held companies and customers are evaluated for consolidation under the variable interest or voting interest entity models. We evaluate on an ongoing basis our investments in these privately held companies and our customer financings, and have determined that as of April 25, 2020, except as disclosed herein, there were no significant variable interest or voting interest entities required to be consolidated in our Consolidated Financial Statements.
As of April 25, 2020, the carrying value of investments in privately held companies was $1.3 billion. $691 million of such investments are considered to be in variable interest entities which are unconsolidated. We have total funding commitments of $344 million related to these privately held investments, some of which are based on the achievement of certain agreed-upon milestones, and some of which are required to be funded on demand. The carrying value of these investments and the additional funding commitments collectively represent our maximum exposure related to these privately held investments.