Available-for-Sale Debt and Equity Investments

6 Months Ended

Jan. 29, 2022

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale Debt and Equity Investments

(a)Summary of Available-for-Sale Debt Investments

The following tables summarize our available-for-sale debt investments (in millions):


January 29, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized and Credit Losses		Fair Value
U.S. government securities	$	1,702	$	4	$	(19)	$	1,687
U.S. government agency securities	142		—		(2)		140
Corporate debt securities	9,008		82		(102)		8,988
U.S. agency mortgage-backed securities	2,569		10		(56)		2,523
Commercial paper	614		—		—		614
Certificates of deposit	209		—		—		209
Total	$	14,244	$	96	$	(179)	$	14,161


July 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized and Credit Losses		Fair Value
U.S. government securities	$	1,773	$	21	$	—	$	1,794
U.S. government agency securities	152		—		—		152
Non-U.S. government and agency securities	3		—		—		3
Corporate debt securities	8,727		213		(30)		8,910
U.S. agency mortgage-backed securities	2,838		34		(10)		2,862
Commercial paper	1,190		—		—		1,190
Certificates of deposit	295		—		—		295
Total	$	14,978	$	268	$	(40)	$	15,206

The following table presents the gross realized gains and gross realized losses related to available-for-sale debt investments (in millions):


	Three Months Ended				Six Months Ended
	January 29, 2022		January 23, 2021		January 29, 2022		January 23, 2021
Gross realized gains	$	13	$	9	$	19	$	24
Gross realized losses	(3)		—		(3)		—
Total	$	10	$	9	$	16	$	24

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 January 29, 2022 and July 31, 2021 (in millions):


	UNREALIZED LOSSES LESS THAN 12 MONTHS				UNREALIZED LOSSES 12 MONTHS OR GREATER				TOTAL
January 29, 2022	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. government securities	$	1,124	$	(19)	$	2	$	—	$	1,126	$	(19)
U.S. government agency securities	125		(1)		15		(1)		140		(2)
Corporate debt securities	4,230		(69)		182		(8)		4,412		(77)
U.S. agency mortgage-backed securities	1,881		(52)		91		(4)		1,972		(56)
Total	$	7,360	$	(141)	$	290	$	(13)	$	7,650	$	(154)


	UNREALIZED LOSSES LESS THAN 12 MONTHS				UNREALIZED LOSSES 12 MONTHS OR GREATER				TOTAL
July 31, 2021	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. government securities	$	468	$	—	$	—	$	—	$	468	$	—
U.S. government agency securities	26		—		—		—		26		—
Corporate debt securities	1,086		(5)		6		—		1,092		(5)
U.S. agency mortgage-backed securities	1,293		(10)		13		—		1,306		(10)
Commercial paper	37		—		—		—		37		—
Total	$	2,910	$	(15)	$	19	$	—	$	2,929	$	(15)

The following table summarizes the maturities of our available-for-sale debt investments as of January 29, 2022 (in millions):


	Amortized Cost		Fair Value
Within 1 year	$	3,512	$	3,496
After 1 year through 5 years	7,999		7,969
After 5 years through 10 years	162		171
After 10 years	2		2
Mortgage-backed securities with no single maturity	2,569		2,523
Total	$	14,244	$	14,161

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

We recognized a net unrealized loss of $18 million and $13 million during the second quarter and first six months of fiscal 2022, respectively, on our marketable securities still held as of the reporting date. Our net adjustments to non-marketable equity securities measured using the measurement alternative still held was a net gain of $14 million and $16 million for the second quarter and first six months of fiscal 2022, respectively. We held equity interests in certain private equity funds of $1.1 billion and $0.9 billion as of January 29, 2022 and July 31, 2021, respectively, which are accounted for under the NAV practical expedient.

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 January 29, 2022, there were no significant variable interest or voting interest entities required to be consolidated in our Consolidated Financial Statements.

The carrying value of our investments in privately held companies was $1.8 billion and $1.5 billion as of January 29, 2022 and July 31, 2021, respectively. Of the total carrying value of our investments in privately held companies as of January 29, 2022, $1.1 billion of such investments are considered to be in variable interest entities which are unconsolidated. As of January 29, 2022, we have total funding commitments of $0.4 billion related to privately held investments, some of which may be based on the achievement of certain agreed-upon milestones or 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 privately held investments.