Fair Value

12 Months Ended

Jul. 30, 2022

(a)Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis were as follows (in millions):


	JULY 30, 2022						JULY 31, 2021
	FAIR VALUE MEASUREMENTS						FAIR VALUE MEASUREMENTS
	Level 1		Level 2		Total Balance		Level 1		Level 2		Total Balance
Assets:
Cash equivalents:
Money market funds	$	3,930	$	—	$	3,930	$	5,694	$	—	$	5,694
Commercial paper	—		72		72		—		114		114
Certificates of deposit	—		32		32		—		—		—
U.S. government securities	—		12		12		—		300		300
Corporate debt securities	—		1		1		—		—		—
Available-for-sale debt investments:
U.S. government securities	—		1,238		1,238		—		1,794		1,794
U.S. government agency securities	—		138		138		—		152		152
Non-U.S. government and agency securities	—		272		272		—		3		3
Corporate debt securities	—		7,818		7,818		—		8,910		8,910
U.S. agency mortgage-backed securities	—		1,976		1,976		—		2,862		2,862
Commercial paper	—		255		255		—		1,190		1,190
Certificates of deposit	—		250		250		—		295		295
Equity investments:
Marketable equity securities	241		—		241		137		—		137
Other assets:
Money market funds	1,500		—		1,500		750		—		750
Derivative assets	—		78		78		—		126		126
Total	$	5,671	$	12,142	$	17,813	$	6,581	$	15,746	$	22,327
Liabilities:
Derivative liabilities	$	—	$	89	$	89	$	—	$	20	$	20
Total	$	—	$	89	$	89	$	—	$	20	$	20

(b)Assets Measured at Fair Value on a Nonrecurring Basis

Our non-marketable equity securities using the measurement alternative are adjusted to fair value on a non-recurring basis. Adjustments are made when observable transactions for identical or similar investments of the same issuer occur, or due to impairment. These securities are classified as Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs such as volatility, rights, and obligations of the securities we hold.

The fair value for purchased intangibles assets measured at fair value on a nonrecurring basis was categorized as Level 3 due to the use of significant unobservable inputs in the valuation. Significant unobservable inputs that were used included expected revenues and net income related to the assets and the expected life of the assets. The difference between the estimated fair value and the carrying value of the assets was recorded as an impairment charge, which was included in product cost of sales and operating expenses as applicable. See Note 5.

(c)Other Fair Value Disclosures

The fair value of our short-term loan receivables and financed service contracts approximates their carrying value due to their short duration. The aggregate carrying value of our long-term loan receivables and financed service contracts as of July 30, 2022 and July 31, 2021 was $3.4 billion and $4.0 billion, respectively. The estimated fair value of our long-term loan receivables and financed service contracts approximates their carrying value. We use unobservable inputs in determining

discounted cash flows to estimate the fair value of our long-term loan receivables and financed service contracts, and therefore they are categorized as Level 3.As of July 30, 2022 and July 31, 2021, the estimated fair value of our short-term debt approximates its carrying value due to the short maturities. As of July 30, 2022, the fair value of our senior notes was $9.7 billion, with a carrying amount of $8.9 billion. This compares to a fair value of $13.7 billion and a carrying amount of $11.5 billion as of July 31, 2021. The fair value of the senior notes was determined based on observable market prices in a less active market and was categorized as Level 2 in the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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