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Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Jul. 26, 2013

The following is a summary of our investments (in millions):


	July 26, 2013									April 26, 2013
			Gross Unrealized									Gross Unrealized
	Cost or Amortized Cost		Gains		Losses			Estimated Fair Value		Cost or Amortized Cost		Gains		Losses			Estimated Fair Value
Corporate bonds	$	2,836.7	$	9.1	$	(3.0	)	$	2,842.8	$	3,132.8	$	14.9	$	(0.6	)	$	3,147.1
U.S. Treasury and government debt securities		329.0		0.4		(0.1	)		329.3		392.8		0.9		0.0			393.7
Commercial paper		125.9		0.0		0.0			125.9		178.5		0.0		0.0			178.5
Certificates of deposit		135.0		0.1		0.0			135.1		135.4		0.1		0.0			135.5
Money market funds		323.2		0.0		0.0			323.2		1,463.1		0.0		0.0			1,463.1
Auction rate securities		44.2		0.5		(2.5	)		42.2		44.2		0.5		(2.7	)		42.0
Equity funds		29.9		0.0		0.0			29.9		28.3		0.0		0.0			28.3

Total debt and equity securities	$	3,823.9	$	10.1	$	(5.6	)	$	3,828.4	$	5,375.1	$	16.4	$	(3.3	)	$	5,388.2

Contractual Maturities of Debt Investments

The following table presents the contractual maturities of our debt investments as of July 26, 2013 (in millions):


	Amortized Cost		Fair Value
Due in one year or less	$	1,240.6	$	1,242.2
Due in one through five years		2,040.1		2,045.0
Due after ten years*		44.2		42.2

	$	3,324.9	$	3,329.4

*	Consists of auction rate securities (ARS) which have contractual maturities of greater than 10 years.

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of July 26, 2013 (in millions):


			Fair Value Measurements at Reporting Date Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Corporate bonds	$	2,842.8	$	0.0	$	2,842.8	$	0.0
U.S. Treasury and government debt securities		329.3		207.2		122.1		0.0
Commercial paper		125.9		0.0		125.9		0.0
Certificates of deposit		135.1		0.0		135.1		0.0
Money market funds		323.2		323.2		0.0		0.0
Auction rate securities		42.2		0.0		0.0		42.2
Equity funds		29.9		29.9		0.0		0.0
Foreign currency contracts		1.5		0.0		1.5		0.0

Total	$	3,829.9	$	560.3	$	3,227.4	$	42.2

Liabilities
Foreign currency contracts	$	2.2	$	0.0	$	2.2	$	0.0

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the balance sheet classifications of our financial assets and liabilities measured at fair value on a recurring basis as of July 26, 2013 (in millions):


			Fair Value Measurements at Reporting Date Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents	$	469.1	$	323.2	$	145.9	$	0.0
Short-term investments		3,287.2		207.2		3,080.0		0.0
Other current assets		3.8		2.3		1.5		0.0
Other non-current assets		69.8		27.6		0.0		42.2

Total	$	3,829.9	$	560.3	$	3,227.4	$	42.2

Liabilities
Other current liabilities	$	2.2	$	0.0	$	2.2	$	0.0

Quantitative Information About Level 3 Fair Value Measurements

Quantitative information about our Level 3 fair value measurements is as follows (fair value in millions):


	Fair Value as of July 26, 2013		Valuation Techniques	Unobservable Inputs	Range (Weighted average)

ARS	$	42.2	Discounted cash flow	Time-to-economic maturity	6.7 yrs – 11.2 yrs (8.3 yrs)
				Liquidity risk premium, market credit spread and other factors	1.7% - 2.9% (2.3%)
				Coupon rate	1.1% - 2.7% (1.5%)


			Market comparable securities	Discount rate	3.7% - 5.7% (4.9%)

Reconciliation of Beginning and Ending Balance of Level 3 Auction Rate Securities Measured at Fair Value on Recurring Basis

The table below provides a reconciliation of the beginning and ending balance of our Level 3 ARS measured at fair value on a recurring basis using significant unobservable inputs (in millions):


	Three Months Ended
	July 26, 2013		July 27, 2012
Balance at beginning of period	$	42.0	$	51.0
Total unrealized gains, net included in other comprehensive income (loss)		0.2		0.3
Settlements		0.0		(5.0	)

Balance at end of period	$	42.2	$	46.3

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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