Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Jul. 25, 2014

Summary of Investments

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

	July 25, 2014									April 25, 2014
			Gross Unrealized									Gross Unrealized
	Cost or Amortized Cost		Gains		Losses			Estimated Fair Value		Cost or Amortized Cost		Gains		Losses			Estimated Fair Value
Corporate bonds	$	1,905.8	$	8.5	$	(0.4	)	$	1,913.9	$	2,142.3	$	10.5	$	(0.5	)	$	2,152.3
U.S. Treasury and government debt securities		227.1		0.3		(0.1	)		227.3		263.4		0.3		(0.1	)		263.6
Commercial paper		174.5		0.0		0.0			174.5		168.4		0.0		0.0			168.4
Certificates of deposit		370.3		0.0		0.0			370.3		245.0		0.0		0.0			245.0
Auction rate securities		26.9		0.0		(0.5	)		26.4		36.9		0.0		(0.9	)		36.0
Equity funds		33.5		0.0		0.0			33.5		32.7		0.0		0.0			32.7
Total debt and equity securities	$	2,738.1	$	8.8	$	(1.0	)	$	2,745.9	$	2,888.7	$	10.8	$	(1.5	)	$	2,898.0

Contractual Maturities of Debt Investments

The following table presents the contractual maturities of our debt investments as of July 25, 2014 (in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	1,413.8	$	1,416.2
Due in two through five years		1,263.9		1,269.8
Due after ten years*		26.9		26.4
	$	2,704.6	$	2,712.4

* Consists of auction rate securities (ARSs) 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 (in millions):

	July 25, 2014
				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	$	1,913.9		$	0.0	$	1,913.9		$	0.0
U.S. Treasury and government debt securities		227.3			161.9		65.4			0.0
Commercial paper		174.5			0.0		174.5			0.0
Certificates of deposit		370.3			0.0		370.3			0.0
Auction rate securities		26.4			0.0		0.0			26.4
Equity funds		33.5			33.5		0.0			0.0
Foreign currency contracts		3.2			0.0		3.2			0.0
Total	$	2,749.1		$	195.4	$	2,527.3		$	26.4
Liabilities
Foreign currency contracts	$	(0.7	)	$	0.0	$	(0.7	)	$	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 (in millions):

	July 25, 2014
				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	$	153.4		$	0.0	$	153.4		$	0.0
Short-term investments		2,532.6			161.9		2,370.7			0.0
Other current assets		8.4			5.2		3.2			0.0
Other non-current assets		54.7			28.3		0.0			26.4
Total	$	2,749.1		$	195.4	$	2,527.3		$	26.4
Liabilities
Other current liabilities	$	(0.7	)	$	0.0	$	(0.7	)	$	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):

	Estimated Fair Value as of July 25, 2014		Valuation Techniques	Unobservable Inputs	Range                  (Weighted average)
ARSs	$	26.4	Discounted cash flow	Time-to-economic maturity	6.7 yrs. – 9.4 yrs. (7.5 yrs.)
				Illiquidity premium	1.3% – 1.8% (1.5%)
				Coupon rate	1.1% – 1.8% (1.4%)
			Market comparable securities	Discount rate	1.0% – 2.0% (1.3%)

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 ARSs measured at fair value on a recurring basis using significant unobservable inputs (in millions).

	Three Months Ended
	July 25, 2014			July 26, 2013
Balance at beginning of period	$	36.0		$	42.0
Total unrealized gains, net included in other comprehensive income (loss)		0.4			0.2
Sales		(10.0	)		0.0
Balance at end of period	$	26.4		$	42.2