Fair Value of Financial Assets and Liabilities

9 Months Ended

Oct. 25, 2015

Notes to financial statements [Abstract]

Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

We measure our cash equivalents and marketable securities at fair value. The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. Our Level 1 assets consist of our money market funds. We classify securities within Level 1 assets when the fair value is obtained from real time quotes for transactions in active exchange markets involving identical assets. Our available-for-sale securities are classified as having Level 2 inputs. Our Level 2 assets are valued utilizing a market approach where the market prices of similar assets are provided by a variety of independent industry standard data providers to our investment custodian. We review the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. There were no significant transfers between Levels 1 and 2 assets for the three and nine months ended October 25, 2015.

		Fair Value at
	Pricing Category	October 25, 2015		January 25, 2015
		(In millions)
Assets
Cash equivalents and Marketable securities
Corporate debt securities (1)	Level 2	$	1,975	$	2,186
Debt securities of U.S. government agencies (2)	Level 2	$	995	$	750
Debt securities issued by the U.S. Treasury (3)	Level 2	$	555	$	537
Asset-backed securities (4)	Level 2	$	472	$	453
Mortgage-backed securities issued by government-sponsored enterprises (3)	Level 2	$	243	$	278
Foreign government bonds (3)	Level 2	$	83	$	85
Money market funds (5)	Level 1	$	30	$	132
Liabilities
Other noncurrent liabilities
Interest rate swap (6)	Level 2	$	3	$	—
1.00% Convertible Senior Notes Due 2018 (7)	Level 2	$	2,198	$	1,680

(1) Includes $51 million and $147 million in cash equivalents as of October 25, 2015 and January 25, 2015, respectively, and $1.9 billion and $2.0 billion in marketable securities as of October 25, 2015 and January 25, 2015, respectively, on the Condensed Consolidated Balance Sheets.

(2) Includes $14 million and $15 million in cash equivalents as of October 25, 2015 and January 25, 2015, respectively, and $981 million and $735 million in marketable securities as of October 25, 2015 and January 25, 2015, respectively, on the Condensed Consolidated Balance Sheets.

(3) In marketable securities on the Condensed Consolidated Balance Sheets.

(4) Includes $1 million in cash equivalents as of October 25, 2015 and $471 million and $453 million in marketable securities as of October 25, 2015 and January 25, 2015, respectively, on the Condensed Consolidated Balance Sheets.

(5) In cash equivalents on the Condensed Consolidated Balance Sheets.

(6) Please refer to Note 9 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our interest rate swap.

(7) The Notes are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount, and are not marked to fair value each period. See Note 11 for additional information on the Notes.