Investments

Marketable Securities

At October 31, 2018, marketable securities consisted of the following (in millions):



Investments classified as Marketable Securities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Corporate notes and obligations	$	809	$	0	$	(10	)	$	799
U.S. treasury securities	90		0		(2		)	88
Mortgage backed obligations	86		0		(1		)	85
Asset backed securities	190		0		(2		)	188
Municipal securities	76		0		(1		)	75
Foreign government obligations	51		0		(1		)	50
U.S. agency obligations	4		0		0			4
Covered bonds	57		0		(1		)	56
Total marketable securities	$	1,363	$	0	$	(18	)	$	1,345

At January 31, 2018, marketable securities consisted of the following (in millions):



Investments classified as Marketable Securities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Corporate notes and obligations	$	1,223	$	1	$	(7	)	$	1,217
U.S. treasury securities	196		0		(2		)	194
Mortgage backed obligations	100		0		(1		)	99
Asset backed securities	251		0		(1		)	250
Municipal securities	53		0		(1		)	52
Foreign government obligations	87		0		(1		)	86
U.S. agency obligations	19		0		0			19
Commercial paper	11		0		0			11
Covered bonds	51		0		(1		)	50
Total marketable securities	$	1,991	$	1	$	(14	)	$	1,978

The contractual maturities of the investments classified as marketable securities are as follows (in millions):



	As of
	October 31, 2018		January 31, 2018
Due within 1 year	$	286	$	395
Due in 1 year through 5 years	1,057		1,579
Due in 5 years through 10 years	2		4
	$	1,345	$	1,978

As of October 31, 2018, the following marketable securities were in an unrealized loss position (in millions):



	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate notes and obligations	$	489	$	(6	)	$	268	$	(4	)	$	757	$	(10	)
U.S. treasury securities	36		(1		)	52		(1		)	88		(2		)
Mortgage backed obligations	0		0			42		(1		)	42		(1		)
Asset backed securities	114		(1		)	65		(1		)	179		(2		)
Municipal securities	0		0			19		(1		)	19		(1		)
Foreign government obligations	0		0			38		(1		)	38		(1		)
Covered bonds	48		(1		)	0		0			48		(1		)
	$	687	$	(9	)	$	484	$	(9	)	$	1,171	$	(18	)

The unrealized losses for each of the fixed rate marketable securities were less than $1 million. The Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of October 31, 2018, such as the Company's intent to hold and whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment's amortized basis. The Company expects to receive the full principal and interest on all of these marketable securities.

Investment Income

Investment income consists of interest income, realized gains and realized losses on the Company’s cash, cash equivalents and marketable securities. The components of investment income are presented below (in millions):



	Three Months Ended October 31,				Nine Months Ended October 31,
	2018		2017		2018			2017
Interest income	$	13	$	10	$	45		$	24
Realized gains	0		0		1			1
Realized losses	0		0		(5		)	(1		)
Investment income	$	13	$	10	$	41		$	24

Strategic Investments

Strategic investments by form and measurement category as of October 31, 2018 were as follows (in millions):



	Measurement Category
	Fair Value		Measurement Alternative		Other (1)		Total
Equity securities	$	480	$	711	$	36	$	1,227
Debt securities	0		0		24		24
Balance as of October 31, 2018	$	480	$	711	$	60	$	1,251

(1) Other includes the Company's investments accounted for under the equity method of accounting or amortized cost.

Measurement Alternative Adjustments

Privately held equity securities accounted for under the measurement alternative as of October 31, 2018 were as follows (in millions):



	Three Months Ended October 31, 2018			Nine Months Ended October 31, 2018
Carrying amount, beginning of period	$	667		$	548
Adjustments related to privately held equity securities:
Net additions	25			55
Impairments and downward adjustments	(1		)	(24		)
Upward adjustments	20			132
Carrying amount, end of period	$	711		$	711

Gains (losses) on strategic investments, net

Gains and losses recognized in the three and nine months ended October 31, 2018 and 2017 were as follows (in millions):



3	Three Months Ended October 31,					Nine Months Ended October 31,
	2018			2017		2018			2017
Net gains (losses) recognized on publicly traded securities	$	(14	)	$	0	$	262		$	0
Net gains (losses) recognized on privately held securities	18			1		99			(4		)
Net gains recognized on sales of equity securities	$	59		$	0	$	68		$	0
Net gains (losses) recognized on debt securities	$	0		$	0	$	(12	)	$	0
Gains (losses) on strategic investments, net	$	63		$	1	$	417		$	(4	)

Net gains recognized in the three and nine months ended October 31, 2018 for investments still held as of October 31, 2018 were $4 million and $348 million, respectively. This excludes recognized gains on the sale of investments for the three and nine months ended October 31, 2018 of $59 million and $69 million, respectively.