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Financial Instruments
 3 Months Ended
Jul. 26, 2019
Investments [Abstract]  
Financial Instruments Financial Instruments
Debt Securities
The Company holds investments in marketable debt securities that are classified and accounted for as available-for-sale and are remeasured on a recurring basis. For information regarding the valuation techniques and inputs used in the fair value measurements, refer to Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 26, 2019.
The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at July 26, 2019 and April 26, 2019:    
 
July 26, 2019
 
Valuation
 
Balance Sheet Classification
(in millions)
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
Investments
 
Other Assets
Level 1:
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
$
549

 
$
8

 
$
—

 
$
557

 
$
557

 
$
—

Level 2:
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities
3,123

 
30

 
(13
)
 
3,140

 
3,140

 
—

U.S. government and agency securities
788

 
—

 
(2
)
 
786

 
786

 
—

Mortgage-backed securities
578

 
8

 
(14
)
 
572

 
572

 
—

Non-U.S. government and agency securities
11

 
—

 
—

 
11

 
11

 
—

Other asset-backed securities
537

 
3

 
(3
)
 
537

 
537

 
—

Total Level 2
5,037

 
41

 
(32
)
 
5,046

 
5,046

 
—

Level 3:
 
 
 
 
 
 
 
 
 
 
 
Auction rate securities
47

 
—

 
(3
)
 
44

 
—

 
44

Total available-for-sale debt securities
$
5,633

 
$
49

 
$
(35
)
 
$
5,647

 
$
5,603

 
$
44

 
April 26, 2019
 
Valuation
 
Balance Sheet Classification
(in millions)
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
Investments
 
Other Assets
Level 1:
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
$
529

 
$
1

 
$
(7
)
 
$
523

 
$
523

 
$
—

Level 2:
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities
3,500

 
14

 
(21
)
 
3,493

 
3,493

 
—

U.S. government and agency securities
387

 
1

 
(7
)
 
381

 
381

 
—

Mortgage-backed securities
537

 
3

 
(20
)
 
520

 
520

 
—

Non-U.S. government and agency securities
11

 
—

 
—

 
11

 
11

 
—

Other asset-backed securities
529

 
1

 
(3
)
 
527

 
527

 
—

Total Level 2
4,964

 
19

 
(51
)
 
4,932

 
4,932

 
—

Level 3:
 
 
 
 
 
 
 
 
 
 
 
Auction rate securities
47

 
—

 
(3
)
 
44

 
—

 
44

Total available-for-sale debt securities
$
5,540

 
$
20

 
$
(61
)
 
$
5,499

 
$
5,455

 
$
44


The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category at July 26, 2019 and April 26, 2019:
 
July 26, 2019
 
Less than 12 months
 
More than 12 months
(in millions)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
U.S. government and agency securities
$
62

 
$
—

 
$
311

 
$
(2
)
Corporate debt securities
535

 
(8
)
 
371

 
(5
)
Mortgage-backed securities
79

 
(1
)
 
113

 
(13
)
Non-U.S. government and agency securities
3

 
—

 
—

 
—

Other asset-backed securities
193

 
(2
)
 
112

 
(1
)
Auction rate securities
—

 
—

 
44

 
(3
)
Total
$
872

 
$
(11
)
 
$
951

 
$
(24
)
 
April 26, 2019
 
Less than 12 months
 
More than 12 months
(in millions)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
U.S. government and agency securities
$
130

 
$
(1
)
 
$
649

 
$
(13
)
Corporate debt securities
582

 
(5
)
 
1,153

 
(16
)
Mortgage-backed securities
73

 
(1
)
 
250

 
(19
)
Other asset-backed securities
290

 
(2
)
 
85

 
(1
)
Auction rate securities
—

 
—

 
44

 
(3
)
Total
$
1,075

 
$
(9
)
 
$
2,181

 
$
(52
)

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the three months ended July 26, 2019 and July 27, 2018. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.
There were no purchases, sales, settlements, or gains or losses recognized in earnings or other comprehensive income for available-for-sale securities classified as Level 3 during the three months ended July 26, 2019 and July 27, 2018.
Activity related to the Company’s debt securities portfolio is as follows:
 
Three months ended
(in millions)
July 26, 2019
 
July 27, 2018
Proceeds from sales
$
1,567

 
$
1,112

Gross realized gains
4

 
6

Gross realized losses
(8
)
 
(7
)

Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed securities and auction rate securities and the amortized cost of these securities. Based on the Company’s assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which the Company is invested, the Company believes it has recognized all necessary other-than-temporary impairments, as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of the amortized cost.
At July 26, 2019 and April 26, 2019, the credit loss portion of other-than-temporary impairments on debt securities was not significant. No available for sale securities were sold for significantly less than carrying value during the three months ended July 26, 2019 and July 27, 2018.
The July 26, 2019 balance of available-for-sale debt securities by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
(in millions)
July 26, 2019
Due in one year or less
$
1,157

Due after one year through five years
2,407

Due after five years through ten years
2,030

Due after ten years
53

Total
$
5,647


Equity Securities, Equity Method Investments, and Other Investments
The Company holds investments in equity securities without readily determinable fair values, investments accounted for under the equity method, and other investments. Equity method investments and investments without readily determinable fair values are included within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. To determine the fair value of these investments, the Company uses all pertinent financial information available related to the investees, including financial statements, market participant valuations from recent and proposed equity offerings, and other third-party data.
The following table summarizes the Company's equity and other investments at July 26, 2019 and April 26, 2019, which are classified as other assets in the consolidated balance sheets:
(in millions)
 
July 26, 2019
 
April 26, 2019
Investments without readily determinable fair values
 
$
308

 
$
308

Equity method and other investments
 
64

 
64

Total equity and other investments
 
$
372

 
$
372


The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating income, net in the consolidated statements of income.    
 
 
Three months ended
(in millions)
 
July 26, 2019
 
July 27, 2018
Proceeds from sales
 
$
2

 
$
908

Gross gains
 
—

 
114

Gross losses
 
—

 
(16
)
Recognized impairment losses
 
(1
)
 
—


There were no realized or unrealized losses recognized during the three months ended July 26, 2019. Net gains recognized during the three months ended July 27, 2018 were $98 million, comprised of $45 million of net realized gains on equity investments sold during the period and $53 million of net unrealized gains on equity and other investments held at July 27, 2018. The Company did not recognize any significant impairment charges related to equity investments during the three months ended July 26, 2019 and July 27, 2018.