Financial Instruments

12 Months Ended

Apr. 29, 2022

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. 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 April 29, 2022 and April 30, 2021:


	April 29, 2022
	Valuation								Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses		Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	533	$	1	$	(15)	$	518	$	518	$	—
Level 2:
Corporate debt securities	4,457		4		(140)		4,321		4,321		—
U.S. government and agency securities	910		—		(41)		869		869		—
Mortgage-backed securities	592		—		(35)		558		558		—
Non-U.S. government and agency securities	17		—		—		17		17		—
Certificates of deposit	20		—		—		20		20
Other asset-backed securities	567		—		(11)		556		556		—
Total Level 2	6,563		4		(227)		6,341		6,341		—
Level 3:
Auction rate securities	36		—		(3)		33		—		33
Total available-for-sale debt securities	$	7,131	$	5	$	(245)	$	6,893	$	6,859	$	33


	April 30, 2021
	Valuation								Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses		Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	505	$	26	$	(3)	$	528	$	528	$	—
Level 2:
Corporate debt securities	4,557		103		(13)		4,647		4,647		—
U.S. government and agency securities	810		—		(7)		804		804		—
Mortgage-backed securities	645		21		(16)		650		650		—
Non-U.S. government and agency securities	31		1		—		33		33		—
Certificates of deposit	19		—		—		19		19		—
Other asset-backed securities	534		4		(1)		537		537		—
Debt funds	7		—		—		7		7		—
Total Level 2	6,603		129		(36)		6,696		6,696		—
Level 3:
Auction rate securities	36		—		(3)		33		—		33
Total available-for-sale debt securities	$	7,144	$	155	$	(42)	$	7,257	$	7,224	$	33

The amortized cost of debt securities excludes accrued interest, which is reported in other current assets in the consolidated balance sheets.

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 April 29, 2022 and April 30, 2021:


	April 29, 2022
	Less than 12 months				More than 12 months
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government and agency securities	$	—	$	—	$	945	$	(56)
Corporate debt securities	222		(1)		2,993		(139)
Mortgage-backed securities	—		—		507		(35)
Other asset-backed securities	—		—		526		(11)
Auction rate securities	—		—		33		(3)
Total	$	222	$	(1)	$	5,004	$	(244)


	April 30, 2021
	Less than 12 months				More than 12 months
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government and agency securities	$	946	$	(10)	$	—	$	—
Corporate debt securities	—		—		3,209		(13)
Mortgage-backed securities	—		—		650		(16)
Other asset-backed securities	—		—		531		(1)
Auction rate securities	—		—		33		(3)
Total	$	946	$	(10)	$	4,423	$	(32)

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. There were no transfers into or out of Level 3 during the fiscal years ended April 29, 2022 and April 30, 2021. 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.

Activity related to the Company’s available-for-sale debt securities portfolio is as follows:


(in millions)	April 29, 2022		April 30, 2021		April 24, 2020
Proceeds from sales and maturities	$	9,611	$	10,420	$	9,559
Gross realized gains	15		15		25
Gross realized losses	(18)		(14)		(22)

During the fiscal year ended April 30, 2021, the Company had proceeds from maturities of investments classified as held to maturity of $911 million.

The April 29, 2022 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)	April 29, 2022
Due in one year or less	$	1,501
Due after one year through five years	3,465
Due after five years through ten years	1,271
Due after ten years	656
Total debt securities	$	6,893

Equity Securities, Equity Method Investments, and Other Investments

The Company holds investments in equity securities with readily determinable fair values, equity investments without readily determinable fair values, investments accounted for under the equity method, and other investments. Equity securities with readily determinable fair values are included in Level 1 of the fair value hierarchy, as they are measured using quoted market prices. 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 April 29, 2022 and April 30, 2021, which are classified as other assets in the consolidated balance sheets:


(in millions)	April 29, 2022		April 30, 2021
Investments with readily determinable fair value (marketable equity securities)	$	64	$	74
Investments without readily determinable fair values	732		537
Equity method and other investments	85		76
Total equity and other investments	$	881	$	687

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.


(in millions)	April 29, 2022		April 30, 2021		April 24, 2020
Proceeds from sales	$	81	$	13	$	15
Gross gains	99		68		17
Gross losses	(52)		(3)		(30)
Impairment losses recognized	(17)		(4)		(4)

During the fiscal year ended April 29, 2022, there were $8 million of net unrealized gains on equity securities and other investments still held at April 29, 2022. During the fiscal year ended April 30, 2021, there were $63 million of net unrealized gains on equity securities and other investments still held at April 30, 2021.