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Investments
 9 Months Ended
Jan. 25, 2013
Investments [Abstract]  
Investments
Investments
The Company holds short-term and long-term investments, which consist primarily of marketable debt and equity securities.
Information regarding the Company’s short-term and long-term investments at January 25, 2013 is as follows:
(in millions)
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Available-for-sale securities:
 

 
 

 
 

 
 

Corporate debt securities
$
4,171

 
$
60

 
$
(7
)
 
$
4,224

Auction rate securities
153

 
—

 
(19
)
 
134

Mortgage-backed securities
1,050

 
8

 
(8
)
 
1,050

U.S. government and agency securities
3,755

 
11

 
(3
)
 
3,763

Foreign government and agency securities
34

 
—

 
—

 
34

Certificates of deposit
6

 
—

 
—

 
6

Other asset-backed securities
504

 
4

 
—

 
508

Marketable equity securities
117

 
123

 
(7
)
 
233

Trading securities:
 

 
 

 
 

 
 

Exchange-traded funds
45

 
4

 
—

 
49

Cost method, equity method, and other investments
486

 
—

 
—

 
486

Total short-term and long-term investments
$
10,321

 
$
210

 
$
(44
)
 
$
10,487

Information regarding the Company’s short-term and long-term investments at April 27, 2012 is as follows:
(in millions)
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Available-for-sale securities:
 

 
 

 
 

 
 

Corporate debt securities
$
3,501

 
$
47

 
$
(7
)
 
$
3,541

Auction rate securities
153

 
—

 
(26
)
 
127

Mortgage-backed securities
840

 
9

 
(10
)
 
839

U.S. government and agency securities
3,046

 
38

 
—

 
3,084

Foreign government and agency securities
67

 
—

 
—

 
67

Certificates of deposit
47

 
—

 
—

 
47

Other asset-backed securities
535

 
3

 
(1
)
 
537

Marketable equity securities
100

 
158

 
(5
)
 
253

Trading securities:
 

 
 

 
 

 
 

Exchange-traded funds
45

 
2

 
(1
)
 
46

Cost method, equity method, and other investments
508

 
—

 
—

 
508

Total short-term and long-term investments
$
8,842

 
$
257

 
$
(50
)
 
$
9,049


Information regarding the Company’s available-for-sale and trading securities at January 25, 2013 and April 27, 2012 is as follows:
 
January 25, 2013
 
April 27, 2012
(in millions)
Short-term
 
Long-term
 
Short-term
 
Long-term
Available-for-sale securities
$
1,166

 
$
8,786

 
$
1,344

 
$
7,151

Trading securities
—

 
49

 
—

 
46

Total
$
1,166

 
$
8,835

 
$
1,344

 
$
7,197


The following tables show the gross unrealized losses and fair values of the Company’s available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category as of January 25, 2013 and April 27, 2012:
 
January 25, 2013
 
Less than 12 months
 
More than 12 months
(in millions)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate debt securities
$
1,038

 
$
(4
)
 
$
23

 
$
(3
)
Auction rate securities
—

 
—

 
134

 
(19
)
Mortgage-backed securities
459

 
(3
)
 
54

 
(5
)
U.S. government and agency securities
1,459

 
(3
)
 
—

 
—

Other asset-backed securities
37

 
—

 
2

 
—

Marketable equity securities
13

 
(7
)
 
—

 
—

Total
$
3,006

 
$
(17
)
 
$
213

 
$
(27
)
 
April 27, 2012
 
Less than 12 months
 
More than 12 months
(in millions)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate debt securities
$
664

 
$
(4
)
 
$
16

 
$
(3
)
Auction rate securities
—

 
—

 
127

 
(26
)
Mortgage-backed securities
218

 
(2
)
 
57

 
(8
)
Other asset-backed securities
55

 
—

 
9

 
(1
)
Marketable equity securities
24

 
(5
)
 
—

 
—

Total
$
961

 
$
(11
)
 
$
209

 
$
(38
)

At January 25, 2013, the Company concluded that the unrealized losses associated with the available-for-sale securities detailed above were not other-than-temporary 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 basis.
Activity related to the Company’s short-term and long-term investment portfolio is as follows:
 
Three months ended
 
January 25, 2013
 
January 27, 2012
(in millions)
Debt (a)
 
Equity (b)
 
Debt (a)
 
Equity (b)
Proceeds from sales
$
1,506

 
$
25

 
$
1,486

 
$
28

Gross realized gains
9

 
16

 
21

 
17

Gross realized losses
(5
)
 
—

 
(6
)
 
—

Impairment losses recognized
—

 
—

 
(1
)
 
—

 
Nine months ended
 
January 25, 2013
 
January 27, 2012
(in millions)
Debt (a)
 
Equity (b)
 
Debt (a)
 
Equity (b)(c)
Proceeds from sales
$
6,306

 
$
90

 
$
4,453

 
$
81

Gross realized gains
51

 
52

 
45

 
72

Gross realized losses
(12
)
 
—

 
(13
)
 
—

Impairment losses recognized
—

 
(10
)
 
(2
)
 
(4
)
(a) Includes available-for-sale debt securities.
(b) Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments.
(c) As a result of the Salient and PEAK acquisitions, the Company recognized a non-cash gain of $38 million during the nine months ended January 27, 2012 on its previously held minority investments.
The total other-than-temporary impairment losses on available-for-sale debt securities for the three and nine months ended January 25, 2013 were not significant. The total other-than-temporary impairment losses on available-for-sale debt securities for the three and nine months ended January 27, 2012 were $2 million and $5 million, respectively, of which $1 million and $3 million, respectively, were recognized in other comprehensive income and less than $1 million and $2 million, respectively, were recognized in earnings. These charges relate to credit losses on certain mortgage-backed securities and other asset-backed securities. The amount of credit losses represents the difference between the present value of cash flows expected to be collected on these securities and the amortized cost. 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 invested, the Company believes it has recorded 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.
The following tables show the credit loss portion of other-than-temporary impairments on debt securities held by the Company as of the dates indicated and the corresponding changes in such amounts:
 
Three months ended
(in millions)
January 25, 2013
 
January 27, 2012
Beginning Balance
$
20

 
$
20

Additional credit losses recognized on securities previously impaired
—

 
1

Credit losses recognized on securities previously not impaired
—

 
—

Reductions for securities sold during the period
(2
)
 
—

Ending Balance
$
18

 
$
21

 
Nine months ended
(in millions)
January 25, 2013
 
January 27, 2012
Beginning Balance
$
20

 
$
20

Additional credit losses recognized on securities previously impaired
—

 
1

Credit losses recognized on securities previously not impaired
—

 
1

Reductions for securities sold during the period
(2
)
 
(1
)
Ending Balance
$
18

 
$
21


The January 25, 2013 balance of available-for-sale debt securities by contractual maturity is shown in the following table at fair value. 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)
January 25,
2013
Due in one year or less
$
1,681

Due after one year through five years
6,898

Due after five years through ten years
1,010

Due after ten years
130

Total debt securities
$
9,719


As of January 25, 2013 and April 27, 2012, the aggregate carrying amount of equity and other securities without a quoted market price and accounted for using the cost or equity method was $486 million and $508 million, respectively. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment.
Gains and losses realized on trading securities and available-for-sale debt securities are recorded in interest expense, net in the condensed consolidated statements of earnings. Gains and losses realized on marketable equity securities, cost method, equity method, and other investments are recorded in other expense, net in the condensed consolidated statements of earnings. In addition, unrealized gains and losses on available-for-sale debt securities are recorded in accumulated other comprehensive loss in the condensed consolidated balance sheets and unrealized gains and losses on trading securities are recorded in interest expense, net in the condensed consolidated statements of earnings. Gains and losses from the sale of investments are calculated based on the specific identification method.