Investments (Tables)

9 Months Ended

Jan. 25, 2013

Information Regarding Short-term and Long-term Investments

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 Available-for-sale and Trading Securities

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

Gross Unrealized Losses and Fair Values of 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

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	)

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.

Credit Loss Portion of Other-than-temporary Impairments on Debt Securities Held by the Company

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

Schedule of Available-for-sale Securities Contractual Maturities



(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

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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