Investments

The Company holds investments consisting primarily of marketable debt and equity securities. The carrying amount of cash and cash equivalents approximate fair value due to their short maturities.

Information regarding the Company’s investments at January 24, 2014 is as follows:



(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available-for-sale securities:
Corporate debt securities	$	5,484	$	45	$	(22	)	$	5,507
Auction rate securities	108		—		(12		)	96
Mortgage-backed securities	1,392		7		(9		)	1,390
U.S. government and agency securities	3,572		6		(38		)	3,540
Foreign government and agency securities	44		—		—			44
Certificates of deposit	6		—		—			6
Other asset-backed securities	656		1		(2		)	655
Debt funds	1,229		1		(61		)	1,169
Marketable equity securities	52		40		(4		)	88
Trading securities:
Exchange-traded funds	54		11		—			65
Cost method, equity method, and other investments	670		—		—			NA
Total	$	13,267	$	111	$	(148	)	$	12,560

Information regarding the Company’s investments at April 26, 2013 is as follows:



(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available-for-sale securities:
Corporate debt securities	$	4,587	$	78	$	(4	)	$	4,661
Auction rate securities	118		—		(15		)	103
Mortgage-backed securities	1,050		8		(5		)	1,053
U.S. government and agency securities	3,882		17		(1		)	3,898
Foreign government and agency securities	38		—		—			38
Certificates of deposit	6		—		—			6
Other asset-backed securities	539		2		—			541
Marketable equity securities	82		75		(2		)	155
Trading securities:
Exchange-traded funds	45		5		—			50
Cost method, equity method, and other investments	549		—		—			NA
Total	$	10,896	$	185	$	(27	)	$	10,505

Information regarding the Company’s condensed consolidated balance sheets presentation at January 24, 2014 and April 26, 2013 is as follows:



	January 24, 2014				April 26, 2013
(in millions)	Investments		Other Assets		Investments		Other Assets
Available-for-sale securities	$	12,298	$	197	$	10,161	$	294
Trading securities	65		—		50		—
Cost method, equity method, and other investments	—		670		—		549
Total	$	12,363	$	867	$	10,211	$	843

The following tables show the gross unrealized losses and fair value of the Company’s available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category as of January 24, 2014 and April 26, 2013:



	January 24, 2014
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate debt securities	$	1,578	$	(19	)	$	48	$	(3	)
Auction rate securities	—		—			96		(12		)
Mortgage-backed securities	741		(8		)	30		(1		)
U.S. government and agency securities	1,520		(38		)	—		—
Other asset-backed securities	268		(2		)	—		—
Debt funds	906		(61		)	—		—
Marketable equity securities	12		(4		)	—		—
Total	$	5,025	$	(132	)	$	174	$	(16	)



	April 26, 2013
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate debt securities	$	544	$	(1	)	$	13	$	(3	)
Auction rate securities	—		—			103		(15		)
Mortgage-backed securities	195		(1		)	44		(4		)
U.S. government and agency securities	291		(1		)	—		—
Marketable equity securities	14		(2		)	—		—
Total	$	1,044	$	(5	)	$	160	$	(22	)

Activity related to the Company’s investment portfolio is as follows:



	Three months ended
	January 24, 2014					January 25, 2013
(in millions)	Debt (a)			Equity (b)		Debt (a)			Equity (b)
Proceeds from sales	$	1,280		$	35	$	2,183		$	25
Gross realized gains	—			26		9			16
Gross realized losses	(3		)	—		(5		)	—
Impairment losses recognized	—			—		—			—



	Nine months ended
	January 24, 2014					January 25, 2013
(in millions)	Debt (a)			Equity (b)		Debt (a)			Equity (b)(c)
Proceeds from sales	$	5,515		$	91	$	8,073		$	90
Gross realized gains	6			59		51			52
Gross realized losses	(9		)	—		(12		)	—
Impairment losses recognized	—			—		—			(10		)

(a) Includes available-for-sale debt securities.

(b) Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments.

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 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.

As of January 24, 2014 and April 26, 2013, the credit loss portion of other-than-temporary impairments on debt securities was $4 million and $9 million, respectively. The total other-than-temporary impairment losses on available-for-sale debt securities for the three and nine months ended January 24, 2014 and January 25, 2013 were not significant.

The January 24, 2014 balance of available-for-sale debt securities, excluding debt funds which have no single maturity date, 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)	January 24, 2014
Due in one year or less	$	1,510
Due after one year through five years	6,802
Due after five years through ten years	2,798
Due after ten years	128
Total	$	11,238

As of January 24, 2014 and April 26, 2013, the aggregate carrying amount of equity and other securities without a quoted market price and accounted for using the cost or equity method was $670 million and $549 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 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 other comprehensive income (loss) in the condensed consolidated statements of comprehensive income 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.