XML 103 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investments
 12 Months Ended
Apr. 25, 2014
Investments [Abstract]  
Investments
Investments
The Company holds investments consisting primarily of marketable debt and equity securities.
Information regarding the Company’s investments at April 25, 2014 is as follows:
(in millions)
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Available-for-sale securities:
 

 
 

 
 

 
 

Corporate debt securities
$
5,504

 
$
55

 
$
(17
)
 
$
5,542

Auction rate securities
109

 
—

 
(12
)
 
97

Mortgage-backed securities
1,337

 
7

 
(8
)
 
1,336

U.S. government and agency securities
3,138

 
7

 
(29
)
 
3,116

Foreign government and agency securities
67

 
—

 
—

 
67

Certificates of deposit
54

 
—

 
—

 
54

Other asset-backed securities
540

 
2

 
—

 
542

Debt funds
2,143

 
9

 
(29
)
 
2,123

Marketable equity securities
47

 
15

 
(13
)
 
49

Trading securities:
 

 
 

 
 

 
 

Exchange-traded funds
54

 
13

 
—

 
67

Cost method, equity method, and other investments
666

 
—

 
—

 
NA

Total investments
$
13,659

 
$
108

 
$
(108
)
 
$
12,993


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 investments
$
10,896

 
$
185

 
$
(27
)
 
$
10,505


Information regarding the Company’s consolidated balance sheets presentation at April 25, 2014 and April 26, 2013 is as follows:
 
April 25, 2014
 
April 26, 2013
(in millions)
Investments
 
Other Assets
 
Investments
 
Other Assets
Available-for-sale securities
$
12,771

 
$
155

 
$
10,161

 
$
294

Trading securities
67

 
—

 
50

 
—

Cost method, equity method, and other investments
—

 
666

 
—

 
549

Total
$
12,838

 
$
821

 
$
10,211

 
$
843


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, aggregated by investment category as of April 25, 2014 and April 26, 2013:
 
April 25, 2014
 
Less than 12 Months
 
More than 12 Months
(in millions)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate debt securities
$
1,601

 
$
(14
)
 
$
50

 
$
(3
)
Auction rate securities
—

 
—

 
97

 
(12
)
Mortgage-backed securities
682

 
(7
)
 
28

 
(1
)
U.S. government and agency securities
1,500

 
(27
)
 
46

 
(2
)
Debt funds
1,224

 
(29
)
 
—

 
—

Marketable equity securities
25

 
(13
)
 
—

 
—

Total
$
5,032

 
$
(90
)
 
$
221

 
$
(18
)
 
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:
 
Fiscal Year
 
2014
 
2013
 
2012
(in millions)
Debt (a)
 
Equity (b)
 
Debt (a)
 
Equity (b)
 
Debt (a)
 
Equity (b) (c)
Proceeds from sales
$
7,991

 
$
120

 
$
10,350

 
$
161

 
$
7,675

 
$
113

Gross realized gains
$
15

 
$
69

 
$
59

 
$
94

 
$
52

 
$
93

Gross realized losses
$
(12
)
 
$
—

 
$
(17
)
 
$
—

 
$
(16
)
 
$
—

Impairment losses recognized
$
(1
)
 
$
(9
)
 
$
—

 
$
(21
)
 
$
(2
)
 
$
(10
)
(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 that occurred during fiscal year 2012, the Company recognized a non-cash gain of $38 million on its previously-held minority 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 April 25, 2014, April 26, 2013, and April 27, 2012, the credit loss portion of other-than-temporary impairments on debt securities was $4 million, $9 million, and $20 million, respectively. The total reductions for available-for-sale debt securities sold for the fiscal years ended April 25, 2014 and April 26, 2013 were $5 million and $11 million, respectively. The total other-than-temporary impairment losses on available-for-sale debt securities for the fiscal years ended April 25, 2014 and April 26, 2013 were not significant. The total other-than-temporary impairment losses on available-for-sale debt securities for the fiscal year ended April 27, 2012 was $6 million, of which $4 million was recognized in other comprehensive income and $2 million was recognized in earnings.
The April 25, 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)
April 25, 2014
Due in one year or less
$
1,412

Due after one year through five years
6,368

Due after five years through 10 years
2,859

Due after 10 years
115

Total debt securities
$
10,754


As of April 25, 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 $666 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 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 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 consolidated statements of comprehensive income and unrealized gains and losses on trading securities are recorded in interest expense, net in the consolidated statements of earnings. Gains and losses from the sale of investments are calculated based on the specific identification method.