Fair Value Measurements (Tables)

9 Months Ended

Jan. 23, 2015

Information by Level for Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis:



	Fair Value as of January 23, 2015		Fair Value Measurements Using Inputs Considered as
(in millions)	Fair Value as of January 23, 2015		Level 1		Level 2		Level 3
Assets:
Corporate debt securities	$	5,948	$	—	$	5,939	$	9
Auction rate securities	99		—		—		99
Mortgage-backed securities	1,375		—		1,375		—
U.S. government and agency securities	3,092		1,419		1,673		—
Foreign government and agency securities	79		—		79		—
Certificates of deposit	42		—		42		—
Other asset-backed securities	499		—		499		—
Debt funds	2,816		—		2,816		—
Marketable equity securities	50		50		—		—
Exchange-traded funds	74		74		—		—
Derivative assets	578		482		96		—
Total assets	$	14,652	$	2,025	$	12,519	$	108

Liabilities:
Derivative liabilities	$	105	$	32	$	73	$	—
Contingent consideration associated with acquisitions subsequent to April 24, 2009	93		—		—		93
Total liabilities	$	198	$	32	$	73	$	93



	Fair Value as of April 25, 2014		Fair Value Measurements Using Inputs Considered as
(in millions)	Fair Value as of April 25, 2014		Level 1		Level 2		Level 3
Assets:
Corporate debt securities	$	5,542	$	—	$	5,533	$	9
Auction rate securities	97		—		—		97
Mortgage-backed securities	1,336		—		1,336		—
U.S. government and agency securities	3,116		1,251		1,865		—
Foreign government and agency securities	67		—		67		—
Certificates of deposit	54		—		54		—
Other asset-backed securities	542		—		542		—
Debt funds	2,123		—		2,123		—
Marketable equity securities	49		49		—		—
Exchange-traded funds	67		67		—		—
Derivative assets	175		89		86		—
Total assets	$	13,168	$	1,456	$	11,606	$	106

Liabilities:
Derivative liabilities	$	127	$	116	$	11	$	—
Contingent consideration associated with acquisitions subsequent to April 24, 2009	68		—		—		68
Total liabilities	$	195	$	116	$	11	$	68

Fair Value Inputs, Assets, Quantitative Information

The following table represents the range of the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 as of January 23, 2015:



	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Years to principal recovery	2 yrs. - 12 yrs. (3 yrs.)
Auction rate securities	Discounted cash flow	Illiquidity premium	6%

Reconciliation of Beginning and Ending Balances of Items Measured at Fair Value on a Recurring Basis that Used Significant Unobservable Inputs (Level 3)

The following tables provide a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) for the three and nine months ended January 23, 2015 and January 24, 2014:



Three months ended January 23, 2015
(in millions)	Total Level 3 Investments			Corporate debt securities			Auction rate securities			Mortgage- backed securities
Balance as of October 24, 2014	$	108		$	9		$	99		$	—
Total unrealized gains included in other comprehensive income	—			—			—			—
Balance as of January 23, 2015	$	108		$	9		$	99		$	—

Three months ended January 24, 2014
(in millions)	Total Level 3 Investments			Corporate debt securities			Auction rate securities			Mortgage- backed securities
Balance as of October 25, 2013	$	118		$	9		$	105		$	4
Total realized losses and other-than-temporary impairment losses included in earnings	(3		)	—			(3		)	—
Total unrealized gains included in other comprehensive income	(3		)	—			(3		)	—
Settlements	(7		)	—			(3		)	(4		)
Balance as of January 24, 2014	$	105		$	9		$	96		$	—

Nine months ended January 23, 2015
(in millions)	Total Level 3 Investments			Corporate debt securities			Auction rate securities			Mortgage- backed securities
Balance as of April 25, 2014	$	106		$	9		$	97		$	—
Total unrealized gains included in other comprehensive income	2			—			2			—
Balance as of January 23, 2015	$	108		$	9		$	99		$	—

Nine months ended January 24, 2014
(in millions)	Total Level 3 Investments			Corporate debt securities			Auction rate securities			Mortgage- backed securities
Balance as of April 26, 2013	$	127		$	10		$	103		$	14
Total realized losses and other-than-temporary impairment losses included in earnings	(5		)	—			(5		)	—
Total unrealized gains included in other comprehensive income	3			—			2			1
Settlements	(20		)	(1		)	(4		)	(15		)
Balance as of January 24, 2014	$	105		$	9		$	96		$	—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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