Available-for-Sale Debt Investments and Equity Investments (Tables)
|
3 Months Ended |
Oct. 27, 2018 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Summary of Available-for-sale Debt Investments and Equity Investments |
The following table summarizes our available-for-sale debt investments and equity investments (in millions): | | | | | | | | | | October 27, 2018 | | July 28, 2018 | Available-for-sale debt investments | $ | 34,183 |
| | $ | 37,009 |
| Marketable equity securities | — |
| | 605 |
| Total investments | 34,183 |
| | 37,614 |
| Non-marketable equity securities included in other assets | 1,125 |
| | 978 |
| Equity method investments included in other assets | 115 |
| | 118 |
| Total | $ | 35,423 |
| | $ | 38,710 |
|
|
| Summary of Available-for-Sale Investments |
The following tables summarize our available-for-sale debt investments (in millions): | | | | | | | | | | | | | | | | | October 27, 2018 | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | U.S. government securities | $ | 5,783 |
| | $ | — |
| | $ | (29 | ) | | $ | 5,754 |
| U.S. government agency securities | 434 |
| | — |
| | (4 | ) | | 430 |
| Non-U.S. government and agency securities | 153 |
| | — |
| | — |
| | 153 |
| Corporate debt securities | 26,444 |
| | 33 |
| | (446 | ) | | 26,031 |
| U.S. agency mortgage-backed securities | 1,481 |
| | — |
| | (60 | ) | | 1,421 |
| Commercial paper | 309 |
| | — |
| | — |
| | 309 |
| Certificates of deposit | 85 |
| | — |
| | — |
| | 85 |
| Total (1) | $ | 34,689 |
| | $ | 33 |
| | $ | (539 | ) | | $ | 34,183 |
|
| | | | | | | | | | | | | | | | | July 28, 2018 | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | U.S. government securities | $ | 7,318 |
| | $ | — |
| | $ | (43 | ) | | $ | 7,275 |
| U.S. government agency securities | 732 |
| | — |
| | (5 | ) | | 727 |
| Non-U.S. government and agency securities | 209 |
| | — |
| | (1 | ) | | 208 |
| Corporate debt securities | 27,765 |
| | 44 |
| | (445 | ) | | 27,364 |
| U.S. agency mortgage-backed securities | 1,488 |
| | — |
| | (53 | ) | | 1,435 |
| Total (1) | $ | 37,512 |
| | $ | 44 |
| | $ | (547 | ) | | $ | 37,009 |
|
(1) Net unsettled investment purchases were $1 million and net unsettled investment sales were $1.5 billion as of October 27, 2018 and July 28, 2018, respectively and were included in other current assets and other current liabilities. |
| Gross Realized Gains and Gross Realized Losses Related to Available-for-Sale Investment |
The following table presents the gross realized gains and gross realized losses related to available-for-sale debt investments (in millions): | | | | | | | | | | Three Months Ended | | October 27, 2018 | | October 28, 2017 | Gross realized gains | $ | 2 |
| | $ | 8 |
| Gross realized losses | (8 | ) | | (4 | ) | Total | $ | (6 | ) | | $ | 4 |
|
|
| Available-for-Sale Investments with Gross Unrealized Losses |
The following tables present the breakdown of the available-for-sale debt investments with gross unrealized losses and the duration that those losses had been unrealized at October 27, 2018 and July 28, 2018 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | UNREALIZED LOSSES LESS THAN 12 MONTHS | | UNREALIZED LOSSES 12 MONTHS OR GREATER | | TOTAL | October 27, 2018 | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | U.S. government securities | $ | 516 |
| | $ | (3 | ) | | $ | 5,231 |
| | $ | (26 | ) | | $ | 5,747 |
| | $ | (29 | ) | U.S. government agency securities | 4 |
| | — |
| | 427 |
| | (4 | ) | | 431 |
| | (4 | ) | Non-U.S. government and agency securities | — |
| | — |
| | 153 |
| | — |
| | 153 |
| | — |
| Corporate debt securities | 13,483 |
| | (257 | ) | | 6,738 |
| | (189 | ) | | 20,221 |
| | (446 | ) | U.S. agency mortgage-backed securities | 456 |
| | (12 | ) | | 947 |
| | (48 | ) | | 1,403 |
| | (60 | ) | Total | $ | 14,459 |
| | $ | (272 | ) | | $ | 13,496 |
| | $ | (267 | ) | | $ | 27,955 |
| | $ | (539 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | UNREALIZED LOSSES LESS THAN 12 MONTHS | | UNREALIZED LOSSES 12 MONTHS OR GREATER | | TOTAL | July 28, 2018 | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | U.S. government securities | $ | 2,966 |
| | $ | (20 | ) | | $ | 4,303 |
| | $ | (23 | ) | | $ | 7,269 |
| | $ | (43 | ) | U.S. government agency securities | 206 |
| | (2 | ) | | 521 |
| | (3 | ) | | 727 |
| | (5 | ) | Non-U.S. government and agency securities | 105 |
| | (1 | ) | | 103 |
| | — |
| | 208 |
| | (1 | ) | Corporate debt securities | 16,990 |
| | (344 | ) | | 3,511 |
| | (101 | ) | | 20,501 |
| | (445 | ) | U.S. agency mortgage-backed securities | 826 |
| | (24 | ) | | 581 |
| | (29 | ) | | 1,407 |
| | (53 | ) | Total | $ | 21,093 |
| | $ | (391 | ) | | $ | 9,019 |
| | $ | (156 | ) | | $ | 30,112 |
| | $ | (547 | ) |
|
| Maturities of Fixed Income Securities |
The following table summarizes the maturities of our available-for-sale debt investments as of October 27, 2018 (in millions): | | | | | | | | | | Amortized Cost | | Fair Value | Within 1 year | $ | 12,283 |
| | $ | 12,243 |
| After 1 year through 5 years | 19,248 |
| | 18,922 |
| After 5 years through 10 years | 1,662 |
| | 1,581 |
| After 10 years | 15 |
| | 16 |
| Mortgage-backed securities with no single maturity | 1,481 |
| | 1,421 |
| Total | $ | 34,689 |
| | $ | 34,183 |
|
|
| Summary of Adjustments to Carrying Value of Investments |
We recorded adjustments to the carrying value of our non-marketable equity securities measured using the measurement alternative in the first quarter of fiscal 2019 as follows (in millions): | | | | | | Three Months Ended | | October 27, 2018 | Adjustments to non-marketable equity securities measured using the measurement alternative: | | Upward adjustments | $ | 10 |
| Downward adjustments, including impairments | (16 | ) | Net downward adjustments | $ | (6 | ) |
Gains and losses recognized on our marketable and non-marketable equity securities for the first quarter of fiscal 2019 are summarized below (in millions): | | | | | | Three Months Ended | | October 27, 2018 | Net gains and losses recognized during the period on equity investments | $ | 8 |
| Less: Net gains and losses recognized on equity investments sold | (12 | ) | Unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date | $ | (4 | ) |
|