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Financial Instruments | 12 Months Ended
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Apr. 24, 2020
Investments [Abstract] |
Financial Instruments | Financial Instruments Debt Securities The Company holds investments in marketable debt securities that are classified and accounted for as available-for-sale and are remeasured on a recurring basis. The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at April 24, 2020 and April 26, 2019:
| April 24, 2020 |  |  |  |  |  |  |  |  |  |
| Valuation |  |  |  |  |  |  |  | Balance Sheet Classification |  |
(in millions) | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Investments |  | Other Assets
Level 1: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities | $ | 542 |  |  | $ | 47 |  |  | $ | — |  |  | $ | 589 |  |  | $ | 589 |  |  | $ | — |
Level 2: |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | 4,285 |  |  | 66 |  |  | (90) |  |  | 4,261 |  |  | 4,261 |  |  | — |
U.S. government and agency securities | 746 |  |  | 1 |  |  | — |  |  | 747 |  |  | 747 |  |  | — |
Mortgage-backed securities | 705 |  |  | 20 |  |  | (28) |  |  | 697 |  |  | 697 |  |  | — |
Non-U.S. government and agency securities | 34 |  |  | — |  |  | — |  |  | 34 |  |  | 34 |  |  | — |
Other asset-backed securities | 499 |  |  | 1 |  |  | (20) |  |  | 480 |  |  | 480 |  |  | — |
Total Level 2 | 6,269 |  |  | 88 |  |  | (138) |  |  | 6,219 |  |  | 6,219 |  |  | — |
Level 3: |  |  |  |  |  |  |  |  |  |  |
Auction rate securities | 36 |  |  | — |  |  | (3) |  |  | 33 |  |  | — |  |  | 33 |
Total available-for-sale debt securities | $ | 6,847 |  |  | $ | 135 |  |  | $ | (141) |  |  | $ | 6,841 |  |  | $ | 6,808 |  |  | $ | 33 |
| April 26, 2019 |  |  |  |  |  |  |  |  |  |
| Valuation |  |  |  |  |  |  |  | Balance Sheet Classification |  |
(in millions) | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Investments |  | Other Assets
Level 1: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities | $ | 529 |  |  | $ | 1 |  |  | $ | (7) |  |  | $ | 523 |  |  | $ | 523 |  |  | $ | — |
Level 2: |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | 3,500 |  |  | 14 |  |  | (21) |  |  | 3,493 |  |  | 3,493 |  |  | — |
U.S. government and agency securities | 387 |  |  | 1 |  |  | (7) |  |  | 381 |  |  | 381 |  |  | — |
Mortgage-backed securities | 537 |  |  | 3 |  |  | (20) |  |  | 520 |  |  | 520 |  |  | — |
Non-U.S. government and agency securities | 11 |  |  | — |  |  | — |  |  | 11 |  |  | 11 |  |  | — |
Other asset-backed securities | 529 |  |  | 1 |  |  | (3) |  |  | 527 |  |  | 527 |  |  | — |
Total Level 2 | 4,964 |  |  | 19 |  |  | (51) |  |  | 4,932 |  |  | 4,932 |  |  | — |
Level 3: |  |  |  |  |  |  |  |  |  |  |
Auction rate securities | 47 |  |  | — |  |  | (3) |  |  | 44 |  |  | — |  |  | 44 |
Total available-for-sale debt securities | $ | 5,540 |  |  | $ | 20 |  |  | $ | (61) |  |  | $ | 5,499 |  |  | $ | 5,455 |  |  | $ | 44 |
The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category, at April 24, 2020 and April 26, 2019:
| April 24, 2020 |  |  |  |  |  |
| Less than 12 months |  |  |  | More than 12 months |  |
(in millions) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Corporate debt securities | $ | 1,368 |  |  | $ | (2) |  |  | $ | 2,893 |  |  | $ | (88) |
Mortgage-backed securities | 35 |  |  | (1) |  |  | 663 |  |  | (27) |
Other asset-backed securities | 17 |  |  | — |  |  | 463 |  |  | (20) |
Auction rate securities | 33 |  |  | (3) |  |  | — |  |  | — |
Total | $ | 1,453 |  |  | $ | (6) |  |  | $ | 4,019 |  |  | $ | (135) |
| April 26, 2019 |  |  |  |  |  |
| Less than 12 months |  |  |  | More than 12 months |  |
(in millions) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities | $ | 130 |  |  | $ | (1) |  |  | $ | 649 |  |  | $ | (13) |
Corporate debt securities | 582 |  |  | (5) |  |  | 1,153 |  |  | (16) |
Mortgage-backed securities | 73 |  |  | (1) |  |  | 250 |  |  | (19) |
Other asset-backed securities | 290 |  |  | (2) |  |  | 85 |  |  | (1) |
Auction rate securities | — |  |  | — |  |  | 44 |  |  | (3) |
Total | $ | 1,075 |  |  | $ | (9) |  |  | $ | 2,181 |  |  | $ | (52) |
The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during fiscal years 2020 or 2019. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Activity related to the Company’s debt securities portfolio is as follows:
(in millions) | April 24, 2020 |  | April 26, 2019 |  | April 27, 2018
Proceeds from sales | $ | 9,559 |  |  | $ | 3,718 |  |  | $ | 3,309 |
Gross realized gains | 25 |  |  | 18 |  |  | 27 |
Gross realized losses | (22) |  |  | (62) |  |  | (21) |
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 the Company is invested, the Company believes it has recognized 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. At April 24, 2020 and April 26, 2019, the credit loss portion of other-than temporary impairments on debt securities was not significant. No available-for-sale securities were sold for significantly less than carrying value during the fiscal years 2020 or 2019. The April 24, 2020 balance of available-for-sale debt securities 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 24, 2020
Due in one year or less | $ | 2,190 |
Due after one year through five years | 2,854 |
Due after five years through ten years | 1,733 |
Due after ten years | 64 |
Total debt securities | $ | 6,841 |
Equity Securities, Equity Method Investments, and Other Investments The Company commonly holds investments in equity securities with readily determinable fair values, equity investments without readily determinable fair values, investments accounted for under the equity method, and other investments. Equity securities with readily determinable fair values are included within Level 1 of the fair value hierarchy, as they are measured using quoted market prices. Equity method investments and investments without readily determinable fair values are included within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. To determine the fair value of these investments, the Company uses all pertinent financial information available related to the investees, including financial statements, market participant valuations from recent and proposed equity offerings, and other third-party data. The following table summarizes the Company's equity and other investments at April 24, 2020 and April 26, 2019, which are classified as other assets in the consolidated balance sheets:
(in millions) |  | April 24, 2020 |  | April 26, 2019
Investments with readily determinable fair values (marketable equity securities) |  | $ | 18 |  |  | $ | — |
Investments without readily determinable fair values |  | 391 |  |  | 308 |
Equity method and other investments |  | 71 |  |  | 64 |
Total equity and other investments |  | $ | 480 |  |  | $ | 372 |
The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating income, net in the consolidated statements of income.
(in millions) |  | April 24, 2020 |  | April 26, 2019 |  | April 27, 2018
Proceeds from sales |  | $ | 15 |  |  | $ | 964 |  |  | $ | 918 |
Gross gains |  | 17 |  |  | 134 |  |  | 18 |
Gross losses |  | (30) |  |  | (30) |  |  | (4) |
Recognized impairment losses |  | (4) |  |  | (45) |  |  | (231) |
Net losses recognized during fiscal year 2020 were $13 million, comprised of $15 million unrealized gains and losses on equity securities and other investments still held at April 24, 2020, and $2 million realized gains recognized on equity securities and other investments sold during the fiscal year. Net gains recognized during fiscal year 2019 were $104 million, comprised of $94 million net realized gains on equity and other investments sold during the period and $10 million of unrealized gains on equity and other investments still held at April 26, 2019. Gross gains and losses for fiscal year 2018 represent gains and losses on instruments sold during the period. Impairment charges incurred on the Company's equity securities, equity method investments, and other investments during fiscal years 2020 and 2019 were not significant. During fiscal year 2018, the Company received bids from potential buyers and investors for some or all of its ownership in a portfolio of selected investments, which indicated that the fair values of certain of the underlying cost and equity method investments in the portfolio may be below the respective carrying values. The Company determined that the decline in the fair values was other-than-temporary given the uncertainty regarding the Company’s intent to hold the investments for a period of time that would be sufficient to recover the carrying values. As a result, the Company recognized impairment charges of $227 million during fiscal year 2018, which were recognized in other non-operating income, net in the consolidated statements of income. The fair values of the investments were determined based on Level 3 inputs. The carrying values of the investments prior to recognizing the impairment charges was $317 million. There were no other significant impairment charges recognized during fiscal year 2018.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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- References No definition available. + Details
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