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Financial Instruments | 6 Months Ended
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Oct. 30, 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 held-to-maturity. Investments classified as available-for-sale are remeasured on a recurring basis. Investments classified as held-to-maturity are measured at amortized cost. The following tables summarize the Company's investments in available-for-sale and held-to-maturity debt securities by significant investment category and the related consolidated balance sheet classification at October 30, 2020 and April 24, 2020:
| October 30, 2020
| Valuation |  | Balance Sheet Classification
(in millions) | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Investments |  | Other Assets
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |
Level 1: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities | $ | 497 |  |  | $ | 39 |  |  | $ | — |  |  | $ | 536 |  |  | $ | 536 |  |  | $ | — |
Level 2: |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | 4,234 |  |  | 124 |  |  | (32) |  |  | 4,326 |  |  | 4,326 |  |  | — |
U.S. government and agency securities | 888 |  |  | 1 |  |  | (1) |  |  | 888 |  |  | 888 |  |  | — |
Mortgage-backed securities | 661 |  |  | 27 |  |  | (19) |  |  | 669 |  |  | 669 |  |  | — |
Non-U.S. government and agency securities | 36 |  |  | 1 |  |  | — |  |  | 37 |  |  | 37 |  |  | — |
Other asset-backed securities | 518 |  |  | 4 |  |  | (7) |  |  | 515 |  |  | 515 |  |  | — |
Total Level 2 | 6,337 |  |  | 157 |  |  | (59) |  |  | 6,435 |  |  | 6,435 |  |  | — |
Level 3: |  |  |  |  |  |  |  |  |  |  |
Auction rate securities | 36 |  |  | — |  |  | — |  |  | 36 |  |  | — |  |  | 36 |
Total available-for-sale debt securities | 6,870 |  |  | 196 |  |  | (59) |  |  | 7,007 |  |  | 6,971 |  |  | 36 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |
Level 2: |  |  |  |  |  |  |  |  |  |  |
Time deposit | 886 |  |  | — |  |  | — |  |  | 886 |  |  | 886 |  |  | — |
Total debt securities | $ | 7,756 |  |  | $ | 196 |  |  | $ | (59) |  |  | $ | 7,893 |  |  | $ | 7,857 |  |  | $ | 36 |
| 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 |
The amortized cost of debt securities excludes accrued interest, which is reported in other current assets in the consolidated balance sheets. 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 October 30, 2020 and April 24, 2020:
| October 30, 2020
| Less than 12 months |  | More than 12 months
(in millions) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities | $ | — |  |  | $ | — |  |  | $ | 196 |  |  | $ | (1) |
Corporate debt securities | 5 |  |  | — |  |  | 858 |  |  | (32) |
Mortgage-backed securities | 25 |  |  | (3) |  |  | 119 |  |  | (16) |
Other asset-backed securities | 8 |  |  | — |  |  | 347 |  |  | (7) |
Total | $ | 38 |  |  | $ | (3) |  |  | $ | 1,520 |  |  | $ | (56) |
| 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) |
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. There were no transfers into or out of Level 3 during the three and six months ended October 30, 2020 and October 25, 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. There were no purchases, sales, settlements, or significant gains or losses recognized in earnings or other comprehensive income for debt securities classified as Level 3 during the three and six months ended October 30, 2020 and October 25, 2019. Activity related to the Company’s available-for-sale debt securities portfolio is as follows:
| Three months ended |  | Six months ended
(in millions) | October 30, 2020 |  | October 25, 2019 |  | October 30, 2020 |  | October 25, 2019
Proceeds from sales | $ | 1,932 |  |  | $ | 1,691 |  |  | $ | 4,335 |  |  | $ | 3,258 |
Gross realized gains | 3 |  |  | 4 |  |  | 8 |  |  | 8 |
Gross realized losses | (1) |  |  | (4) |  |  | (7) |  |  | (12) |
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 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 October 30, 2020 and April 24, 2020, there were no debt securities in a credit loss position. No available-for-sale or held-to-maturity securities were sold for significantly less than carrying value during the three and six months ended October 30, 2020 and October 25, 2019. The October 30, 2020 balance of available-for-sale and held-to-maturity 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.
| October 30, 2020
(in millions) | Available-For-Sale |  | Held-To-Maturity
Due in one year or less | $ | 1,930 |  |  | $ | 886 |
Due after one year through five years | 3,315 |  |  | — |
Due after five years through ten years | 1,695 |  |  | — |
Due after ten years | 67 |  |  | — |
Total | $ | 7,007 |  |  | $ | 886 |
Equity Securities, Equity Method Investments, and Other Investments The Company 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 in 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 October 30, 2020 and April 24, 2020, which are classified as other assets in the consolidated balance sheets:
(in millions) |  | October 30, 2020 |  | April 24, 2020
Investments with readily determinable fair value (marketable equity securities) |  | $ | 25 |  |  | $ | 18 |
Investments without readily determinable fair values |  | 478 |  | 391
Equity method and other investments |  | 74 |  | 71
Total equity and other investments |  | $ | 577 |  |  | $ | 480 |
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.
|  | Three months ended |  | Six months ended
(in millions) |  | October 30, 2020 |  | October 25, 2019 |  | October 30, 2020 |  | October 25, 2019
Proceeds from sales |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 2 |
Gross gains |  | 2 |  |  | 14 |  |  | 14 |  |  | 14 |
Gross losses |  | (2) |  |  | — |  |  | (2) |  |  | — |
Impairment losses recognized |  | — |  |  | (2) |  |  | (2) |  |  | (3) |
The net gains recognized for the three months ended October 30, 2020 were not significant, and the net gains recognized for the six months ended October 30, 2020 were $12 million, comprised of unrealized gains on equity securities and other investments still held at October 30, 2020. The net gains recognized for the three and six months ended October 25, 2019 were $14 million comprised of unrealized gains on equity securities and other investments still held at October 25, 2019. There were no impairment charges incurred on the Company's equity securities, equity method investments, and other investments during the three months ended October 30, 2020. Impairment charges incurred on the Company's equity securities, equity method investments, and other investments during the six months ended October 30, 2020 and the three and six months ended October 25, 2019 were not significant.

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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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