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Financial Instruments and Fair Value Measurements | 9 Months Ended
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Jan. 23, 2015
Investments Debt And Equity Securities [Abstract] |
Financial Instruments and Fair Value Measurements | 7. Financial Instruments and Fair Value Measurements The accounting guidance for fair value measurements provides a framework for measuring fair value on either a recurring or nonrecurring basis, whereby the inputs used in valuation techniques are assigned a hierarchical level. The following are the three levels of inputs to measure fair value: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs that reflect quoted prices for identical assets or liabilities in less active markets; quoted prices for similar assets or liabilities in active markets; benchmark yields, reported trades, broker/dealer quotes, inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Unobservable inputs that reflect our own assumptions incorporated in valuation techniques used to measure fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our own or the counterparty’s non-performance risk is considered in measuring the fair values of liabilities and assets, respectively. Investments The following is a summary of our investments (in millions):
|  | January 23, 2015 |  |  | April 25, 2014 |
|  |  |  |  |  | Gross Unrealized |  |  |  |  |  |  |  |  |  |  | Gross Unrealized |  |  |  |  |
|  | Cost or Amortized Cost |  |  | Gains |  |  | Losses |  |  | Estimated Fair Value |  |  | Cost or Amortized Cost |  |  | Gains |  |  | Losses |  |  | Estimated Fair Value |
Corporate bonds |  | $ | 2,083.9 |  |  | $ | 6.6 |  |  | $ | (0.4 | ) |  |  | 2,090.1 |  |  | $ | 2,142.3 |  |  | $ | 10.5 |  |  | $ | (0.5 | ) |  | $ | 2,152.3 |
U.S. Treasury and government debt securities |  |  | 521.4 |  |  |  | 1.4 |  |  |  | (0.1 | ) |  |  | 522.7 |  |  |  | 263.4 |  |  |  | 0.3 |  |  |  | (0.1 | ) |  |  | 263.6 |
Commercial paper |  |  | 15.0 |  |  |  | — |  |  |  | — |  |  |  | 15.0 |  |  |  | 168.4 |  |  |  | — |  |  |  | — |  |  |  | 168.4 |
Certificates of deposit |  |  | 358.0 |  |  |  | — |  |  |  | — |  |  |  | 358.0 |  |  |  | 245.0 |  |  |  | — |  |  |  | — |  |  |  | 245.0 |
Auction rate securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 36.9 |  |  |  | — |  |  |  | (0.9 | ) |  |  | 36.0 |
Equity funds |  |  | 30.4 |  |  |  | — |  |  |  | — |  |  |  | 30.4 |  |  |  | 32.7 |  |  |  | — |  |  |  | — |  |  |  | 32.7 |
Total debt and equity securities |  | $ | 3,008.7 |  |  | $ | 8.0 |  |  | $ | (0.5 | ) |  | $ | 3,016.2 |  |  | $ | 2,888.7 |  |  | $ | 10.8 |  |  | $ | (1.5 | ) |  | $ | 2,898.0 |
The unrealized losses on our available-for-sale investments were caused by market value declines as a result of the economic environment, as well as fluctuations in market interest rates. Because the declines in market value are attributable to changes in market conditions and not credit quality, and because we have determined that (i) we do not have the intent to sell any of these investments and (ii) it is not more likely than not that we will be required to sell any of these investments before recovery of the entire amortized cost basis, we have concluded that no other-than-temporary impairments were required to be recognized on these investments as of January 23, 2015. The following table presents the contractual maturities of our debt investments as of January 23, 2015 (in millions):
|  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 1,479.8 |  |  | $ | 1,482.0 |
Due in two through five years |  |  | 1,498.5 |  |  |  | 1,503.8 |
|  | $ | 2,978.3 |  |  | $ | 2,985.8 |
Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. Fair Value of Financial Instruments The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions):
|  | January 23, 2015 |
|  |  |  |  |  | Fair Value Measurements at Reporting Date Using |
|  |  |  |  |  | Quoted Prices |  |  | Significant |
|  |  |  |  |  | in Active Markets |  |  | Other |
|  |  |  |  |  | for Identical Assets |  |  | Observable Inputs |
|  | Total |  |  | (Level 1) |  |  | (Level 2) |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 2,090.1 |  |  | $ | — |  |  | $ | 2,090.1 |
U.S. Treasury and government debt securities |  |  | 522.7 |  |  |  | 140.4 |  |  |  | 382.3 |
Commercial paper |  |  | 15.0 |  |  |  | — |  |  |  | 15.0 |
Certificates of deposit |  |  | 358.0 |  |  |  | — |  |  |  | 358.0 |
Equity funds |  |  | 30.4 |  |  |  | 30.4 |  |  |  | — |
Foreign currency contracts |  |  | 21.5 |  |  |  | — |  |  |  | 21.5 |
Total |  | $ | 3,037.7 |  |  | $ | 170.8 |  |  | $ | 2,866.9 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | $ | (6.9 | ) |  | $ | — |  |  | $ | (6.9 | )
The following table summarizes the balance sheet classifications of our financial assets and liabilities measured at fair value on a recurring basis (in millions):
|  | January 23, 2015 |
|  |  |  |  |  | Fair Value Measurements at Reporting Date Using |
|  |  |  |  |  | Quoted Prices |  |  | Significant |
|  |  |  |  |  | in Active Markets |  |  | Other |
|  |  |  |  |  | for Identical Assets |  |  | Observable Inputs |
|  | Total |  |  | (Level 1) |  |  | (Level 2) |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 273.0 |  |  | $ | — |  |  | $ | 273.0 |
Short-term investments |  |  | 2,712.8 |  |  |  | 140.4 |  |  |  | 2,572.4 |
Other current assets |  |  | 24.4 |  |  |  | 2.9 |  |  |  | 21.5 |
Other non-current assets |  |  | 27.5 |  |  |  | 27.5 |  |  |  | — |
Total |  | $ | 3,037.7 |  |  | $ | 170.8 |  |  | $ | 2,866.9 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Other current liabilities |  | $ | (6.9 | ) |  | $ | — |  |  | $ | (6.9 | )
Our Level 2 debt instruments are held by a custodian who prices some of the investments using standard inputs in various asset price models or obtains investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models. We review Level 2 inputs and fair value for reasonableness and the values may be further validated by comparison to multiple independent pricing sources. In addition, we review third-party pricing provider models, key inputs and assumptions and understand the pricing processes at our third-party providers in determining the overall reasonableness of the fair value of our Level 2 financial instruments. As of January 23, 2015, we have not made any adjustments to the prices obtained from our third-party pricing providers. During the three months ended January 23. 2015, we settled our remaining investments in Auction Rate Securities (ARSs), which had been classified as Level 3 financial instruments at their respective par values. The table below provides a reconciliation of the beginning and ending balance of our Level 3 ARSs (in millions).
|  | Three Months Ended |  |  | Nine Months Ended |
|  | January 23, 2015 |  |  | January 24, 2014 |  |  | January 23, 2015 |  |  | January 24, 2014 |
Balance at beginning of period |  | $ | 23.0 |  |  | $ | 39.5 |  |  | $ | 36.0 |  |  | $ | 42.0 |
Total unrealized gains, net included in other comprehensive income (loss) |  |  | 0.3 |  |  |  | 0.9 |  |  |  | 0.9 |  |  |  | 0.7 |
Total realized gains included in earnings |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.7 |
Sales |  |  | — |  |  |  | — |  |  |  | (10.0 | ) |  |  | (3.0 | )
Settlements |  |  | (23.3 | ) |  |  | — |  |  |  | (26.9 | ) |  |  | — |
Balance at end of period |  | $ | — |  |  | $ | 40.4 |  |  | $ | — |  |  | $ | 40.4 |
Fair Value of Debt As of January 23, 2015, the fair value of our long-term debt was approximately $1,521.3 million. The fair value of our debt was based on observable market prices in a less active market and discounted cash flow models that take into consideration variables such as credit-rating and interest rate changes. All of our debt obligations are categorized as Level 2 financial instruments.

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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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