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.

The following is a summary of our investments at their cost or amortized cost as of July 25, 2025 and April 25, 2025 (in millions):


	July 25, 2025		April 25, 2025
U.S. Treasury and government debt securities	$	1,239	$	2,025
Money market funds		1,419		1,126
Certificates of deposit		33		24
Mutual funds		48		41
Total debt and equity securities	$	2,739	$	3,216

The fair value of our investments approximates their cost or amortized cost for both periods presented. Investments in mutual funds relate to the non-qualified deferred compensation plan offered to certain employees.

As of July 25, 2025, all our debt investments are due to mature in one year or less.

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions):


	July 25, 2025
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	633		$	633	$	—
Money market funds		1,419			1,419		—
Certificates of deposit		33			—		33
Total cash and cash equivalents		2,085			2,052		33
Short-term investments:
U.S. Treasury and government debt securities		1,239			1,239		—
Total short-term investments		1,239			1,239		—
Total cash, cash equivalents and short-term investments	$	3,324		$	3,291	$	33
Other items:
Mutual funds (1)	$	6		$	6	$	—
Mutual funds (2)	$	42		$	42	$	—
Foreign currency exchange contracts assets (1)	$	16		$	—	$	16
Foreign currency exchange contracts liabilities (3)	$	(4	)	$	—	$	(4	)


	April 25, 2025
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	671		$	671	$	—
Money market funds		1,126			1,126		—
Certificates of deposit		24			—		24
U.S. Treasury and government debt securities		921			921		—
Total cash and cash equivalents		2,742			2,718		24
Short-term investments:
U.S. Treasury and government debt securities		1,104			1,104		—
Total short-term investments		1,104			1,104		—
Total cash, cash equivalents and short-term investments	$	3,846		$	3,822	$	24
Other items:
Mutual funds (1)	$	7		$	7	$	—
Mutual funds (2)	$	34		$	34	$	—
Foreign currency exchange contracts assets (1)	$	29		$	—	$	29
Foreign currency exchange contracts liabilities (3)	$	(2	)	$	—	$	(2	)

(1)

Reported as other current assets in the condensed consolidated balance sheets

(2)

Reported as other non-current assets in the condensed consolidated balance sheets

(3)

Reported as accrued expenses in the condensed consolidated balance sheets

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 third-party pricing providers that incorporate standard inputs in various asset price models. These pricing providers utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. 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 debt instruments. As of July 25, 2025 and April 25, 2025, we have not made any adjustments to the prices obtained from our third-party pricing providers.

As of July 25, 2025 and April 25, 2025, the fair value of our long-term debt, which includes the current portion of long-term debt, was $2,443 million and $3,143 million, respectively. The fair value of our long-term debt was based on observable market prices in a less active market.