Fair Value of Financial Assets and Liabilities and Investments in Non-Affiliated Entities

3 Months Ended

Apr. 28, 2024

Fair Value of Financial Assets and Liabilities and Investments in Non-Affiliated Entities

The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis.


	Pricing Category	Fair Value at
		Apr 28, 2024		Jan 28, 2024

		(In millions)
Assets
Cash equivalents and marketable securities:
Money market funds	Level 1	$	5,374	$	3,031
Corporate debt securities	Level 2	$	11,357	$	10,152
Debt securities issued by the U.S. Treasury	Level 2	$	11,252	$	9,524
Debt securities issued by U.S. government agencies	Level 2	$	2,819	$	2,333
Certificates of deposit	Level 2	$	286	$	510
Foreign government bonds	Level 2	$	14	$	174


Other assets (Investments in non-affiliated entities):
Publicly-held equity securities	Level 1	$	287	$	225




Liabilities (1)





0.584% Notes Due 2024	Level 2	$	1,242	$	1,228
3.20% Notes Due 2026	Level 2	$	960	$	970
1.55% Notes Due 2028	Level 2	$	1,096	$	1,115
2.85% Notes Due 2030	Level 2	$	1,331	$	1,367
2.00% Notes Due 2031	Level 2	$	1,026	$	1,057
3.50% Notes Due 2040	Level 2	$	805	$	851
3.50% Notes Due 2050	Level 2	$	1,487	$	1,604
3.70% Notes Due 2060	Level 2	$	368	$	403

(1) These liabilities are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs.

Investments in Non-Affiliated Entities

Our investments in non-affiliated entities include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies.

Our marketable equity securities have readily determinable fair values and are recorded in long-term other assets on our Condensed Consolidated Balance Sheets at fair value with changes in fair value recorded in Other income and expense, net on our Condensed Consolidated Statements of Income. Marketable equity securities totaled $287 million and $225 million as of April 28, 2024 and January 28, 2024, respectively. The net unrealized and realized gains and losses of investments in marketable securities were not significant for the first quarter of fiscal years 2025 and 2024.

Our non-marketable equity securities are recorded in long-term other assets on our Condensed Consolidated Balance Sheets and valued under the measurement alternative. The carrying value of our non-marketable equity securities totaled $1.5 billion and $1.3 billion as of April 28, 2024 and January 28, 2024, respectively. Gains and losses on these investments, realized and unrealized, are recognized in Other income and expense, net on our Condensed Consolidated Statements of Income.

Adjustments to the carrying value of our non-marketable equity securities during the first quarter of fiscal years 2025 and 2024 were as follows:


	Apr 28, 2024		Apr 30, 2023
	(In millions)
Balance at beginning of period	$	1,321	$	288
Adjustments related to non-marketable equity securities:
Net additions	127		221
Unrealized gains	15		—
Impairments and unrealized losses	—		(13)
Balance at end of period	$	1,463	$	496

The following table summarizes the cumulative gross unrealized gains, losses and impairments related to non-marketable equity securities:


	Apr 28, 2024
	(In millions)
Cumulative gross unrealized gains	$	285
Cumulative gross impairments and unrealized losses	(45)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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