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 31, 2026 and April 24, 2026 (in millions):


	July 31, 2026		April 24, 2026
U.S. Treasury and government debt securities	$	2,103	$	2,112
Money market funds		651		808
Certificates of deposit		137		86
Mutual funds		52		49
Total debt and equity securities	$	2,943	$	3,055

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 31, 2026, 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 (in millions):


	July 31, 2026
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2		Level 3
Cash and cash equivalents:
Cash	$	685		$	685	$	—	$	—
Money market funds		651			651		—		—
Certificates of deposit		137			—		137		—
U.S. Treasury and government debt securities		100			100		—		—
Total cash and cash equivalents		1,573			1,436		137		—
Short-term investments:
U.S. Treasury and government debt securities		2,003			2,003		—		—
Total short-term investments		2,003			2,003		—		—
Total cash, cash equivalents and short-term investments	$	3,576		$	3,439	$	137	$	—
Other items:
Mutual funds (1)	$	10		$	10	$	—	$	—
Mutual funds (2)	$	42		$	42	$	—	$	—
Foreign currency exchange contracts assets (1)	$	14		$	—	$	14	$	—
Contingent consideration liability (3)	$	(106	)	$	—	$	—	$	(106	)


	April 24, 2026
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	578		$	578	$	—
Money market funds		808			808		—
Certificates of deposit		86			—		86
U.S. Treasury and government debt securities		598			598		—
Total cash and cash equivalents		2,070			1,984		86
Short-term investments:
U.S. Treasury and government debt securities		1,514			1,514		—
Total short-term investments		1,514			1,514		—
Total cash, cash equivalents and short-term investments	$	3,584		$	3,498	$	86
Other items:
Mutual funds (1)	$	9		$	9	$	—
Mutual funds (2)	$	40		$	40	$	—
Foreign currency exchange contracts assets (1)	$	10		$	—	$	10
Foreign currency exchange contracts liabilities (3)	$	(1	)	$	—	$	(1	)

(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 contingent consideration liability is related to the acquisition of DataPelago and was valued using a probability-weighted discounted cash flow model. See Note 3 – Business Combination for further details of the acquisition and contingent consideration.

As of July 31, 2026 and April 24, 2026, the fair value of our long-term debt, including the current portion, was $2,443 million and $2,468 million, respectively. These fair values of our long-term debt were based on observable market prices in a less active market.