D. Investments

Investments as of June 30, 2012 and December 31, 2011 consisted of the following (tables in thousands):



	June 30, 2012
	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Fair Value
U.S. Government and agency obligations	$	475,556	$	1,220	$	(73	)	$	476,703
U.S. and foreign corporate debt securities	1,488,144		2,800		(821		)	1,490,123
Foreign governments and multi-national agency obligations	39,138		14		(29		)	39,123
Municipal obligations	1,160,540		2,442		(756		)	1,162,226
Asset-backed securities	36,648		53		(10		)	36,691
Mortgage-backed securities	65,122		129		(148		)	65,103
Total investments	$	3,265,148	$	6,658	$	(1,837	)	$	3,269,969



	December 31, 2011
	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Fair Value
U.S. Government and agency obligations	$	516,795	$	1,842	$	(23	)	$	518,614
U.S. and foreign corporate debt securities	1,134,009		1,404		(2,036		)	1,133,377
Foreign governments and multi-national agency obligations	58,455		30		(87		)	58,398
Municipal obligations	768,282		1,396		(437		)	769,241
Asset-backed securities	27,107		2		(23		)	27,086
Mortgage-backed securities	49,778		128		(172		)	49,734
Total investments	$	2,554,426	$	4,802	$	(2,778	)	$	2,556,450

Both the realized gains and realized losses on investments were not material for the three and six months ended June 30, 2012. During the three months ended June 30, 2011, a realized gain of $56.0 million was recorded in other income (expense), net on the consolidated income statement for the sale of VMware’s investment in Terremark Worldwide, Inc. All other realized gains and losses on investments were not material for the three and six months ended June 30, 2011. In addition, VMware evaluated its investments as of June 30, 2012 and December 31, 2011 and determined that there were no unrealized losses that indicated an other-than-temporary impairment.

As of June 30, 2012 and December 31, 2011, VMware did not have investments in a material continuous unrealized loss position for twelve months or greater. Unrealized losses on investments as of June 30, 2012, and December 31, 2011, which have been in a net loss position for less than twelve months, were classified by investment category as follows (table in thousands):



	June 30, 2012					December 31, 2011
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	214,612	$	(73	)	$	50,604	$	(23	)
U.S. and foreign corporate debt securities	500,126		(819		)	539,228		(2,036		)
Foreign governments and multi-national agency obligations	31,175		(29		)	43,026		(87		)
Municipal obligations	407,195		(756		)	298,187		(406		)
Asset-backed securities	9,399		(10		)	20,025		(23		)
Mortgage-backed securities	38,309		(148		)	32,817		(172		)
Total	$	1,200,816	$	(1,835	)	$	983,887	$	(2,747	)

Contractual Maturities

The contractual maturities of investments held at June 30, 2012 consisted of the following (table in thousands):



	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,275,888	$	1,276,571
Due after 1 year through 5 years	1,929,232		1,933,370
Due after 5 years	60,028		60,028
Total investments	$	3,265,148	$	3,269,969