Cash, Cash Equivalents and Investments

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Cash, cash equivalents and investments

Cash, Cash Equivalents and Investments

Cash, cash equivalents and investments as of June 30, 2015 and December 31, 2014 consisted of the following (tables in millions):

	June 30, 2015
	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Fair Value
Cash	$	787	$	—	$	—		$	787
Cash equivalents:
Money-market funds	$	990	$	—	$	—		$	990
U.S. and foreign corporate debt securities	7		—		—			7
Municipal obligations	7		—		—			7
Total cash equivalents	$	1,004	$	—	$	—		$	1,004
Short-term investments:
U.S. Government and agency obligations	$	654	$	1	$	—		$	655
U.S. and foreign corporate debt securities	3,293		4		(5		)	3,292
Foreign governments and multi-national agency obligations	27		—		—			27
Municipal obligations	887		1		—			888
Asset-backed securities	36		—		—			36
Mortgage-backed securities	308		—		(1		)	307
Total short-term investments	$	5,205	$	6	$	(6	)	$	5,205
Other assets:
Marketable available-for-sale equity securities	$	15	$	—	$	—		$	15

	December 31, 2014
	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Fair Value
Cash	$	885	$	—	$	—		$	885
Cash equivalents:
Money-market funds	$	1,130	$	—	$	—		$	1,130
U.S. and foreign corporate debt securities	54		—		—			54
Foreign governments and multi-national agency obligations	2		—		—			2
Total cash equivalents	$	1,186	$	—	$	—		$	1,186
Short-term investments:
U.S. Government and agency obligations	$	542	$	—	$	—		$	542
U.S. and foreign corporate debt securities	3,236		3		(5		)	3,234
Foreign governments and multi-national agency obligations	23		—		—			23
Municipal obligations	930		2		—			932
Asset-backed securities	53		—		—			53
Mortgage-backed securities	221		—		(1		)	220
Total short-term investments	$	5,005	$	5	$	(6	)	$	5,004

Refer to Note F for further information regarding the fair value of VMware’s cash equivalents and investments.

The realized gains and losses on investments during the three and six months endedJune 30, 2015 and 2014 were not material.

Unrealized losses on cash equivalents and investments as of June 30, 2015 and December 31, 2014, which have been in a net loss position for less than twelve months, were classified by investment category as follows (table in millions):

	June 30, 2015					December 31, 2014
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. and foreign corporate debt securities	$	1,718	$	(5	)	$	1,964	$	(5	)
Mortgage-backed securities	169		(1		)	107		(1		)
Total	$	1,887	$	(6	)	$	2,071	$	(6	)

Unrealized losses on cash equivalents and available-for-sale investments, which have been in a net loss position for twelve months or greater, were not material as of June 30, 2015 and December 31, 2014.

Contractual Maturities

The contractual maturities of short-term investments held at June 30, 2015 consisted of the following (table in millions):

	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,363	$	1,363
Due after 1 year through 5 years	3,511		3,512
Due after 5 years through 10 years	107		107
Due after 10 years	224		223
Total short-term investments	$	5,205	$	5,205