
8.	Investments


(a)	Summary of Available-for-Sale Investments

The following tables summarize the Company’s available-for-sale investments (in millions):



January 26, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	25,147	$	31	$	(1	)	$	25,177
U.S. government agency securities	3,776		14		—			3,790
Non-U.S. government and agency securities	1,329		7		—			1,336
Corporate debt securities	7,021		99		(2		)	7,118
Total fixed income securities	37,273		151		(3		)	37,421
Publicly traded equity securities	1,484		628		(4		)	2,108
Total	$	38,757	$	779	$	(7	)	$	39,529



July 28, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	24,201	$	41	$	(1	)	$	24,241
U.S. government agency securities	5,367		21		—			5,388
Non-U.S. government and agency securities	1,629		9		—			1,638
Corporate debt securities	5,959		74		(3		)	6,030
Total fixed income securities	37,156		145		(4		)	37,297
Publicly traded equity securities	1,107		524		(11		)	1,620
Total	$	38,263	$	669	$	(15	)	$	38,917

U.S. government agency securities include corporate debt securities that are guaranteed by the Federal Deposit Insurance Corporation, while non-U.S. government and agency securities include agency and corporate debt securities that are guaranteed by non-U.S. governments.


(b)	Gains and Losses on Available-for-Sale Investments

The following table presents the gross realized gains and gross realized losses related to the Company’s available-for-sale investments (in millions):



	Three Months Ended						Six Months Ended
	January 26, 2013			January 28, 2012			January 26, 2013			January 28, 2012
Gross realized gains	$	191		$	188		$	263		$	424
Gross realized losses	(178		)	(151		)	(223		)	(378		)
Total	$	13		$	37		$	40		$	46

The following table presents the realized net gains (losses) related to the Company's available-for-sale investments by security type (in millions):



	Three Months Ended				Six Months Ended
	January 26, 2013		January 28, 2012		January 26, 2013		January 28, 2012
Net gains (losses) on investments in publicly traded equity securities	$	4	$	31	$	14	$	15
Net gains on investments in fixed income securities	9		6		26		31
Total	$	13	$	37	$	40	$	46

There were no impairment charges on available-for-sale investments for the periods presented.

The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at January 26, 2013 and July 28, 2012 (in millions):



	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER				TOTAL
January 26, 2013	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government securities	$	2,617	$	(1	)	$	—	$	—	$	2,617	$	(1	)
Corporate debt securities	1,014		(2		)	—		—		1,014		(2		)
Total fixed income securities	3,631		(3		)	—		—		3,631		(3		)
Publicly traded equity securities	36		(4		)	—		—		36		(4		)
Total	$	3,667	$	(7	)	$	—	$	—	$	3,667	$	(7	)



	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER					TOTAL
July 28, 2012	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government securities	$	5,357	$	(1	)	$	—	$	—		$	5,357	$	(1	)
Corporate debt securities	603		(3		)	14		—			617		(3		)
Total fixed income securities	5,960		(4		)	14		—			5,974		(4		)
Publicly traded equity securities	167		(8		)	20		(3		)	187		(11		)
Total	$	6,127	$	(12	)	$	34	$	(3	)	$	6,161	$	(15	)

As of January 26, 2013, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of January 26, 2013, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three and six months ended January 26, 2013.

The Company has evaluated its publicly traded equity securities as of January 26, 2013 and has determined that there was no indication of other-than-temporary impairments in the respective categories of unrealized losses. This determination was based on several factors, which include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and the Company's intent and ability to hold the publicly traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value.


(c)	Maturities of Fixed Income Securities

The following table summarizes the maturities of the Company’s fixed income securities at January 26, 2013 (in millions):



	Amortized Cost		Fair Value
Less than 1 year	$	16,215	$	16,234
Due in 1 to 2 years	10,710		10,752
Due in 2 to 5 years	10,230		10,310
Due after 5 years	118		125
Total	$	37,273	$	37,421

Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.


(d)	Securities Lending

The Company periodically engages in securities lending activities with certain of its available-for-sale investments. These transactions are accounted for as a secured lending of the securities, and the securities are typically loaned only on an overnight basis. The average daily balance of securities lending for the six months ended January 26, 2013 and January 28, 2012 was $0.8 billion and $0.4 billion, respectively. The Company requires collateral equal to at least 102% of the fair market value of the loaned security in the form of cash or in the form of liquid, high-quality assets. The Company engages in these secured lending transactions only with highly creditworthy counterparties, and the associated portfolio custodian has agreed to indemnify the Company against collateral losses. The Company did not experience any losses in connection with the secured lending of securities during the periods presented. As of January 26, 2013 and July 28, 2012, the Company had no outstanding securities lending transactions.