Investments


(a)	Summary of Available-for-Sale Investments

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



October 27, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	26,401	$	22	$	(9	)	$	26,414
U.S. government agency securities	4,441		14		—			4,455
Non-U.S. government and agency securities	1,388		8		—			1,396
Corporate debt securities	6,105		96		(2		)	6,199
Total fixed income securities	38,335		140		(11		)	38,464
Publicly traded equity securities	1,263		512		(12		)	1,763
Total	$	39,598	$	652	$	(23	)	$	40,227



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 ("FDIC"), 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	October 27, 2012			October 29, 2011
Gross realized gains	$	72		$	236
Gross realized losses	(45		)	(227		)
Total	$	27		$	9

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	October 27, 2012		October 29, 2011
Net gains (losses) on investments in publicly traded equity securities	$	10	$	(16	)
Net gains on investments in fixed income securities	17		25
Total	$	27	$	9

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 October 27, 2012 and July 28, 2012 (in millions):



	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER				TOTAL
October 27, 2012	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government agency securities	$	12,477	$	(9	)	$	—	$	—	$	12,477	$	(9	)
Corporate debt securities	469		(2		)	—		—		469		(2		)
Total fixed income securities	12,946		(11		)	—		—		12,946		(11		)
Publicly traded equity securities	270		(12		)	—		—		270		(12		)
Total	$	13,216	$	(23	)	$	—	$	—	$	13,216	$	(23	)



	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 agency 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 October 27, 2012, 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 October 27, 2012, 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 months ended October 27, 2012.

The Company has evaluated its publicly traded equity securities as of October 27, 2012 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 October 27, 2012 (in millions):



	Amortized Cost		Fair Value
Less than 1 year	$	17,224	$	17,238
Due in 1 to 2 years	10,763		10,798
Due in 2 to 5 years	10,265		10,339
Due after 5 years	83		89
Total	$	38,335	$	38,464

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 three months ended October 27, 2012 and October 29, 2011 was $0.8 billion and $0.6 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 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 October 27, 2012 and July 28, 2012, the Company had no outstanding securities lending transactions.