Cash and Cash Equivalents, Investments and Funds Held for Customers

The following table summarizes our cash and cash equivalents, investments and funds held for customers by balance sheet classification at the dates indicated.



	July 31, 2013				July 31, 2012
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Classification on balance sheets:
Cash and cash equivalents	$	1,009	$	1,009	$	393	$	393
Investments	653		652		350		351
Funds held for customers	235		235		289		290
Long-term investments	54		83		47		75
Total cash and cash equivalents, investments and funds held for customers	$	1,951	$	1,979	$	1,079	$	1,109

The following table summarizes our cash and cash equivalents, investments and funds held for customers by investment category at the dates indicated. See Note 2 for more information on our municipal auction rate securities.



	July 31, 2013				July 31, 2012
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Type of issue:
Total cash and cash equivalents	$	1,069	$	1,069	$	508	$	508
Available-for-sale debt securities:
Municipal bonds	489		489		259		260
Municipal auction rate securities	33		33		41		41
Corporate notes	269		269		141		142
U.S. agency securities	69		69		124		124
Total available-for-sale debt securities	860		860		565		567
Available-for-sale corporate equity securities	5		33		5		33
Other long-term investments	17		17		1		1
Total cash and cash equivalents, investments and funds held for customers	$	1,951	$	1,979	$	1,079	$	1,109

We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the twelve months ended July 31, 2013, 2012 and 2011 were not significant.

We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income in the stockholders’ equity section of our balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at July 31, 2013 and July 31, 2012 were not significant. The gross unrealized gain on our available-for-sale equity security, which we classify as a long-term investment based on our intention to hold it for more than twelve months, was approximately $28 million at July 31, 2013. See Note 6, “Accumulated Other Comprehensive Income,” for more information.

We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments that we held at July 31, 2013 were not other-than-temporarily impaired. Unrealized losses at July 31, 2013 were not significant and are due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. We do not intend to sell these investments and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity.

The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.



	July 31, 2013				July 31, 2012
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	234	$	235	$	218	$	218
Due within two years	245		245		134		135
Due within three years	211		210		131		132
Due after three years	170		170		82		82
Total available-for-sale debt securities	$	860	$	860	$	565	$	567

Available-for-sale debt securities due after three years in the table above include our municipal auction rate securities. See Note 2, “Fair Value Measurements,” for more information. All of the remaining securities in that category had effective maturities of three years or less due to interest reset dates or mandatory call dates.