8. Investments

(a) Summary of Available-for-Sale Investments

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


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


July 30, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	19,087	$	52	$	—		$	19,139
U.S. government agency securities		8,742		35		(1	)		8,776
Non-U.S. government and agency securities		3,119		14		(1	)		3,132
Corporate debt securities		4,333		65		(4	)		4,394
Asset-backed securities		120		5		(4	)		121

Total fixed income securities		35,401		171		(10	)		35,562
Publicly traded equity securities		734		639		(12	)		1,361

Total	$	36,135	$	810	$	(22	)	$	36,923

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):


Years Ended	July 28, 2012			July 30, 2011			July 31, 2010
Gross realized gains	$	641		$	348		$	279
Gross realized losses		(540	)		(169	)		(110	)

Total	$	101		$	179		$	169

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


Years Ended	July 28, 2012		July 30, 2011		July 31, 2010
Net gains on investments in publicly traded equity securities	$	43	$	88	$	66
Net gains on investments in fixed income securities		58		91		103

Total	$	101	$	179	$	169

Impairment charges on available-for-sale investments were not material for the periods presented.

The following table summarizes the activity related to credit losses for fixed income securities (in millions):


	July 28, 2012			July 30, 2011
Balance at beginning of fiscal year	$	(23	)	$	(95	)
Sales of other-than-temporarily impaired fixed income securities		23			72

Balance at end of fiscal year	$	—		$	(23	)

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 July 28, 2012 and July 30, 2011 (in millions):


	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	)


	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER					TOTAL
July 30, 2011	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government agency securities	$	2,310	$	(1	)	$	—	$	—		$	2,310	$	(1	)
Non-U.S. government and agency securities		875		(1	)		—		—			875		(1	)
Corporate debt securities		548		(2	)		56		(2	)		604		(4	)
Asset-backed securities		—		—			105		(4	)		105		(4	)

Total fixed income securities		3,733		(4	)		161		(6	)		3,894		(10	)
Publicly traded equity securities		112		(12	)		—		—			112		(12	)

Total	$	3,845	$	(16	)	$	161	$	(6	)	$	4,006	$	(22	)

As of July 28, 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 July 28, 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 year ended July 28, 2012.

The Company has evaluated its publicly traded equity securities as of July 28, 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 July 28, 2012 (in millions):


	Amortized Cost		Fair Value
Less than 1 year	$	16,257	$	16,274
Due in 1 to 2 years		12,277		12,323
Due in 2 to 5 years		8,549		8,623
Due after 5 years		73		77

Total	$	37,156	$	37,297

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 fiscal 2012 and 2011 was $0.5 billion and $1.6 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 July 28, 2012 and July 30, 2011, the Company had no outstanding securities lending transactions.