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Interest and Other Income, Net
Interest Income (Expense), Net The following table summarizes interest income and interest expense (in millions):
Years Ended July 27, 2013 July 28, 2012
Variance
in Dollars July 28, 2012 July 30, 2011
Variance
in Dollars
Interest income ............................. $ 654 $ 650 $ 4 $ 650 $ 641 $ 9
Interest expense ............................ (583) (596) 13 (596) (628) 32
Interest income (expense), net ............. $71 $ 54 $17 $ 54 $ 13 $41
Interest income increased slightly in both fiscal 2013 and fiscal 2012 as compared with the respective prior fiscal years. The
slight increases were primarily due to increased interest income earned on financing receivables, partially offset by lower
interest income from our portfolio of cash, cash equivalents, and fixed income investments as a result of lower average interest
rates. The decrease in interest expense in fiscal 2013 as compared with fiscal 2012 was attributable to the favorable impact of
interest rate swaps and lower expense on our floating-rate notes as the benchmark London InterBank Offered Rate (LIBOR)
decreased. The decrease in interest expense in fiscal 2012 compared with fiscal 2011 was attributable to the effect of lower
average interest rates on our debt.
Other Income (Loss), Net The components of other income, net, are summarized as follows (in millions):
Years Ended July 27, 2013 July 28, 2012
Variance
in Dollars July 28, 2012 July 30, 2011
Variance
in Dollars
Gains (losses) on investments, net:
Publicly traded equity securities ........... $17 $ 43 $(26) $ 43 $ 88 $ (45)
Fixed income securities .................. 31 58 (27) 58 91 (33)
Total available-for-sale investments ........ 48 101 (53) 101 179 (78)
Privately held companies ................. (57) (70) 13 (70) 34 (104)
Net gains (losses) on investments ...... (9) 31 (40) 31 213 (182)
Other gains (losses), net ...................... (31) 9 (40) 9 (75) 84
Other income (loss), net .......... $(40) $ 40 $(80) $ 40 $138 $ (98)
Fiscal 2013 Compared with Fiscal 2012
The decrease in net gains on available-for-sale investments in fiscal 2013 compared with fiscal 2012 was attributable to lower
gains on fixed income and publicly traded equity securities in fiscal 2013 as a result of market conditions and the timing of
sales of these securities. See Note 8 to the Consolidated Financial Statements for the unrealized gains and losses on
investments. For fiscal 2013 as compared with fiscal 2012, the change in net losses on investments in privately held companies
was primarily due to higher realized gains from various private investments, partially offset by an increase of $23 million in
our proportional share of losses from our VCE joint venture. The change in other gains (losses), net for fiscal 2013 as
compared with fiscal 2012, was primarily due to an increase in donations and less favorable foreign exchange impacts in fiscal
2013.
Fiscal 2012 Compared with Fiscal 2011
The decrease in total net gains on available-for-sale investments in fiscal 2012 compared with fiscal 2011 was attributable to
lower gains on fixed income and publicly traded equity securities in fiscal 2012 as a result of market conditions and the timing
of sales of these securities. For fiscal 2012 as compared with fiscal 2011, the change in net (losses) gains on investments in
privately held companies was primarily due to equity method losses related to our proportional share of losses from our VCE
joint venture increasing by $84 million for fiscal 2012. The change in other gains (losses), net for fiscal 2012 as compared
with fiscal 2011, was primarily due to more favorable foreign exchange impacts in fiscal 2012.
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