Cisco 2014 Annual Report Download - page 104

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(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 26, 2014 July 27, 2013 July 28, 2012
Gross realized gains .................................. $341 $ 264 $ 561
Gross realized losses ................................. (41) (216) (460)
Total .......................................... $300 $ 48 $ 101
The following table presents the realized net gains related to the Company’s available-for-sale investments by security type (in
millions):
Years Ended July 26, 2014 July 27, 2013 July 28, 2012
Net gains on investments in publicly traded equity
securities ......................................... $253 $17 $ 43
Net gains on investments in fixed income securities ......... 47 31 58
Total .......................................... $300 $48 $101
For fiscal 2014, the realized net gains related to the Company’s available-for-sale investments included impairment charges of
$11 million. These impairment charges related to publicly traded equity securities and were due to a decline in the fair value of
those securities below their cost basis that were determined to be other than temporary. There were no impairment charges on
available-for-sale investments for fiscal 2013 and 2012.
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 26, 2014 and July 27, 2013 (in millions):
UNREALIZED LOSSES
LESS THAN 12 MONTHS
UNREALIZED LOSSES
12 MONTHS OR GREATER TOTAL
July 26, 2014 Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fixed income securities:
U.S. government securities ................... $ 7,676 $(12) $ 45 $ — $ 7,721 $(12)
Non-U.S. government and agency securities ..... 361 (1) 22 — 383 (1)
Corporate debt securities ..................... 1,875 (3) 491 (4) 2,366 (7)
Total fixed income securities .............. 9,912 (16) 558 (4) 10,470 (20)
Publicly traded equity securities ................... 132 (10) — — 132 (10)
Total .............................. $10,044 $(26) $558 $ (4) $10,602 $(30)
UNREALIZED LOSSES
LESS THAN 12 MONTHS
UNREALIZED LOSSES
12 MONTHS OR GREATER TOTAL
July 27, 2013 Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
Fixed income securities:
U.S. government securities .................... $ 7,865 $(13) $ — $ — $ 7,865 $(13)
U.S. government agency securities .............. 294 (1) — — 294 (1)
Non-U.S. government and agency securities ....... 432 (2) — — 432 (2)
Corporate debt securities ...................... 3,704 (50) 4 — 3,708 (50)
Total fixed income securities ............... 12,295 (66) 4 — 12,299 (66)
Publicly traded equity securities .................... 278 (4) — — 278 (4)
Total .............................. $12,573 $(70) $ 4 $ — $12,577 $(70)
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