Cisco 2015 Annual Report Download - page 104

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 25, 2015 and July 26, 2014 (in millions):
UNREALIZED LOSSES
LESS THAN 12 MONTHS
UNREALIZED LOSSES
12 MONTHS OR GREATER TOTAL
July 25, 2015 Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
Fixed income securities:
U.S. government securities .. $ 6,412 $ (6) $ — $ — $ 6,412 $ (6)
U.S. government agency
securities .................... 1,433 (1) — — 1,433 (1)
Non-U.S. government and
agency securities ............ 515 (1) 4 — 519 (1)
Corporate debt securities ... 9,552 (49) 312 (4) 9,864 (53)
U.S. agency mortgage-
backed securities ............ 579 (3) — — 579 (3)
Total fixed income
securities ............... 18,491 (60) 316 (4) 18,807 (64)
Publicly traded equity
securities ......................... 108 (7) 2 — 110 (7)
Total .............. $ 18,599 $ (67) $ 318 $ (4) $ 18,917 $ (71)
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)
As of July 25, 2015, 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 25, 2015, 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 25, 2015.
The Company has evaluated its publicly traded equity securities as of July 25, 2015 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 25, 2015 (in millions):
Amortized Cost Fair Value
Less than 1 year ........................................................................... $ 16,534 $ 16,540
Due in 1 to 2 years ........................................................................ 15,264 15,279
Due in 2 to 5 years ........................................................................ 18,501 18,499
Due after 5 years .......................................................................... 1,653 1,656
Total ................................................................................. $ 51,952 $ 51,974
Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain
obligations. The remaining contractual principal maturities for mortgage-backed securities were allocated assuming no
prepayments.
96