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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Gross unrealized gains on these investments were $2.9 million and $6.7 million at December 31, 2006 and 2005, respectively. Gross unrealized losses
on these investments were $19.6 million and $40.0 million at December 31, 2006 and 2005, respectively. Gross realized gains on these investments were
$17.9 million, $4.9 million and $18.4 million in 2006, 2005 and 2004, respectively. Gross realized losses on these investments were $45.7 million, $63.8
million and $30.1 million in 2006, 2005 and 2004, respectively.
The effective maturities of investments held at December 31, 2006 and 2005 are as follows (tables in thousands):
December 31, 2006
Amortized
Cost Basis
Aggregate
Fair Value
Due within one year $ 1,525,653 $ 1,521,925
Due after one year through 8 years 2,259,280 2,246,290
Total $ 3,784,933 $ 3,768,215
December 31, 2005
Amortized
Cost Basis
Aggregate
Fair Value
Due within one year $ 1,623,799 $ 1,615,495
Due after one year through 8 years 3,442,632 3,417,589
Total $ 5,066,431 $ 5,033,084
Unrealized losses on investments at December 31, 2006 by investment category and length of time the investment has been in a continuous unrealized
loss position are as follows (table in thousands):
Less Than 12 Months
12 Months or Greater
Total
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
U.S. government and agency obligations $ 470,747 $ 1,835 $ 339,920 $ 4,447 $ 810,667 $ 6,282
U.S. corporate debt securities 144,765 479 310,529 3,467 455,294 3,946
Asset and mortgage-backed securities 180,035 615 345,634 5,677 525,669 6,292
Municipal obligations 213,574 735 185,677 2,122 399,251 2,857
Foreign debt securities 15,318 51 26,283 143 41,601 194
Total $ 1,024,439 $ 3,715 $ 1,208,043 $ 15,856 $ 2,232,482 $ 19,571
We evaluate investments with unrealized losses to determine if the losses are other than temporary. The gross unrealized losses were due to changes in
interest rates. We have determined that the gross unrealized losses at December 31, 2006 are temporary. In making this determination, we considered the
financial condition and near-term prospects of the issuers, the magnitude of the losses compared to the investments' cost, the length of time the investments
have been in an unrealized loss position and our ability to hold the investment to maturity.
The following table summarizes our strategic investments at December 31, 2006 and 2005 (table in thousands). The investments are classified within
other assets, net, in the balance sheet. Fair value for publicly-traded investments is determined based upon quoted prices. Fair value is not available for
privately-held investments.
December 31, 2006
December 31, 2005
Cost Fair Value Cost Fair Value