Microsoft 2010 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2010 Microsoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

53
The table below reconciles the total Net Fair Value of assets above to the balance sheet presentation of these same
assets in Note 4 – Investments for June 30, 2010 and 2009.
(In millions)
June 30, 2010 2009
Net fair value of assets measured at fair value on a recurring basis $ 42,645 $ 33,724
Cash 1,661 2,064
Common and preferred stock measured at fair value on a nonrecurring basis 216 204
Other investments measured at fair value on a nonrecurring basis 502 465
Derivative assets classified as other current assets (597) (465)
Derivative liabilities under master netting agreements classified as other current assets 53 231
Other 62 157
Recorded basis of investment components $ 44,542 $ 36,380
Changes in Financial Instruments Measured at Level 3 Fair Value on a Recurring Basis
The following tables present the changes during the fiscal years 2010 and 2009 in our Level 3 financial instruments
that are measured at fair value on a recurring basis. The majority of these instruments consist of investment
securities classified as available-for-sale with changes in fair value included in OCI.
(In millions)
Corporate
Notes and
Bonds
Common
and
Preferred
Stock
Derivative
Assets Total
Y
ear Ended June 30, 2010
Balance, beginning of period $ 253 $ 5
$ 5 $ 263
Total realized and unrealized gains (losses):
Included in other income (expense) 6 0
4 10
Included in other comprehensive income (92) 0
0 (92)
Balance, end of period $167 $ 5
$ 9 $ 181
Change in unrealized gains (losses) included in other income (expense)
related to assets held as of June 30, 2010 $ 6 $ 0
$ 4 $ 10
(In millions)
Corporate
Notes and
Bonds
Common
and
Preferred
Stock
Derivative
Assets Total
Y
ear Ended June 30, 2009
Balance, beginning of period $ 138 $ 8
$ 71 $ 217
Total realized and unrealized gains (losses):
Included in other income (expense) (6) (6 )
51 39
Included in other comprehensive income 111 0
0 111
Purchases, issuances, and settlements 0 5
(119) (114)
Transfers in (out) 10 (2 )
2 10
Balance, end of period $ 253 $ 5
$ 5 $ 263
Change in unrealized gains (losses) included in other income (expense)
related to assets held as of June 30, 2009 $(7)$ (5 )
$ 4 $(8)
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
During fiscal years 2010 and 2009, impairment charges of $5 million and $86 million, respectively, were recognized
for certain investments measured at fair value on a nonrecurring basis, as the decline in their respective fair values
below their cost was determined to be other than temporary in all instances. At June 30, 2010 and 2009, the fair