Microsoft 2015 Annual Report Download - page 54

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53
(In millions) Cost Basis
Unrealized
Gains
Unrealized
Losses
Recorded
Basis
Cash
and Cash
Equivalents
Short-term
Investments
Equity
and Other
Investments
June 30, 2014
Cash $ 4,980 $ 0 $0 $4,980 $4,980 $ 0 $0
Mutual funds 590 0 0 590 590 0 0
Commercial paper 189 0 0 189 89 100 0
Certificates of deposit 1,197 0 0 1,197 865 332 0
U.S. government and
agency securities 66,952 103 (29) 67,026 109 66,917 0
Foreign government
bonds 3,328 17 (10) 3,335 2,027 1,308 0
Mortgage- and asset-
backed securities 991 30 (2) 1,019 0 1,019 0
Corporate notes and
bonds 6,845 191 (9) 7,027 9 7,018 0
Municipal securities 287 45 0 332 0 332 0
Common and preferred
stock 6,785 5,207 (81) 11,911 0 0 11,911
Other investments 1,164 0 0 1,164 0 14 1,150
Total $ 93,308 $ 5,593 $ (131) $ 98,770 $ 8,669 $ 77,040 $ 13,061
In addition to the investments in the table above, we also own corporate notes that are classified as held-to-maturity
investments, which are included in equity and other investments on the balance sheet. These corporate notes are
due October 31, 2023 and are measured at fair value on a nonrecurring basis. As of June 30, 2015, the amortized
cost and recorded basis of these corporate notes were both $25 million with an estimated fair value that
approximates the carrying value. As of June 30, 2014, the amortized cost, recorded basis, and estimated fair value of
these corporate notes was $1.5 billion, $1.5 billion, and $1.7 billion, respectively, while their associated gross
unrealized holding gains were $164 million.
As of June 30, 2015 and 2014, the recorded bases of common and preferred stock that are restricted for more than
one year or are not publicly traded were $561 million and $520 million, respectively. These investments are carried at
cost and are reviewed quarterly for indicators of other-than-temporary impairment. It is not practicable for us to
reliably estimate the fair value of these investments.
We lend certain fixed-income and equity securities to increase investment returns. These transactions are accounted
for as secured borrowings and the loaned securities continue to be carried as investments on our balance sheet.
Cash and/or security interests are received as collateral for the loaned securities with the amount determined based
upon the underlying security lent and the creditworthiness of the borrower. As of June 30, 2015, collateral received
under these agreements totaled $92 million which is comprised of $79 million of certificates of deposit and $13
million of U.S. government and agency securities. The contractual maturities of these agreements are primarily on a
continuous and overnight basis.