Microsoft 2015 Annual Report Download - page 55

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54
Unrealized Losses on Investments
Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related
fair values were as follows:
Less than 12 Months 12 Months or Greater
Total
Unrealized
Losses
(In millions) Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
Total
Fair Value
June 30, 2015
U.S. government and agency securities $6,636 $ (9) $ 421 $ (21 ) $ 7,057 $ (30)
Foreign government bonds 4,611 (12) 18 (12 ) 4,629 (24)
Mortgage- and asset-backed securities 3,171 $ (5) 28 (1 ) 3,199 (6)
Corporate notes and bonds 2,946 (29) 104 (8 ) 3,050 (37)
Municipal securities 36 (1) 0 0 36 (1)
Common and preferred stock 1,389 (180) 148 (35 ) 1,537 (215)
Total $ 18,789 $ (236) $ 719 $ (77 ) $ 19,508 $ (313)
Less than 12 Months 12 Months or Greater
Total
Unrealized
Losses
(In millions) Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
Total
Fair Value
June 30, 2014
U.S. government and agency securities $4,161 $ (29) $850 $ 0 $ 5,011 $(29)
Foreign government bonds 566 (4) 21 (6 ) 587 (10)
Mortgage- and asset-backed securities 120 0 61 (2 ) 181 (2)
Corporate notes and bonds 1,154 (8) 34 (1 ) 1,188 (9)
Common and preferred stock 463 (48) 257 (33 ) 720 (81)
Total $ 6,464 $ (89) $ 1,223 $ (42 ) $ 7,687 $ (131)
Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Unrealized
losses from domestic and international equities are due to market price movements. Management does not believe
any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available
evidence as of June 30, 2015.
Debt Investment Maturities
(In millions) Cost Basis
Estimated
Fair Value
June 30, 2015
Due in one year or less $ 53,616 $53,645
Due after one year through five years 33,260 33,336
Due after five years through 10 years 3,180 3,161
Due after 10 years 1,547 1,597
Total $ 91,603 $ 91,739
NOTE 5 — DERIVATIVES
We use derivative instruments to manage risks related to foreign currencies, equity prices, interest rates, and credit;
to enhance investment returns; and to facilitate portfolio diversification. Our objectives for holding derivatives include
reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible.
Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment. All
notional amounts presented below are measured in U.S. dollar equivalents.