Texas Instruments 2007 Annual Report Download - page 22

20 TEXAS INSTRUMENTS 2007 ANNUAL REPORT
All of the mortgage-backed securities we held as of December 31, 2007, were AAA-rated as of that date. About one half of these
securities are guaranteed by a government-sponsored entity such as the Federal National Mortgage Association, the Government
National Mortgage Association or the Federal Home Loan Mortgage Corporation. The remaining mortgage-backed securities were
issued from 2003 through 2005 and are of a senior/subordinated structure in which we own the most senior bonds.
The following table presents the aggregate maturities or average lives of cash equivalents and short-term investments at year-end
2007:
Due Market Value
One year or less ................................................................................ $ 1,200
One to three years .............................................................................. 271
Three to ten years .............................................................................. 197
Thereafter (a).................................................................................. 1,032
(a) Maturities over 10 years are primarily auction-rate securities.
There were no unrealized gains on cash equivalents and short-term investments for the years ending December 31, 2007, 2006 or
2005. Unrealized losses were $14 million, $23 million and $25 million, respectively, for these time periods. Unrealized losses for the
years ending December 31, 2007 and 2006, were primarily associated with mortgage-backed securities that have been in an unrealized
loss position for more than 12 months. These unrealized losses are the result of increases in market interest rates rather than changes
in the credit quality of the securities.
We have determined that our investment in these securities were not other-than-temporarily impaired as we have the ability and
intent to hold these investments until their value can be recovered, which may include holding them to their respective maturity dates.
Through December 31, 2007, we have collected all principal and interest payable on these securities when due and expect to continue
to do so.
Proceeds from sales of these securities before their maturity were $2.12 billion, $5.34 billion and $4.18 billion in 2007, 2006 and 2005.
Gross realized gains and losses from the sales of these securities were immaterial for all periods presented.
4. Long-term Investments
Details of long-term investments are as follows:
December 31,
2007 2006
Equity investments:
Marketable ............................................................................ $ 7 $ 5
Non-marketable ........................................................................ 44 52
Venture capital funds:
Equity method.......................................................................... 65 55
Cost method ........................................................................... 3 3
Mutual funds ............................................................................ 148 172
Total................................................................................... $ 267 $ 287
There were $6 million, $6 million and $13 million of gross realized gains and zero, zero and $3 million of gross realized losses from
sales of these investments in 2007, 2006 and 2005. Other-than-temporary declines and impairments in the values of long-term
investments recognized in the income statement were $18 million, $8 million and $8 million in 2007, 2006 and 2005.