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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The unrealized loss is expected to be reclassified into the statement of operations in 2005.
F. Fair Value of Financial Instruments
Fair Value
The carrying amounts reflected in our consolidated balance sheets for cash and cash equivalents, accounts and notes receivable, current portion of long-
term debt and accounts and notes payable approximate fair value due to the short maturities of these instruments.
The fair value of our long-term convertible debt at December 31, 2004 was $140.9 million, compared to a carrying amount of $128.5 million. The fair
value is based upon the trading price of the debt.
Investments
The following tables summarize the composition of our available for sale, short and long-term investments, at December 31, 2004 and 2003 (tables in
thousands). Fair value was determined based upon quoted market prices for the security.
December 31, 2004
Amortized Aggregate
Cost Basis Fair Value
U.S. government and agency obligations $ 2,769,760 $ 2,751,815
U.S. corporate debt securities 1,220,526 1,213,988
Asset and mortgage-backed securities 1,009,970 1,001,940
Bank loans 533,169 538,203
Auction rate securities 273,675 273,675
Foreign debt securities 185,648 184,342
Total $ 5,992,748 $ 5,963,963
December 31, 2003
Amortized Aggregate
Cost Basis Fair Value
U.S. government and agency obligations $ 2,303,298 $ 2,308,869
U.S. corporate debt securities 1,369,701 1,379,402
Asset and mortgage-backed securities 854,731 856,771
Bank loans 384,447 386,488
Auction rate securities 116,450 116,450
Foreign debt securities 105,663 106,629
Total $ 5,134,290 $ 5,154,609
Gross unrealized gains on these investments were $9.7 million and $29.1 million at December 31, 2004 and 2003, respectively. Gross unrealized losses on
these investments were $38.5 million and $8.8 million at December 31, 2004 and 2003, respectively. Gross realized gains on these investments were
$18.4 million, $48.1 million and $72.2 million in 2004, 2003 and 2002, respectively. Gross realized losses on these investments were $30.1 million,
$17.6 million and $9.2 million in 2004, 2003 and 2002, respectively. 76