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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
December 31, 2008
Amortized
Cost
Unrealized
Gains
Unrealized
(Losses)
Aggregate
Fair Value
Other-than-
Temporary
Impairments
U.S. government and agency obligations $ 1,102,740 $ 28,040 $ (250) $ 1,130,530 $ —
U.S. corporate debt securities 462,790 1,193 (12,170) 451,813 —
Asset and mortgage-backed securities 304,768 7 (41,391) 263,384 (2,690)
Municipal obligations 1,231,314 15,786 (3,792) 1,243,308 —
Auction rate securities 230,217 — (31,048) 199,169 —
Foreign debt securities 45,943 560 (922) 45,581 —
Total $ 3,377,772 $ 45,586 $ (89,573) $ 3,333,785 $ (2,690)
The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of December 31, 2009 and 2008
(in thousands):
December 31, 2009
Level 1 Level 2 Level 3 Total
Cash $ 1,201,026 $ — $ — $ 1,201,026
Cash equivalents 5,101,473 — — 5,101,473
U.S. government and agency obligations 621,726 470,086 — 1,091,812
U.S. corporate debt securities — 878,245 — 878,245
Asset and mortgage-backed securities — 14,474 — 14,474
Municipal obligations — 590,474 — 590,474
Auction rate securities — — 234,452 234,452
Foreign debt securities — 275,705 — 275,705
Total cash and investments $ 6,924,225 $ 2,228,984 $ 234,452 $ 9,387,661
Other items:
Foreign exchange derivative assets $ — $ 15,136 $ — $ 15,136
Foreign exchange derivative liabilities — (23,275) — (23,275)
December 31, 2008
Level 1 Level 2 Level 3 Total
Cash $ 1,336,165 $ — $ — $ 1,336,165
Cash equivalents 4,275,441 232,079 — 4,507,520
U.S. government and agency obligations 612,793 517,737 — 1,130,530
U.S. corporate debt securities — 451,813 — 451,813
Asset and mortgage-backed securities — 263,384 — 263,384
Municipal obligations — 1,243,308 — 1,243,308
Auction rate securities — — 199,169 199,169
Foreign debt securities — 45,581 — 45,581
Total cash and investments $ 6,224,399 $ 2,753,902 $ 199,169 $ 9,177,470
Other items:
Foreign exchange derivative assets $ — $ 44,042 $ — $ 44,042
Foreign exchange derivative liabilities — (39,950) — (39,950)
Our auction rate securities are predominantly rated AAA and are primarily collateralized by student loans. The underlying loans of all but two of our
auction rate securities, with a market value of $18.6 million, have partial guarantees by the U.S. government as part of the Federal Family Education Loan
Program ("FFELP") through the U.S. Department of Education. FFELP guarantees at least 95.0% of the loans which collateralize the auction rate securities.
The two securities whose underlying loans are not guaranteed by the U.S. government have credit enhancements and are insured by third party agencies. We
believe the quality of the collateral underlying all of our auction rate securities will enable us to recover our principal balance in full.
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