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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following table provides a summary of changes in fair value of our Level 3 financial assets for the years ended December 31, 2010 and 2009 (table
in thousands):
2010 2009
Balance, beginning of the year $ 234,452 $ 199,169
Transfers in from acquisitions — 30,648
Sales (56,755) (7,248)
Calls (40,912) —
Decrease in previously recognized unrealized losses included in other comprehensive income (loss) 9,259 11,883
Balance, end of the year $ 146,044 $ 234,452
During 2010, we had $97.6 million of sales and calls of our auction rate securities. They were all at par value.
Unrealized losses on investments at December 31, 2010 and 2009 by investment category and length of time the investment has been in a continuous
unrealized loss position are as follows (tables in thousands):
December 31, 2010 Less Than 12 Months 12 Months or Greater Total
Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
U.S. government and agency obligations $ 491,897 $ (2,569) $ 5,474 $ (105) $ 497,371 $ (2,674)
U.S. corporate debt securities 291,157 (1,307) — — 291,157 (1,307)
High yield corporate debt securities 66,537 (1,943) — — 66,537 (1,943)
Asset-backed securities 6,998 — 5 (1) 7,003 (1)
Municipal obligations 599,814 (3,266) — — 599,814 (3,266)
Auction rate securities — — 146,044 (9,906) 146,044 (9,906)
Foreign debt securities 104,934 (714) — — 104,934 (714)
Total $ 1,561,337 $ (9,799) $ 151,523 $ (10,012) $ 1,712,860 $ (19,811)
December 31, 2009 Less Than 12 Months 12 Months or Greater Total
Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
U.S. government and agency obligations $ 490,483 $ (2,938) $ 1,363 $ (44) $ 491,846 $ (2,982)
U.S. corporate debt securities 78,706 (351) 3,012 (161) 81,718 (512)
High yield corporate debt securities 60,865 (724) — — 60,865 (724)
Asset-backed securities 5 (1) — — 5 (1)
Municipal obligations 46,618 (118) — — 46,618 (118)
Auction rate securities — — 234,452 (19,165) 234,452 (19,165)
Foreign debt securities 144,761 (538) — — 144,761 (538)
Total $ 821,438 $ (4,670) $ 238,827 $ (19,370) $ 1,060,265 $ (24,040)
Investment Losses
For all of our securities where the amortized cost basis was greater than the fair value at December 31, 2010, we have concluded that currently we
neither plan to sell the security nor is it more likely than not that we would be required to sell the security before its anticipated recovery. In making the
determination as to whether the unrealized loss is other-than-temporary, we considered the length of time and extent the investment has been in an unrealized
loss position, the financial condition and near-term prospects of the issuers, the issuers' credit rating, third party guarantees and the time to maturity.
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