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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
lack of liquidity for auction rate securities, we have classified these as long-term investments as of December 31, 2011 and 2010. At December 31, 2011 and
2010, all of our short- and long-term investments, excluding auction rate securities, were recognized at fair value, which was determined based upon
observable inputs from our pricing vendors for identical or similar assets. At December 31, 2011 and 2010, auction rate securities were valued using a
discounted cash flow model.
The following tables summarize the composition of our short- and long-term investments at December 31, 2011 and 2010 (tables in thousands):
December 31, 2011
Amortized
Cost
Unrealized
Gains
Unrealized
(Losses)
Aggregate
Fair Value
U.S. government and agency obligations $ 2,474,029 $ 12,420 $ (1,488) $ 2,484,961
U.S. corporate debt securities 1,400,373 9,953 (2,573) 1,407,753
High yield corporate debt securities 442,723 12,498 (7,742) 447,479
Asset-backed securities 29,101 72 (25) 29,148
Municipal obligations 814,657 2,021 (597) 816,081
Auction rate securities 82,900 — (8,304) 74,596
Foreign debt securities 984,696 5,185 (2,807) 987,074
Total fixed income securities 6,228,479 42,149 (23,536) 6,247,092
Publicly traded equity securities 58,199 6,802 — 65,001
Total $ 6,286,678 $ 48,951 $ (23,536) $ 6,312,093
We held approximately $987.1 million in foreign debt securities at December 31, 2011. These securities have an average credit rating of AA-, and
approximately 9% of these securities are deemed sovereign debt with an average credit rating of AA+. None of the securities deemed sovereign debt are from
Greece, Italy, Ireland, Portugal or Spain. Additionally, we have an immaterial amount of exposure to French agencies and financial institutions.
December 31, 2010
Amortized
Cost
Unrealized
Gains
Unrealized
(Losses)
Aggregate
Fair Value
U.S. government and agency obligations $ 1,737,782 $ 11,286 $ (2,674) $ 1,746,394
U.S. corporate debt securities 1,239,325 13,608 (1,307) 1,251,626
High yield corporate debt securities 421,469 18,306 (1,943) 437,832
Asset-backed securities 34,730 152 (1) 34,881
Municipal obligations 1,095,338 3,829 (3,266) 1,095,901
Auction rate securities 155,950 — (9,906) 146,044
Foreign debt securities 653,251 6,878 (714) 659,415
Total fixed income securities 5,337,845 54,059 (19,811) 5,372,093
Publicly traded equity securities 22,376 32,448 — 54,824
Total $ 5,360,221 $ 86,507 $ (19,811) $ 5,426,917
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