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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, 2011 and 2010 (table
in thousands):
2011 2010
Balance, beginning of the year $ 146,044 $ 234,452
Sales — (56,755)
Calls, at par value (73,050) (40,912)
(Increase) decrease in previously recognized unrealized losses included in other comprehensive loss 1,602 9,259
Balance, end of the year $ 74,596 $ 146,044
At December 31, 2011 and 2010, we had $159.8 million and $66.4 million, respectively, in strategic investments held at cost included in other assets,
net on the consolidated balance sheets. The fair value of these investments is considered to review for impairments if any events and changes in circumstances
occur that might have a significant adverse effect on their value.
Unrealized losses on investments at December 31, 2011 and 2010 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, 2011 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 $ 618,510 $ (1,434) $ 2,107 $ (54) $ 620,617 $ (1,488)
U.S. corporate debt securities 449,404 (2,573) — — 449,404 (2,573)
High yield corporate debt securities 131,112 (7,211) 840 (531) 131,952 (7,742)
Asset-backed securities 20,016 (24) 5 (1) 20,021 (25)
Municipal obligations 303,988 (566) 8,054 (31) 312,042 (597)
Auction rate securities — — 74,596 (8,304) 74,596 (8,304)
Foreign debt securities 372,531 (2,807) — — 372,531 (2,807)
Total $ 1,895,561 $ (14,615) $ 85,602 $ (8,921) $ 1,981,163 $ (23,536)
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)
Investment Losses
As of December 31, 2011, there were no publicly traded equity securities in a continuous unrealized loss position. For all of our securities where the
amortized cost basis was greater than the fair value at December 31, 2011, 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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