Note 7: Available-for-Sale Investments

Available-for-sale investments as of July 2, 2011 and December 25, 2010 were as follows:

In the preceding table, government bonds include bonds issued or deemed to be guaranteed by government entities, such as instruments issued by non-U.S. governments, U.S. Treasury securities, FDIC-insured corporate bonds, and U.S. agency securities. Bank deposits were primarily issued by institutions outside the U.S. as of July 2, 2011 and December 25, 2010.

The amortized cost and fair value of available-for-sale debt investments as of July 2, 2011, by contractual maturity, were as follows:

Instruments not due at a single maturity date in the table above includes asset-backed securities and money market fund deposits.

We sold available-for-sale investments for proceeds of $1.2 billion in the second quarter of 2011 and $8.8 billion in the first half of 2011 ($44 million in the second quarter of 2010 and $337 million in the first half of 2010). Substantially all of the proceeds in the first half of 2011 were from debt investments that were primarily used to fund our acquisition of McAfee. The gross realized gains on sales of available-for-sale investments were $36 million in the second quarter of 2011 and $64 million in the first half of 2011 ($12 million in the second quarter of 2010 and $79 million in the first half of 2010) and were primarily related to our sales of marketable equity securities. We determine the cost of an investment sold on an average cost basis at the individual security level.

The before-tax net unrealized holding gains (losses) on available-for-sale investments that have been included in other comprehensive income (loss) and the before-tax net gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings were as follows: