Quarterly report pursuant to Section 13 or 15(d)

Available-for-Sale Investments

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Available-for-Sale Investments
3 Months Ended
Mar. 31, 2012
Available-for-Sale Securities [Abstract]  
Available-for-Sale Investments [Text Block]

Note 5: Available-for-Sale Investments

 

Available-for-sale investments as of March 31, 2012 and December 31, 2011 were as follows:

  March 31, 2012   December 31, 2011
        Gross   Gross               Gross   Gross      
  Adjusted   Unrealized   Unrealized   Fair   Adjusted   Unrealized   Unrealized   Fair
(In Millions) Cost   Gains   Losses   Value   Cost   Gains   Losses   Value
Government bonds $ 3,510   $ 1   $ (2)   $ 3,509   $ 4,131   $   $ (4)   $ 4,127
Commercial paper   3,162         (1)     3,161     3,820         (3)     3,817
Bank deposits   1,252     1         1,253     1,046     1     (1)     1,046
Marketable equity securities   208     613     (2)     819     189     385     (12)     562
Corporate bonds   746     13     (4)     755     892     14     (9)     897
Money market fund deposits   471             471     546             546
Asset-backed securities   18         (3)     15     48         (12)     36
Total available-for-sale                                              
investments $ 9,367   $ 628   $ (12)   $ 9,983   $ 10,672   $ 400   $ (41)   $ 11,031

In the preceding table, government bonds include bonds issued or deemed to be guaranteed by government entities. Government bonds include instruments such as U.S. Treasury securities, non-U.S. government bonds, and U.S. agency securities as of March 31, 2012 and December 31, 2011.

 

The amortized cost and fair value of available-for-sale debt investments as of March 31, 2012, by contractual maturity, were as follows:

(In Millions) Cost   Fair Value
Due in 1 year or less $ 8,187   $ 8,194
Due in 1–2 years   218     223
Due in 2–5 years   262     259
Due after 5 years   3     2
Instruments not due at a single maturity date   489     486
Total $ 9,159   $ 9,164

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

 

In the first quarter of 2012, we sold available-for-sale investments for proceeds of $333 million ($7.6 billion in the first quarter of 2011). The gross realized gains on sales of available-for-sale investments were insignificant in the first quarter of 2012 ($28 million in the first quarter of 2011) 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:

  Three Months Ended
  March 31,   April 2,
(In Millions) 2012   2011
Net unrealized holding gains (losses) included in other comprehensive income (loss) $ 252   $ 36
Net gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings $ (5)   $ 44