| CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES |
Note 2—CASH, CASH
EQUIVALENTS, AND MARKETABLE SECURITIES
As of
December 31, 2012 and 2011, our cash, cash equivalents, and
marketable securities primarily consisted of cash, U.S. and foreign
government and agency securities, AAA-rated money market funds, and
other investment grade securities. Our marketable fixed-income
securities have effective maturities of less than 5 years.
Cash equivalents and marketable securities are recorded at fair
value. The following table summarizes, by major security type, our
cash, cash equivalents, and marketable securities that are measured
at fair value on a recurring basis and are categorized using the
fair value hierarchy (in millions):
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December 31,
2012 |
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Cost or
Amortized
Cost |
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|
Gross
Unrealized
Gains |
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|
Gross
Unrealized
Losses |
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Total
Estimated
Fair
Value |
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Cash
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$ |
2,595 |
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|
— |
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|
— |
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|
$ |
2,595 |
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Level 1
securities:
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|
Money market
funds
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5,561 |
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|
— |
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|
— |
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|
5,561 |
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Equity
securities
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|
2 |
|
|
|
— |
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|
— |
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|
2 |
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|
Level 2
securities:
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Foreign government and
agency securities
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|
763 |
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9 |
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— |
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|
772 |
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U.S. government and agency
securities
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|
1,809 |
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3 |
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(2 |
) |
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|
1,810 |
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Corporate debt
securities
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|
719 |
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6 |
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— |
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|
725 |
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Asset-backed
securities
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|
49 |
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|
— |
|
|
|
— |
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|
49 |
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Other fixed income
securities
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|
33 |
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|
|
— |
|
|
|
— |
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|
33 |
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|
$ |
11,531 |
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$ |
18 |
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|
$ |
(2 |
) |
|
$ |
11,547 |
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Less: Restricted cash, cash
equivalents, and marketable securities (1)
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(99 |
) |
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Total cash, cash
equivalents, and marketable securities
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$ |
11,448 |
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December 31,
2011 |
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| |
|
Cost or
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
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|
Total
Estimated
Fair
Value |
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Cash
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$ |
1,207 |
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|
— |
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|
— |
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|
$ |
1,207 |
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Level 1
securities:
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Money market
funds
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|
3,651 |
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|
|
— |
|
|
|
— |
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|
3,651 |
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Equity
securities
|
|
|
2 |
|
|
|
— |
|
|
|
(1 |
) |
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1 |
|
|
Level 2
securities:
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Foreign government and
agency securities
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1,627 |
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14 |
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(1 |
) |
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|
1,640 |
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U.S. government and agency
securities
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|
2,592 |
|
|
|
3 |
|
|
|
(2 |
) |
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|
2,593 |
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Corporate debt
securities
|
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|
562 |
|
|
|
3 |
|
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(2 |
) |
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|
563 |
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Asset-backed
securities
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|
56 |
|
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|
— |
|
|
|
(1 |
) |
|
|
55 |
|
|
Other fixed income
securities
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|
22 |
|
|
|
— |
|
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|
— |
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|
22 |
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$ |
9,719 |
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|
$ |
20 |
|
|
$ |
(7 |
) |
|
$ |
9,732 |
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Less: Restricted cash, cash
equivalents, and marketable securities (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
(156 |
) |
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Total cash, cash
equivalents, and marketable securities
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|
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$ |
9,576 |
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| (1) |
We are required to pledge
or otherwise restrict a portion of our cash, cash equivalents, and
marketable securities as collateral for standby and trade letters
of credit, guarantees, debt, and real estate lease agreements. We
classify cash and marketable securities with use restrictions of
less than twelve months as “Accounts receivable, net and
other” and of twelve months or longer as non-current
“Other assets” on our consolidated balance sheets. See
“Note 8—Commitments and
Contingencies.” |
The following
table summarizes gross gains and gross losses realized on sales of
available-for-sale marketable securities (in millions):
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Year Ended
December 31, |
|
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2012 |
|
|
2011 |
|
|
2010 |
|
|
Realized gains
|
|
$ |
20 |
|
|
$ |
15 |
|
|
$ |
5 |
|
|
Realized losses
|
|
|
10 |
|
|
|
11 |
|
|
|
4 |
|
The following
table summarizes the maturities of our cash equivalent and
marketable fixed-income securities as of December 31, 2012 (in
millions):
|
|
|
|
|
|
|
|
|
| |
|
Amortized
Cost |
|
|
Estimated
Fair Value |
|
|
Due within one
year
|
|
$ |
6,689 |
|
|
$ |
6,691 |
|
|
Due after one year through
five years
|
|
|
1,968 |
|
|
|
1,981 |
|
|
Due after five
years
|
|
|
277 |
|
|
|
278 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
8,934 |
|
|
$ |
8,950 |
|
|
|
|
|
|
|
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|
|
Actual
maturities may differ from the contractual maturities because
borrowers may have certain prepayment conditions.
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