Cash and Investments (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents, and marketable securities consisted of the following (in millions):

	As of December 31, 2011		As of June 30, 2012
			(unaudited)
Cash and cash equivalents:
Cash	$	4,712	$	7,463
Cash equivalents:
Time deposits		534		436
Money market and other funds (1)		4,462		7,538
U.S. government agencies		275		0
Total cash and cash equivalents		9,983		15,437
Marketable securities:
Time deposits		495		404
U.S. government agencies		6,226		2,184
U.S. government notes		11,579		8,933
Foreign government bonds		1,629		1,606
Municipal securities		1,794		1,382
Corporate debt securities		6,112		6,118
Agency residential mortgage-backed securities		6,501		6,942
Marketable equity securities		307		116
Total marketable securities		34,643		27,685
Total cash, cash equivalents, and marketable securities	$	44,626	$	43,122

⁽¹⁾ The balances at December 31, 2011 and June 30, 2012 included $1.3 billion and $1.4 billion of cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See below for further discussion on this program.

Available-for-sale Securities

The following tables summarize unrealized gains and losses related to our investments in marketable securities designated as available-for-sale (in millions):

	As of December 31, 2011
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Time deposits	$	495	$	0	$	0		$	495
U.S. government agencies		6,211		15		0			6,226
U.S. government notes		11,475		104		0			11,579
Foreign government bonds		1,608		32		(11	)		1,629
Municipal securities		1,775		19		0			1,794
Corporate debt securities		6,023		187		(98	)		6,112
Agency residential mortgage-backed securities		6,359		147		(5	)		6,501
Marketable equity securities		228		79		0			307
Total	$	34,174	$	583	$	(114	)	$	34,643

	As of June 30, 2012
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(unaudited)
Time deposits	$	404	$	0	$	0		$	404
U.S. government agencies		2,166		18		0			2,184
U.S. government notes		8,852		81		0			8,933
Foreign government bonds		1,562		50		(6	)		1,606
Municipal securities		1,364		18		0			1,382
Corporate debt securities		5,877		273		(32	)		6,118
Agency residential mortgage-backed securities		6,796		149		(3	)		6,942
Marketable equity securities		127		6		(17	)		116
Total	$	27,148	$	595	$	(58	)	$	27,685

Investments Classified by Contractual Maturity Date

The following table summarizes the estimated fair value of our investments in marketable securities, excluding marketable equity securities, designated as available-for-sale and classified by the contractual maturity date of the securities (in millions):

	As of June 30, 2012
	(unaudited)
Due in 1 year	$	5,753
Due in 1 year through 5 years		8,300
Due in 5 years through 10 years		5,301
Due after 10 years		8,215
Total	$	27,569

Schedule of Unrealized Loss on Investments

The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2011 and June 30, 2012, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions):

	As of December 31, 2011
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Foreign government bonds	$	302	$	(11	)	$	6	$	0		$	308	$	(11	)
Corporate debt securities		2,160		(97	)		17		(1	)		2,177		(98	)
Agency residential mortgage-backed securities		716		(3	)		19		(2	)		735		(5	)
Total	$	3,178	$	(111	)	$	42	$	(3	)	$	3,220	$	(114	)

	As of June 30, 2012
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(unaudited)
Foreign government bonds	$	397	$	(4	)	$	9	$	(2	)	$	406	$	(6	)
Corporate debt securities		827		(24	)		157		(8	)		984		(32	)
Agency residential mortgage-backed securities		704		(3	)		0		0			704		(3	)
Marketable equity securities		93		(17	)		0		0			93		(17	)
Total	$	2,021	$	(48	)	$	166	$	(10	)	$	2,187	$	(58	)