Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Composition of Investments

The following tables summarize the composition of our short- and long-term investments at March 31, 2013 and December 31, 2012 (tables in thousands):

	March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,077,989	$	8,548	$	(1,451	)	$	2,085,086
U.S. corporate debt securities	1,512,318		8,924		(436		)	1,520,806
High yield corporate debt securities	496,222		33,603		(766		)	529,059
Asset-backed securities	3,731		3		(4		)	3,730
Municipal obligations	966,539		4,799		(45		)	971,293
Auction rate securities	72,076		—		(3,829		)	68,247
Foreign debt securities	1,408,091		8,092		(720		)	1,415,463
Total fixed income securities	6,536,966		63,969		(7,251		)	6,593,684
Publicly traded equity securities	70,374		40,313		(616		)	110,071
Total	$	6,607,340	$	104,282	$	(7,867	)	$	6,703,755

	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,190,957	$	10,225	$	(967	)	$	2,200,215
U.S. corporate debt securities	1,480,026		10,189		(509		)	1,489,706
High yield corporate debt securities	485,799		34,223		(800		)	519,222
Asset-backed securities	2,115		3		—			2,118
Municipal obligations	1,032,320		3,007		(540		)	1,034,787
Auction rate securities	73,545		—		(3,365		)	70,180
Foreign debt securities	1,270,035		9,082		(255		)	1,278,862
Total fixed income securities	6,534,797		66,729		(6,436		)	6,595,090
Publicly traded equity securities	46,665		40,548		(731		)	86,482
Total	$	6,581,462	$	107,277	$	(7,167	)	$	6,681,572

Fair Value Hierarchy For Financial Assets And Liabilities Measured At Fair Value

The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013
	Level 1		Level 2			Level 3		Total
Cash	$	1,622,174	$	—		$	—	$	1,622,174
Cash equivalents	3,225,860		456,271			—		3,682,131
U.S. government and agency obligations	1,137,609		947,477			—		2,085,086
U.S. corporate debt securities	—		1,520,806			—		1,520,806
High yield corporate debt securities	—		529,059			—		529,059
Asset-backed securities	—		3,730			—		3,730
Municipal obligations	—		971,293			—		971,293
Auction rate securities	—		—			68,247		68,247
Foreign debt securities	—		1,415,463			—		1,415,463
Publicly traded equity securities	110,071		—			—		110,071
Total cash and investments	$	6,095,714	$	5,844,099		$	68,247	$	12,008,060
Other items:
Strategic investments held at cost	$	—	$	—		$	325,437	$	325,437
Investment in joint venture	—		—			33,226		33,226
Convertible debt	—		(2,534,038		)	—		(2,534,038		)
Foreign exchange derivative assets	—		22,261			—		22,261
Foreign exchange derivative liabilities	—		(40,403		)	—		(40,403		)
Commodity derivative assets	—		75			—		75

	December 31, 2012
	Level 1		Level 2			Level 3		Total
Cash	$	1,493,843	$	—		$	—	$	1,493,843
Cash equivalents	2,898,183		362,034			—		3,260,217
U.S. government and agency obligations	1,324,919		871,290			—		2,196,209
U.S. corporate debt securities	—		1,480,450			—		1,480,450
High yield corporate debt securities	—		510,412			—		510,412
Asset-backed securities	—		2,117			—		2,117
Municipal obligations	—		1,022,889			—		1,022,889
Auction rate securities	—		—			70,086		70,086
Foreign debt securities	—		1,273,023			—		1,273,023
Publicly traded equity securities	86,482		—			—		86,482
Total cash and investments	$	5,803,427	$	5,522,215		$	70,086	$	11,395,728
Other items:
Strategic investments held at cost	$	—	$	—		$	351,855	$	351,855
Investment in joint venture	—		—			32,745		32,745
Convertible debt	—		(2,665,690		)	—		(2,665,690		)
Foreign exchange derivative assets	—		30,189			—		30,189
Foreign exchange derivative liabilities	—		(34,590		)	—		(34,590		)
Commodity derivative assets	—		(588		)	—		(588		)

Changes in Fair Value of Level 3 Financial Assets

The following table provides a summary of changes in fair value of our LenovoEMC joint venture for the three months ended March 31, 2013 and 2012 (table in thousands):

	For the Three Months Ended
	March 31, 2013		March 31, 2012
Balance, beginning of the period	$	32,745	$	—
Realized gain included in other income (expense)	481		—
Balance, end of period	$	33,226	$	—

The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three months ended March 31, 2013 and 2012 (table in thousands):

	For the Three Months Ended
	March 31, 2013			March 31, 2012
Balance, beginning of the period	$	70,180		$	74,687
Calls at par value	(580		)	(219		)
Other-than-temporary impairment loss	(889		)	—
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	(464		)	4,026
Balance, end of the period	$	68,247		$	78,494

Unrealized Losses on Investments by Investment Category and Length of Time in Continuous Unrealized Loss Position

Unrealized losses on investments at March 31, 2013 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in thousands):

	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	$	254,486	$	(1,235	)	$	9,295	$	(216	)	$	263,781	$	(1,451	)
U.S. corporate debt securities	273,100		(436		)	—		—			273,100		(436		)
High yield corporate debt securities	43,943		(673		)	164		(93		)	44,107		(766		)
Asset-backed securities	2,666		(4		)	6		—			2,672		(4		)
Municipal obligations	24,624		(33		)	9,587		(12		)	34,211		(45		)
Auction rate securities	—		—			68,247		(3,829		)	68,247		(3,829		)
Foreign debt securities	298,632		(720		)	—		—			298,632		(720		)
Publicly traded equity securities	1,315		(616		)	—		—			1,315		(616		)
Total	$	898,766	$	(3,717	)	$	87,299	$	(4,150	)	$	986,065	$	(7,867	)

Contractual Maturities of Investments

The contractual maturities of fixed income securities held at March 31, 2013 are as follows (table in thousands):

	March 31, 2013
	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,220,229	$	1,223,463
Due after 1 year through 5 years	4,423,210		4,450,632
Due after 5 years through 10 years	484,206		511,333
Due after 10 years	409,321		408,256
Total	$	6,536,966	$	6,593,684