Dell 2010 Annual Report Download - page 75

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
the impairment is recognized. No impairment charges of goodwill and intangible assets were recorded for the fiscal year ended
January 28, 2011. See Note 8 of Notes to Consolidated Financial Statements for additional information about goodwill and intangible
assets.
NOTE 3 — INVESTMENTS
The following table summarizes, by major security type, the fair value and amortized cost of Dell's investments. All debt security
investments with remaining maturities in excess of one year and substantially all equity and other securities are recorded as long-term
investments in the Consolidated Statements of Financial Position.
January 28, 2011 January 29, 2010
Fair Unrealized Unrealized Fair Unrealized Unrealized
Value Cost Gain (Loss) Value Cost Gain (Loss)
(in millions)
Investments:
U.S. government and agencies $ 58 $ 58 $ - $ - $ 65 $ 65 $ - $ -
U.S. corporate 254 253 1 - 233 232 1 -
International corporate 140 140 - - 75 75 - -
Total short-term investments 452 451 1 - 373 372 1 -
U.S. government and agencies 21 20 1 - 1 1 - -
U.S. corporate 242 243 - (1) 350 349 2 (1)
International corporate 317 317 - - 316 316 1 (1)
State and municipal governments - - - - 2 2 - -
Equity and other securities 124 124 - - 112 112 - -
Total long-term investments 704 704 1 (1) 781 780 3 (2)
Total investments $ 1,156 $ 1,155 $ 2 $ (1) $ 1,154 $ 1,152 $ 4 $ (2)
Dell's investments in debt securities are classified as available-for-sale. Equity and other securities primarily relate to investments held in
Dell's Deferred Compensation Plan, which are classified as trading securities. Both of these classes of securities are reported at fair value
using the specific identification method. All other investments are initially recorded at cost and reduced for any impairment losses. The
fair value of Dell's portfolio is affected primarily by interest rate movements rather than credit and liquidity risks. Most of Dell's
investments in debt securities have contractual maturities of less than five years.
At January 28, 2011, Dell had 68 debt securities that were in a loss position with total unrealized losses of $1 million and a corresponding
fair value of $335 million. As of January 28, 2011, Dell evaluated debt securities classified as available-for-sale for
other-than-temporary-impairment and the existence of credit losses and concluded no such losses should be recognized for the fiscal year
ended January 28, 2011.
During Fiscal 2011, Fiscal 2010, and Fiscal 2009, gross realized gains recognized in interest and other, net were $7 million, $6 million,
and $14 million, respectively. Dell recognized gross realized losses of $1 million, $4 million, and $24 million, respectively, during the
same periods.
71