cisco-annual-report-2021

The following tables present the breakdown of the available-for-sale debt investments with gross unrealized losses and the
duration that those losses had been unrealized at July 31, 2021 and July 25, 2020 (in millions):
July 31, 2021
UNREALIZED LOSSES
LESS THAN 12 MONTHS
Gross
Unrealized
Fair Value Losses
UNREALIZED LOSSES
12 MONTHS OR GREATER TOTAL
Gross
Gross
Unrealized
Unrealized
Fair Value Losses Fair Value Losses
U.S. government securities . . . . . . . . . . . . . . $ 468 $ — $ — $ — $ 468 $ —
U.S. government agency securities . . . . . . . . 26 — — — 26 —
Corporate debt securities . . . . . . . . . . . . . . . 1,086 (5) 6 — 1,092 (5)
U.S. agency mortgage-backed securities . . . 1,293 (10) 13 — 1,306 (10)
Commercial paper . . . . . . . . . . . . . . . . . . . . . 37 — — — 37 —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,910 $ (15) $ 19 $ — $ 2,929 $ (15)
July 25, 2020
UNREALIZED LOSSES
LESS THAN 12 MONTHS
Gross
Unrealized
Fair Value Losses
UNREALIZED LOSSES
12 MONTHS OR GREATER TOTAL
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
U.S. government agency securities . . . . . . . . . $ 33 $ — $ — $ — $ 33 $ —
Corporate debt securities . . . . . . . . . . . . . . . . . 1,060 (6) 3 — 1,063 (6)
U.S. agency mortgage-backed securities. . . . . 265 (1) — — 265 (1)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,358 $ (7) $ 3 $ — $ 1,361 $ (7)
The following table summarizes the maturities of our available-for-sale debt investments as of July 31, 2021 (in millions):
Amortized Cost
Fair Value
Within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,981 $ 4,976
After 1 year through 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,517 6,677
After 5 years through 10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 637 685
After 10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6
Mortgage-backed securities with no single maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,838 2,862
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,978 $ 15,206
Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain
obligations.
(b) Summary of Equity Investments
We recognized a net unrealized gain during fiscal 2021 on our marketable securities still held as of the reporting date of
$8 million. Our net adjustments to non-marketable equity securities measured using the measurement alternative still held was
a net gain of $39 million and a net loss of $13 million for fiscal 2021 and 2020, respectively. We held equity interests in certain
private equity funds of $0.9 billion and $0.7 billion as of July 31, 2021 and July 25, 2020, respectively, which are accounted for
under the NAV practical expedient.
In the ordinary course of business, we have investments in privately held companies and provide financing to certain customers.
These privately held companies and customers are evaluated for consolidation under the variable interest or voting interest
entity models. We evaluate on an ongoing basis our investments in these privately held companies and our customer financings,
and have determined that as of July 31, 2021, there were no significant variable interest or voting interest entities required to be
consolidated in our Consolidated Financial Statements.
As of July 31, 2021, the carrying value of our investments in privately held companies was $1.5 billion. Of the total carrying
value of our investments in privately held companies as of July 31, 2021, $0.9 billion of such investments are considered to be
in variable interest entities which are unconsolidated. We have total funding commitments of $0.2 billion related to privately
held investments, some of which may be based on the achievement of certain agreed-upon milestones, and some of which are
required to be funded on demand. The carrying value of these investments and the additional funding commitments collectively
represent our maximum exposure related to privately held investments.
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