Annual
Report
Notwithstanding our efforts to manage interest rate risks, there can be no assurance that we will be adequately
protected against risks associated with interest rate fluctuations. At any time, a sharp change in interest rates
could have a significant impact on the fair value of our investment portfolio. The following table presents the
hypothetical changes in the fair value in our short-term investment portfolio as of March 31, 2013, arising from
potential changes in interest rates. The modeling technique estimates the change in fair value from immediate
hypothetical parallel shifts in the yield curve of plus or minus 50 basis points ("BPS"), 100 BPS, and 150 BPS.
(In millions)
Valuation of Securities
Given an Interest Rate Decrease
of X Basis Points
Fair Value
as of
March 31,
2013
Valuation of Securities Given
an Interest Rate Increase of
X Basis Points
(150 BPS)
(100 BPS)
(50 BPS)
50 BPS
100 BPS
150 BPS
Corporate bonds . . . . . . . . . . . . . . . . . . . .
$182
$181
$179
$178
$177
$175
$174
U.S. Treasury securities . . . . . . . . . . . . . .
87
87
86
85
85
84
84
U.S. agency securities . . . . . . . . . . . . . . . .
78
77
76
76
75
74
74
Commercial paper . . . . . . . . . . . . . . . . . .
49
49
49
49
49
49
49
Total short-term investments . . . . . . . .
$396
$394
$390
$388
$386
$382
$381
59