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Interpreting Footnotes on Security Investments Cisco Systems Inc. reports the following information derived from its 2016 10-K report. (Note: Ciscos 2016 disclosures are consistent with

Interpreting Footnotes on Security Investments Cisco Systems Inc. reports the following information derived from its 2016 10-K report. (Note: Ciscos 2016 disclosures are consistent with the former accounting rules for marketable equity securities. See the Accounting Insight box on page 9-6 in the textbook.)

Accumulated
Common Stock Other Total Cisco's
Shares of and Additional Retained Comprehensive Shareholders' Noncontrolling
$ millions Common Stock Paid in Capital Earnings Income (Loss) Equity Interests Total Equity
Balance at July 25, 2015 5,085 $43,592 $16,045 $61 $59,698 $9 $59,707
Net income 11,026 11,026 11,026
Change in:
Unrealized gains and (losses) on investments, net 114 114 (10) 104
Derivative instruments (43) (43) (43)
Cumulative translation adjustment and other (502) (502) (502)
Other comprehensive income (loss) (431) (431) (10) (441)
Issuance of common stock 113 1,127 1,127 1,127
Repurchase of common stock (148) (1,280) (2,638) (3,918) (3,918)
Repurchase of common stock for tax withholdings on vesting of restricted stock units (21) (557) (557) (557)
Cash dividends declared (4,750) (4,750) (4,750)
Tax effects from employee stock incentive plans 30 30 30
Share-based compensation 1,458 1,458 1,458
Purchase acquisitions 146 146 146
Balance at July 30, 2016 $5,029 $44,516 $19,683 $(370) $63,829 $(1) $63,828

Summary of Available-for-Sale Investments The following table summarizes the Company's available-for-sale investments (in millions).

Gross Gross
Amortized Unrealized Unrealized
July 30, 2016 Cost Gains Losses Fair Value
Fixed income securities
U.S. government securities $26,826 $84 $(2) $26,908
U.S. government agency securities 2,809 8 - 2,817
Non-U.S. government and agency securities 1,096 4 - 1,100
Corporate debt securities 24,044 263 (15) 24,292
U.S. agency mortgage-backed securities 1,846 22 - 1,868
Total fixed income securities $56,621 381 (17) $56,985
Publicly traded equity securities 1,211 333 (40) 1,504
Total $57,832 $714 $(57)

$58,489

a.What is the amount of Ciscos investment portfolio on its balance sheet? Does that amount include any unrealized gains or losses? Explain.

b.What does the number $103 represent in the Accumulated Other Comprehensive Income column? Explain.

c.Under the new accounting rules that take effect in 2018, how would Cisco treat the $103? d.Compute comprehensive income for 2015. e.During 2015, did the currencies in the countries where Ciscos subsidiaries were headquartered

weaken or strengthen?

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