Investments and Fair Value Measurements (Tables)
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3 Months Ended |
Mar. 29, 2015
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Schedule of Available-for-sale Securities |
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Cash and Cash Equivalents and Marketable Securities |
The Company’s total cash, cash equivalents and marketable securities was as follows: | | | | | | | | | | March 29, 2015 | | December 28, 2014 | | (In thousands) | Cash and cash equivalents | $ | 649,940 |
| | $ | 809,003 |
| Short-term marketable securities | 1,347,541 |
| | 1,455,509 |
| Long-term marketable securities | 2,396,950 |
| | 2,758,475 |
| Total cash, cash equivalents and marketable securities | $ | 4,394,431 |
| | $ | 5,022,987 |
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Financial assets and liabilities measured at fair value on a recurring basis |
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 29, 2015 | | December 28, 2014 | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Money market funds | $ | 432,433 |
| | $ | — |
| | $ | — |
| | $ | 432,433 |
| | $ | 533,133 |
| | $ | — |
| | $ | — |
| | $ | 533,133 |
| Fixed income securities | 6,815 |
| | 3,766,129 |
| | — |
| | 3,772,944 |
| | 25,162 |
| | 4,213,599 |
| | — |
| | 4,238,761 |
| Derivative assets | — |
| | 3,243 |
| | — |
| | 3,243 |
| | — |
| | 4,800 |
| | — |
| | 4,800 |
| Total financial assets | $ | 439,248 |
| | $ | 3,769,372 |
| | $ | — |
| | $ | 4,208,620 |
| | $ | 558,295 |
| | $ | 4,218,399 |
| | $ | — |
| | $ | 4,776,694 |
| | | | | | | | | | | | | | | | | Derivative liabilities | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 8,224 |
| | $ | — |
| | $ | 8,224 |
| Total financial liabilities | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 8,224 |
| | $ | — |
| | $ | 8,224 |
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Financial assets and liabilities measured at fair value on a recurring basis |
Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented on the Condensed Consolidated Balance Sheets as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 29, 2015 | | December 28, 2014 | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Cash equivalents(1) | $ | 432,433 |
| | $ | 28,453 |
| | $ | — |
| | $ | 460,886 |
| | $ | 533,133 |
| | $ | 24,777 |
| | $ | — |
| | $ | 557,910 |
| Short-term marketable securities | 1,458 |
| | 1,346,083 |
| | — |
| | 1,347,541 |
| | 3,327 |
| | 1,452,182 |
| | — |
| | 1,455,509 |
| Long-term marketable securities | 5,357 |
| | 2,391,593 |
| | — |
| | 2,396,950 |
| | 21,835 |
| | 2,736,640 |
| | — |
| | 2,758,475 |
| Other current assets | — |
| | 3,243 |
| | — |
| | 3,243 |
| | — |
| | 4,800 |
| | — |
| | 4,800 |
| Total financial assets | $ | 439,248 |
| | $ | 3,769,372 |
| | $ | — |
| | $ | 4,208,620 |
| | $ | 558,295 |
| | $ | 4,218,399 |
| | $ | — |
| | $ | 4,776,694 |
| Other current accrued liabilities | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 8,224 |
| | $ | — |
| | $ | 8,224 |
| Total financial liabilities | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 1,448 |
| | $ | — |
| | $ | 8,224 |
| | $ | — |
| | $ | 8,224 |
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| | (1) | Cash equivalents exclude cash holdings of $189.1 million and $251.1 million included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets as of March 29, 2015 and December 28, 2014, respectively. |
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Available for Sale Investments |
Available-for-sale investments were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 29, 2015 | | December 28, 2014 | | Amortized Cost | | Gross Unrealized Gain | | Gross Unrealized Loss | | Fair Value | | Amortized Cost | | Gross Unrealized Gain | | Gross Unrealized Loss | | Fair Value | | (In thousands) | U.S. Treasury securities | $ | 6,797 |
| | $ | 19 |
| | $ | (1 | ) | | $ | 6,815 |
| | $ | 25,194 |
| | $ | — |
| | $ | (32 | ) | | $ | 25,162 |
| U.S. government-sponsored agency securities | 22,414 |
| | 21 |
| | (11 | ) | | 22,424 |
| | 7,511 |
| | — |
| | (18 | ) | | 7,493 |
| International government securities | 58,032 |
| | 80 |
| | (21 | ) | | 58,091 |
| | 82,033 |
| | — |
| | (314 | ) | | 81,719 |
| Corporate notes and bonds | 635,937 |
| | 1,340 |
| | (411 | ) | | 636,866 |
| | 774,869 |
| | 325 |
| | (2,052 | ) | | 773,142 |
| Asset-backed securities | 138,814 |
| | 84 |
| | (86 | ) | | 138,812 |
| | 171,221 |
| | 42 |
| | (353 | ) | | 170,910 |
| Mortgage-backed securities | 31,253 |
| | 63 |
| | (108 | ) | | 31,208 |
| | 48,378 |
| | 6 |
| | (173 | ) | | 48,211 |
| Municipal notes and bonds | 2,871,130 |
| | 8,677 |
| | (1,079 | ) | | 2,878,728 |
| | 3,124,189 |
| | 9,733 |
| | (1,798 | ) | | 3,132,124 |
| Total available-for-sale investments | $ | 3,764,377 |
| | $ | 10,284 |
| | $ | (1,717 | ) | | $ | 3,772,944 |
| | $ | 4,233,395 |
| | $ | 10,106 |
| | $ | (4,740 | ) | | $ | 4,238,761 |
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Available-for-sale securities that were in an unrealized loss position |
The fair value and gross unrealized losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument, and the length of time that individual securities have been in a continuous unrealized loss position as of March 29, 2015, are summarized in the following table. Available-for-sale securities that were in an unrealized gain position have been excluded from the table. | | | | | | | | | | | | | | | | | | Less than 12 months | | Greater than 12 months | | Fair Value | | Gross Unrealized Loss | | Fair Value | | Gross Unrealized Loss | | (In thousands) | U.S. Treasury securities | $ | 1,570 |
| | $ | (1 | ) | | $ | — |
| | $ | — |
| U.S. government-sponsored agency securities | 4,486 |
| | (11 | ) | | — |
| | — |
| International government securities | 22,853 |
| | (21 | ) | | — |
| | — |
| Corporate notes and bonds | 204,004 |
| | (404 | ) | | 4,413 |
| | (7 | ) | Asset-backed securities | 74,869 |
| | (84 | ) | | 1,248 |
| | (2 | ) | Mortgage-backed securities | 13,923 |
| | (88 | ) | | 4,942 |
| | (20 | ) | Municipal notes and bonds | 452,495 |
| | (1,014 | ) | | 15,042 |
| | (65 | ) | Total | $ | 774,200 |
| | $ | (1,623 | ) | | $ | 25,645 |
| | $ | (94 | ) |
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Gross realized gains and (losses) on sales of available-for-sale securities |
The following table shows the realized gains and (losses) on sales of available-for-sale securities: | | | | | | | | | | Three months ended | | March 29, 2015 | | March 30, 2014 | | (In thousands) | Realized gains | $ | 2,320 |
| | $ | 1,013 |
| Realized losses | (323 | ) | | (443 | ) | Net realized gains | $ | 1,997 |
| | $ | 570 |
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Fixed income securities by contractual maturity |
Fixed income securities by contractual maturity as of March 29, 2015 are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to prepay obligations or the Company has the option to demand payment. | | | | | | | | | | Amortized Cost | | Fair Value | | (In thousands) | Due in one year or less | $ | 711,897 |
| | $ | 713,355 |
| After one year through five years | 2,262,309 |
| | 2,268,567 |
| After five years through ten years | 120,900 |
| | 120,993 |
| After ten years | 669,271 |
| | 670,029 |
| Total | $ | 3,764,377 |
| | $ | 3,772,944 |
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Related costs and the fair values based on quoted market prices |
For those financial instruments where the carrying amounts differ from fair value, the following table represents the related carrying values and fair values, which are based on quoted market prices. The 1.5% Convertible Senior Notes due 2017 and the 0.5% Convertible Senior Notes due 2020 were both categorized as Level 1, based on the frequency of trading of each respective convertible note directly prior to the end of the first quarter of 2015. As of December 28, 2014, the 1.5% Convertible Senior Notes due 2017 was categorized as Level 1 and the 0.5% Convertible Senior Notes due 2020 was classified as Level 2, both based on the frequency of trading of each respective convertible note directly prior to the end of 2014. See Note 7, “Financing Arrangements,” regarding details of each convertible note presented. | | | | | | | | | | | | | | | | | | March 29, 2015 | | December 28, 2014 | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | (In thousands) | 1.5% Convertible Senior Notes due 2017 | $ | 880,653 |
| | $ | 1,363,792 |
| | $ | 869,645 |
| | $ | 1,948,721 |
| 0.5% Convertible Senior Notes due 2020 | 1,211,097 |
| | 1,537,500 |
| | 1,199,696 |
| | 1,789,500 |
| Total | $ | 2,091,750 |
| | $ | 2,901,292 |
| | $ | 2,069,341 |
| | $ | 3,738,221 |
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