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Investments and Fair Value Measurements (Tables)

12 Months Ended

Jan. 03, 2016

Schedule of Available-for-sale Securities

Cash and Cash Equivalents and Marketable Securities

The Company’s total cash, cash equivalents and marketable securities was as follows:



	January 3, 2016		December 28, 2014
	(In thousands)
Cash and cash equivalents	$	1,478,948	$	809,003
Short-term marketable securities	2,527,245		1,455,509
Long-term marketable securities	117,142		2,758,475
Total cash, cash equivalents and marketable securities	$	4,123,335	$	5,022,987

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:



	January 3, 2016								December 28, 2014
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(In thousands)
Money market funds	$	1,180,614	$	—	$	—	$	1,180,614	$	533,133	$	—	$	—	$	533,133
Fixed income securities	122,899		2,609,123		—		2,732,022		25,162		4,213,599		—		4,238,761
Derivative assets	—		3,376		—		3,376		—		4,800		—		4,800
Total financial assets	$	1,303,513	$	2,612,499	$	—	$	3,916,012	$	558,295	$	4,218,399	$	—	$	4,776,694

Derivative liabilities	$	—	$	1,747	$	—	$	1,747	$	—	$	8,224	$	—	$	8,224
Total financial liabilities	$	—	$	1,747	$	—	$	1,747	$	—	$	8,224	$	—	$	8,224

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 Consolidated Balance Sheets as follows:



	January 3, 2016								December 28, 2014
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(In thousands)
Cash equivalents⁽¹⁾	$	1,180,614	$	87,635	$	—	$	1,268,249	$	533,133	$	24,777	$	—	$	557,910
Short-term marketable securities	122,899		2,404,346		—		2,527,245		3,327		1,452,182		—		1,455,509
Long-term marketable securities	—		117,142		—		117,142		21,835		2,736,640		—		2,758,475
Other current assets	—		3,376		—		3,376		—		4,800		—		4,800
Total financial assets	$	1,303,513	$	2,612,499	$	—	$	3,916,012	$	558,295	$	4,218,399	$	—	$	4,776,694

Other current accrued liabilities	$	—	$	1,747	$	—	$	1,747	$	—	$	8,224	$	—	$	8,224
Total financial liabilities	$	—	$	1,747	$	—	$	1,747	$	—	$	8,224	$	—	$	8,224


⁽¹⁾	Cash equivalents exclude cash holdings of $210.7 million and $251.1 million included in Cash and cash equivalents on the Consolidated Balance Sheets as of January 3, 2016 and December 28, 2014, respectively.

Available for Sale Investments

Available-for-sale investments were as follows:



	January 3, 2016									December 28, 2014
	Amortized Cost⁽¹⁾		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Amortized Cost⁽¹⁾		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	(In thousands)
U.S. Treasury securities	$	122,891	$	11	$	(3	)	$	122,899	$	25,194	$	—	$	(32	)	$	25,162
U.S. government-sponsored agency securities	37,447		14		(74		)	37,387		7,511		—		(18		)	7,493
International government securities	47,463		—		(16		)	47,447		82,033		—		(314		)	81,719
Corporate notes and bonds	471,421		52		(559		)	470,914		774,869		325		(2,052		)	773,142
Asset-backed securities	133,518		3		(75		)	133,446		171,221		42		(353		)	170,910
Mortgage-backed securities	12,661		—		(4		)	12,657		48,378		6		(173		)	48,211
Municipal notes and bonds	1,905,299		1,991		(18		)	1,907,272		3,124,189		9,733		(1,798		)	3,132,124
Total available-for-sale investments	$	2,730,700	$	2,071	$	(749	)	$	2,732,022	$	4,233,395	$	10,106	$	(4,740	)	$	4,238,761


⁽¹⁾	Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization and other-than temporary impairment.

Available-for-sale securities that were in an unrealized loss position

The fair value and gross unrealized losses on the available-for-sale securities, net of the impact of other-than-temporary impairment losses, 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 January 3, 2016, 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	$	75,635	$	(3	)	$	—	$	—
U.S. government-sponsored agency securities	11,914		(74		)	—		—
International government securities	47,447		(16		)	—		—
Corporate notes and bonds	399,680		(546		)	10,938		(13		)
Asset-backed securities	114,932		(68		)	4,726		(7		)
Mortgage-backed securities	10,726		(1		)	1,930		(3		)
Municipal notes and bonds	534,651		(17		)	10,579		(1		)
Total	$	1,194,985	$	(725	)	$	28,173	$	(24	)

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:



	Years ended
	January 3, 2016			December 28, 2014			December 29, 2013
	(In thousands)
Realized gains	$	6,807		$	8,918		$	4,724
Realized losses	(3,157		)	(1,375		)	(2,349		)
Net realized gains	$	3,650		$	7,543		$	2,375

Fixed income securities by contractual maturity

Fixed income securities by contractual maturity as of January 3, 2016 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	$	1,321,975	$	1,323,097
After one year through five years	902,289		902,452
After five years through ten years	113,542		113,516
After ten years	392,894		392,957
Total	$	2,730,700	$	2,732,022

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. As of January 3, 2016, 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 fourth 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.



	January 3, 2016				December 28, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
1.5% Convertible Senior Notes due 2017	$	913,178	$	1,573,285	$	864,718	$	1,948,721
0.5% Convertible Senior Notes due 2020	1,237,776		1,563,750		1,188,491		1,789,500
Total	$	2,150,954	$	3,137,035	$	2,053,209	$	3,738,221

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details