Available-for-sale investments are carried at fair value, inclusive of unrealized gains and losses, and net of discount accretion and premium amortization computed using the level yield method. Net unrealized gains and losses are included in other comprehensive income (loss) net of applicable income taxes. Gains or losses on sales of available-for-sale investments are recognized using the first-in, first-out method and are included in other expense (income) or interest expense (income) depending upon the type of security.

Available-for-sale securities as of December 29, 2013 are summarized as follows (in thousands):



	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss		Net Unrealized Gain		Market Value
Short-Term Investments:
U.S. government and agency obligations	$	4,999	$	2	$	—	$	2	$	5,001
Total short-term investments	$	4,999	$	2	$	—	$	2	$	5,001

Equity securities	$	11,631	$	14,870	$	—	$	14,870	$	26,501

Available-for-sale securities as of June 30, 2013 are summarized as follows (in thousands):



	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss			Net Unrealized Gain		Market Value
Short-Term Investments:
Corporate debt	$	—	$	40	$	—		$	40	$	40
U.S. government and agency obligations	11,007		9		—			9		11,016
Total short-term investments	$	11,007	$	49	$	—		$	49	$	11,056

Equity securities	$	11,631	$	5,739	$	(5	)	$	5,734	$	17,365

The Company's investment policy is to manage its total cash and investments balances to preserve principal and maintain liquidity while achieving market returns on the investment portfolio.

The Company also holds as strategic investments the common stock of three publicly traded foreign companies. The common stock of the three companies is shown as “Equity securities” in the table above and is included in other assets on the consolidated balance sheets. The common shares of the publicly traded companies are traded on either the Tokyo Stock Exchange or the Taiwan Stock Exchange. The Company holds an option on one of the strategic investments to put the associated number of common shares back to the issuer at a fixed price in local currency (which is described as the “Put Option” in Note 1). The Put Option became effective September 1, 2009 and is reported at fair value. As of December 29, 2013, the fair value of the Put Option was $1.9 million, with changes in fair value recorded in other expense, net (See Note 3, “Derivative Financial Instruments”). The Company received no dividend income from these investments for each of the three months ended December 29, 2013 and December 23, 2012, and $0.1 million in dividend income for each of the six months ended December 29, 2013 and December 23, 2012.

The Company evaluates securities for other-than-temporary impairment on a quarterly basis. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which the market value has been less than cost, the financial condition and near-term prospects of the issuer of the securities, and the intent and ability of the Company to retain the security in order to allow for an anticipated recovery in fair value. If, based upon the analysis, it is determined that the impairment is other-than-temporary, the security is written down to fair value and a loss is recognized through earnings.

There were no other-than-temporary impairments recorded for the Company's investments during each of the three and six months ended December 29, 2013 and December 23, 2012.

Unrealized loss positions are measured and determined at each fiscal quarter end. There were no available-for-sale investments in a gross unrealized loss position as of December 29, 2013. The following table summarizes the fair value and gross unrealized losses related to available-for-sale investments, aggregated by type of investment and length of time that individual securities were held in a loss position as of June 30, 2013 (in thousands):



	Securities held in a loss position for less than 12 months at June 30, 2013					Securities held in a loss position for 12 months or more at June 30, 2013				Total in a loss position at June 30, 2013
	Market Value		Gross Unrealized Losses			Market Value		Gross Unrealized Losses		Market Value		Gross Unrealized Losses
Equity Securities	$	1,052	$	(5	)	$	—	$	—	$	1,052	$	(5	)
Total	$	1,052	$	(5	)	$	—	$	—	$	1,052	$	(5	)

The amortized cost and estimated fair value of investments at December 29, 2013, by contractual maturity of investment, are as follows (in thousands):



Contractual Maturity	Amortized Cost		Estimated Market Value
Due in 1 year or less	$	4,999	$	5,001
Total investments	$	4,999	$	5,001

The Company may decide to dispose of securities prior to the contractual maturity date indicated in the table above.

During the three and six months ended December 29, 2013, the Company sold a de minimis amount of available-for-sale securities, and the related total proceeds and gross realized gains and (losses) were also de minimis. Available-for-sale securities were sold for total proceeds of $52.1 million during the three and six months ended December 23, 2012, and gross realized gains and (losses) were de minimis. The cost of marketable securities sold was determined by the first-in, first-out method.

Fair Value of Investments

The following tables present the balances of investments measured at fair value on a recurring basis, by type of investment (in thousands):



	As of December 29, 2013
	Total		Level 1		Level 2		Level 3
U.S. government and agency obligations	$	5,001	$	5,001	$	—	$	—
Equity securities-strategic investments	26,501		26,501		—		—
Total securities at fair value	$	31,502	$	31,502	$	—	$	—



	As of June 30, 2013
	Total		Level 1		Level 2		Level 3
Corporate debt	$	40	$	—	$	40	$	—
U.S. government and agency obligations	11,016		6,004		5,012		—
Equity securities-strategic investments	17,365		17,365		—		—
Total securities at fair value	$	28,421	$	23,369	$	5,052	$	—