Cash Equivalents and Investments

9 Months Ended

Oct. 02, 2011

Cash Equivalents and Investments [Abstract]

Cash Equivalents and Investments

Note 7 — Cash Equivalents and Investments

The following tables summarize the Company’s cash equivalents and investments measured at fair value:

	Fair Value Measurements as of October 2, 2011
	Level 1			Level 2			Level 3		Total
	(In thousands)
Cash equivalents:
Money-market funds	$	632,707	(a)	$	—		$	—	$	632,707
U.S. government and agency securities		—			785	(b)		—		785
Total cash equivalents	$	632,707		$	785		$	—	$	633,492
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities	$	—		$	108,970	(b)	$	—	$	108,970
U.S. government and agency securities		4,830	(a)		26,187	(b)		—		31,017
Corporate debt securities		—			13,732	(b)		—		13,732
Total short-term investments	$	4,830		$	148,889		$	—	$	153,719
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,382	(c)	$	—		$	—	$	1,382

	Fair Value Measurements as of December 31, 2010
	Level 1			Level 2			Level 3		Total
	(In thousands)
Cash equivalents:
Money-market funds	$	378,382	(a)	$	—		$	—	$	378,382
U.S. government and agency securities		2,000	(a)		—			—		2,000
Total cash equivalents	$	380,382		$	—		$	—	$	380,382
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities	$	—		$	116,552	(b)	$	—	$	116,552
U.S. government and agency securities		1,496	(a)		24,502	(b)		—		25,998
Corporate debt securities		—			12,330	(b)		—		12,330
Total short-term investments	$	1,496		$	153,384		$	—	$	154,880
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,681	(c)	$	—		$	—	$	1,681

(a) The fair value of money-market funds is determined using unadjusted prices in active markets. The fair value of these U.S. government and agency securities is determined using quoted prices in active markets.

(b) These investments are traded less frequently than Level 1 securities and are valued using inputs that include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the asset, such as interest rates, yield curves, prepayment speeds, collateral performance, broker/dealer quotes and indices that are observable at commonly quoted intervals.

(c) The fair value of marketable equity securities is determined using quoted market prices in active markets. These amounts are included within other assets in the condensed consolidated balance sheets.

Investments in Non-Marketable Securities

The Company does not estimate the fair value of non-marketable securities unless there are identified events or changes in circumstances that may have a significant adverse effect on the investment. There were no non-marketable securities fair-valued during the three and nine months ended October 2, 2011. The following table summarizes the Company’s non-marketable securities measured and recorded at fair value on a non-recurring basis during the nine months ended October 3, 2010:

	Carrying Value as of October 3, 2010			Fair Value  Measurements During the Nine Months Ended October 3, 2010						Losses for the Three Months Ended		Losses for the Nine Months Ended
				Level 1		Level 2		Level 3		October 3, 2010		October 3, 2010
	(In thousands)
Non-marketable securities	$	—	*	$	—	$	—	$	1,900	$	—	$	11,600

* The carrying value was zero as the related investment was sold during the three months ended October 3, 2010.

As of October 2, 2011 and December 31, 2010, the aggregate carrying value of the Company’s non-marketable securities was $43.9 million and $39.9 million, respectively. The Company recognized a pre-tax gain of $4.8 million associated with the sale of certain non-marketable securities during the three and nine months ended October 3, 2010. There were no sales of non-marketable securities during the three or nine months ended October 2, 2011.

Investments in Available-for-Sale Securities

The following tables summarize the Company’s available-for-sale securities:

	October 2, 2011
	Amortized Cost		Gross  Unrealized Gain		Gross  Unrealized Loss*			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	100,627	$	8,560	$	(217	)	$	108,970
U.S. government and agency securities		30,181		836		—			31,017
Corporate debt securities		13,617		161		(46	)		13,732
Total short-term debt securities	$	144,425	$	9,557	$	(263	)	$	153,719
Long-term marketable equity securities	$	852	$	687	$	(157	)	$	1,382

* As of October 2, 2011, there were 51 investments in an unrealized loss position.

	December 31, 2010
	Amortized Cost		Gross  Unrealized Gain		Gross  Unrealized Loss			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	107,891	$	9,012	$	(351	)	$	116,552
U.S. government and agency securities		25,313		812		(127	)		25,998
Corporate debt securities		12,226		176		(72	)		12,330
Total short-term debt securities	$	145,430	$	10,000	$	(550	)	$	154,880
Long-term marketable equity securities	$	852	$	868	$	(39	)	$	1,681

The following tables summarize the gross unrealized losses and fair values of the Company’s short-term investments that have been in a continuous unrealized loss position for less than and greater than 12 months, aggregated by investment category:

	October 2, 2011
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	7,654	$	(170	)	$	575	$	(47	)
U.S. government and agency securities		1,037		—			—		—
Corporate debt securities		4,614		(46	)		—		—
Total	$	13,305	$	(216	)	$	575	$	(47	)
	December 31, 2010
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	11,807	$	(179	)	$	2,469	$	(172	)
U.S. government and agency securities		13,969		(127	)		—		—
Corporate debt securities		6,527		(72	)		—		—
Total	$	32,303	$	(378	)	$	2,469	$	(172	)

There were no impairment charges for available-for-sale debt or equity securities for the three or nine months ended October 2, 2011 and October 3, 2010. There were no material other than temporary impairment losses recorded in other comprehensive income for the three or nine months ended October 2, 2011 and October 3, 2010. Net realized gain or loss on sales of available-for-sale debt and equity securities for the three and nine months ended October 2, 2011 and October 3, 2010 was not significant.

Contractual maturities of available-for-sale debt securities as of October 2, 2011 were as follows:

	Available-For-Sale Debt Securities
	(In thousands)
Due within one year	$	10,211
Due in 1-5 years		40,572
Due in 5-10 years		10,826
Due after 10 years		92,110
Total	$	153,719

The maturities of asset-backed and mortgage-backed securities were allocated based on contractual principal maturities assuming no prepayments.