Financial Instruments

The following is a summary of cash equivalents and available-for-sale securities as of the end of the periods presented:



	July 2, 2016									April 2, 2016
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	275,694	$	—	$	—		$	275,694	$	232,698	$	—	$	—		$	232,698
Financial institution
securities	508,544		—		—			508,544		284,853		—		—			284,853
Non-financial institution
securities	584,819		1,819		(33		)	586,605		564,480		862		(230		)	565,112
Auction rate securities	10,500		—		(432		)	10,068		10,500		—		(523		)	9,977
Municipal bonds	55,964		1,053		(80		)	56,937		68,938		877		(133		)	69,682
U.S. government and
agency securities	97,441		55		(98		)	97,398		192,291		73		(71		)	192,293
Foreign government and
agency securities	272,711		—		(9		)	272,702		313,168		—		—			313,168
Mortgage-backed securities	1,211,457		16,330		(4,678		)	1,223,109		1,200,071		12,848		(5,380		)	1,207,539
Asset-backed securities	213,753		1,508		(349		)	214,912		216,068		1,151		(605		)	216,614
Debt mutual funds	101,350		—		(10,297		)	91,053		101,350		—		(9,449		)	91,901
Bank loans	98,681		145		(508		)	98,318		102,092		25		(102		)	102,015
Commercial mortgage-
backed securities	212,184		1,075		(1,606		)	211,653		207,847		432		(1,809		)	206,470
	$	3,643,098	$	21,985	$	(18,090	)	$	3,646,993	$	3,494,356	$	16,268	$	(18,302	)	$	3,492,322

The following tables show the fair values and gross unrealized losses of the Company’s investments, aggregated by investment category, for individual securities that have been in a continuous unrealized loss position for the length of time specified, as of July 2, 2016 and April 2, 2016:



	July 2, 2016
	Less Than 12 Months					12 Months or Greater					Total
(In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Non-financial institution securities	$	9,237	$	(32	)	$	1,218	$	(1	)	$	10,455	$	(33	)
Auction rate securities	—		—			10,068		(432		)	10,068		(432		)
Municipal bonds	1,550		(9		)	2,962		(71		)	4,512		(80		)
U.S. government and
agency securities	32,103		(98		)	—		—			32,103		(98		)
Foreign government and
agency securities	19,966		(9		)	—		—			19,966		(9		)
Mortgage-backed securities	224,966		(2,957		)	105,378		(1,721		)	330,344		(4,678		)
Asset-backed securities	44,459		(217		)	9,715		(132		)	54,174		(349		)
Debt mutual fund	—		—			91,053		(10,297		)	91,053		(10,297		)
Bank loans	50,001		(412		)	4,865		(96		)	54,866		(508		)
Commercial mortgage-
backed securities	90,252		(468		)	10,435		(1,138		)	100,687		(1,606		)
	$	472,534	$	(4,202	)	$	235,694	$	(13,888	)	$	708,228	$	(18,090	)



	April 2, 2016
	Less Than 12 Months					12 Months or Greater					Total
(In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Non-financial institution securities	$	52,756	$	(230	)	$	—	$	—		$	52,756	$	(230	)
Auction rate securities	—		—			9,977		(523		)	9,977		(523		)
Municipal bonds	10,138		(44		)	3,867		(89		)	14,005		(133		)
U.S. government and
agency securities	84,024		(71		)	—		—			84,024		(71		)
Mortgage-backed securities	346,560		(3,916		)	114,285		(1,464		)	460,845		(5,380		)
Asset-backed securities	81,038		(502		)	20,793		(103		)	101,831		(605		)
Debt mutual funds	—		—			91,901		(9,449		)	91,901		(9,449		)
Bank loans	34,358		(31		)	42,832		(71		)	77,190		(102		)
Commercial mortgage-
backed securities	141,761		(878		)	2,150		(931		)	143,911		(1,809		)
	$	750,635	$	(5,672	)	$	285,805	$	(12,630	)	$	1,036,440	$	(18,302	)

As of July 2, 2016, the gross unrealized losses that had been outstanding for less than twelve months were primarily related to mortgage-backed securities due to the general rising of the interest-rate environment, although the percentage of such losses to the total estimated fair value of the mortgage-backed securities was relatively insignificant. The gross unrealized losses that had been outstanding for more than twelve months were primarily related to debt mutual funds and mortgage-backed securities, which were primarily due to the general rising of the interest-rate environment and foreign currency movement.

The Company reviewed the investment portfolio and determined that the gross unrealized losses on these investments as of July 2, 2016 and April 2, 2016 were temporary in nature as evidenced by the fluctuations in the gross unrealized losses within the investment categories. These investments are highly rated by the credit rating agencies, there have been no defaults on any of these securities and we have received interest payments as they become due. Additionally, in the past several years a portion of the Company's investment in the mortgage-backed securities were redeemed or prepaid by the debtors at par. Furthermore, the aggregate of individual unrealized losses that had been outstanding for twelve months or more was not significant as of July 2, 2016 and April 2, 2016. The Company neither intends to sell these investments nor concludes that it is more-likely-than-not that it will have to sell them until recovery of their carrying values. The Company also believes that it will be able to collect both principal and interest amounts due to the Company at maturity, given the high credit quality of these investments and any related underlying collateral.

The amortized cost and estimated fair value of marketable debt securities (financial institution securities, non-financial institution securities, auction rate securities, municipal bonds, U.S. and foreign government and agency securities, asset-backed securities, bank loans, mortgage-backed securities and commercial mortgage-backed securities), by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.



	July 2, 2016
(In thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,288,507	$	1,288,548
Due after one year through five years	488,890		489,855
Due after five years through ten years	244,043		245,600
Due after ten years	1,244,614		1,256,243
	$	3,266,054	$	3,280,246

As of July 2, 2016, $1.87 billion of marketable debt securities with contractual maturities of greater than one year were classified as short-term investments. Additionally, the above table did not include investments in money market and mutual funds because these funds do not have specific contractual maturities.

Certain information related to available-for-sale securities is as follows:



	Three Months Ended
(In thousands)	July 2, 2016			June 27, 2015
Proceeds from sale of available-for-sale securities	$	99,474		$	66,041
Gross realized gains on sale of available-for-sale securities	$	721		$	359
Gross realized losses on sale of available-for-sale securities	(512		)	(129		)
Net realized gains on sale of available-for-sale securities	$	209		$	230
Amortization of premiums on available-for-sale securities	$	6,762		$	6,468

The cost of securities matured or sold is based on the specific identification method.