XML 24 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Financial Instruments
 3 Months Ended
Jun. 29, 2019
Investments, All Other Investments [Abstract]  
Financial Instruments
Financial Instruments

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

 
June 29, 2019
 
 
March 30, 2019
(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
$
585,075

 
$
—

 
$
—

 
$
585,075

 
 
$
428,150

 
$
—

 
$
—

 
$
428,150

Financial institution


 


 


 


 
 


 


 


 


securities
509,853

 
—

 
—

 
509,853

 
 
537,795

 
—

 
—

 
537,795

Non-financial institution


 


 


 


 
 


 


 


 


securities
311,954

 
35

 
(176
)
 
311,813

 
 
702,483

 
3

 
(562
)
 
701,924

U.S. government and

 

 

 

 
 

 

 

 

agency securities
267,414

 
49

 
(47
)
 
267,416

 
 
334,185

 
39

 
(139
)
 
334,085

Foreign government and

 

 

 

 
 

 

 

 

agency securities
399,407

 
—

 
—

 
399,407

 
 
214,455

 
—

 
—

 
214,455

Mortgage-backed securities
580,189

 
1,524

 
(5,166
)
 
576,547

 
 
684,596

 
809

 
(14,635
)
 
670,770

Asset-backed securities
50,358

 
26

 
(113
)
 
50,271

 
 
76,852

 
—

 
(483
)
 
76,369

Commercial mortgage-


 


 


 


 
 


 


 


 


backed securities
94,298

 
60

 
(593
)
 
93,765

 
 
118,115

 
42

 
(1,618
)
 
116,539

 
$
2,798,548

 
$
1,694

 
$
(6,095
)
 
$
2,794,147

 
 
$
3,096,631

 
$
893

 
$
(17,437
)
 
$
3,080,087



Financial institution securities include securities issued or managed by financial institutions in various forms, such as commercial paper and time deposits. Substantially all time deposits were issued by institutions outside the U.S. as of June 29, 2019 and March 30, 2019.

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 June 29, 2019 and March 30, 2019:

 
June 29, 2019
 
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
$
—

 
$
—

 
$
38,010

 
$
(176
)
 
$
38,010

 
$
(176
)
U.S. government and

 

 

 

 


 


    agency securities
—

 
—

 
13,633

 
(47
)
 
13,633

 
(47
)
Mortgage-backed securities
40,762

 
(148
)
 
411,450

 
(5,018
)
 
452,212

 
(5,166
)
Asset-backed securities
6,458

 
(3
)
 
35,955

 
(110
)
 
42,413

 
(113
)
Commercial mortgage-

 

 

 

 
 
 
 
backed securities
7,060

 
(16
)
 
68,478

 
(577
)
 
75,538

 
(593
)
 
$
54,280

 
$
(167
)
 
$
567,526

 
$
(5,928
)
 
$
621,806

 
$
(6,095
)

 
March 30, 2019
 
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
$
4,767

 
$
(4
)
 
$
51,044

 
$
(558
)
 
$
55,811

 
$
(562
)
U.S. government and

 

 

 

 

 

    agency securities
—

 
—

 
13,542

 
(139
)
 
13,542

 
(139
)
Mortgage-backed securities
34,595

 
(480
)
 
597,394

 
(14,155
)
 
631,989

 
(14,635
)
Asset-backed securities
—

 
—

 
76,103

 
(483
)
 
76,103


(483
)
Commercial mortgage-
 
 
 
 
 
 
 
 
 
 
 
    backed securities
1,354

 
(3
)
 
112,294

 
(1,615
)
 
113,648

 
(1,618
)
 
$
40,716

 
$
(487
)
 
$
850,377

 
$
(16,950
)
 
$
891,093

 
$
(17,437
)


As of June 29, 2019, the gross unrealized losses that had been outstanding for both less than twelve months and more than twelve months were primarily related to mortgage-backed securities, which was primarily 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 Company reviewed the investment portfolio and determined that the gross unrealized losses on these investments as of June 29, 2019 and March 30, 2019 were temporary in nature as evidenced by the fluctuations in the gross unrealized losses within the investment categories. The marketable debt securities (financial institution securities, non-financial institution securities, U.S. and foreign government and agency securities, asset-backed securities, mortgage-backed securities and commercial mortgage-backed securities) are highly rated by the credit rating agencies, there have been no defaults on any of these securities and the Company has received interest payments as they become due. Therefore, the Company believes that it will be able to collect both principal and interest amount due to the Company. Additionally, in the past several years a portion of the Company's investment in the mortgage-backed securities was 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 June 29, 2019 and March 30, 2019. 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 amortized cost and estimated fair value of marketable debt securities, by contractual maturity, are shown in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

 
June 29, 2019
(In thousands)
Amortized
Cost
 
Estimated
Fair Value
Due in one year or less
$
1,449,786

 
$
1,449,796

Due after one year through five years
112,270

 
111,905

Due after five years through ten years
120,976

 
120,656

Due after ten years
530,441

 
526,715


$
2,213,473

 
$
2,209,072



As of June 29, 2019, $759.3 million of marketable debt securities with contractual maturities of greater than one year were classified as short-term investments. Additionally, the above table does not include investments in money market funds and debt mutual funds because these investments do not have specific contractual maturities.

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

 
Three Months Ended
(In thousands)
June 29, 2019
 
June 30, 2018
Proceeds from sale of available-for-sale securities
$
156,094

 
$
895

Gross realized gains on sale of available-for-sale securities
$
604

 
$
96

Gross realized losses on sale of available-for-sale securities
(39
)
 
(47
)
Net realized gains on sale of available-for-sale securities
$
565

 
$
49

Amortization of premiums on available-for-sale securities
$
711

 
$
2,491



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

The Company records the change in the fair value of its investment in debt mutual funds as part of its interest and other income (expense), net. This change in fair value was a net increase of $1.4 million for the three months ended June 29, 2019 and resulted in a gain within interest and other income (expense) net for the period. During the three months ended June 29, 2019, the Company sold a debt mutual fund and recognized a loss of an immaterial amount.