Financial Instruments

12 Months Ended

Apr. 02, 2011

Note 4. Financial Instruments

The following is a summary of available-for-sale securities:


	April 2, 2011									April 3, 2010
			Gross		Gross			Estimated				Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
Money market funds	$	275,596	$	—	$	—		$	275,596	$	138,738	$	—	$	—		$	138,738
Bank certificates of deposit		89,984		—		—			89,984		59,996		—		—			59,996
Commercial paper		710,210		2		(1	)		710,211		437,790		—		—			437,790
Corporate bonds		25,501		69		(4	)		25,566		523		15		—			538
Auction rate securities		38,250		—		(3,300	)		34,950		69,200		—		(7,556	)		61,644
Municipal bonds		16,818		192		(52	)		16,958		9,688		75		(60	)		9,703
U.S. government and agency securities		206,052		38		(207	)		205,883		121,991		5		(40	)		121,956
Foreign government and agency securities		546,407		7		(16	)		546,398		488,845		—		—			488,845
Floating rate notes		91,927		204		(1	)		92,130		112,852		142		(564	)		112,430
Mortgage-backed securities		598,046		8,984		(1,363	)		605,667		435,375		8,643		(1,819	)		442,199

	$	2,598,791	$	9,496	$	(4,944	)	$	2,603,343	$	1,874,998	$	8,880	$	(10,039	)	$	1,873,839

Included in:
Cash and cash equivalents								$	1,132,837								$	936,489
Short-term investments									704,054									355,148
Long-term investments									766,452									582,202

								$	2,603,343								$	1,873,839

The following table shows 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 April 2, 2011 and April 3, 2010:


	April 2, 2011
	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
Commerical paper	$	44,982	$	(1	)	$	—	$	—		$	44,982	$	(1	)
Corporate bonds		6,129		(4	)		—		—			6,129		(4	)
Auction rate securities		—		—			34,950		(3,300	)		34,950		(3,300	)
Municipal bonds		4,992		(42	)		936		(10	)		5,928		(52	)
U.S. government and agency securities		108,464		(207	)		—		—			108,464		(207	)
Foreign government and agency securities		67,061		(16	)		—		—			67,061		(16	)
Floating rate notes		25,020		(1	)		—		—			25,020		(1	)
Mortgage-backed securities		178,844		(1,356	)		1,094		(7	)		179,938		(1,363	)

	$	435,492	$	(1,627	)	$	36,980	$	(3,317	)	$	472,472	$	(4,944	)


	April 3, 2010
	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
Auction rate securities	$	—	$	—		$	61,644	$	(7,556	)	$	61,644	$	(7,556	)
Municipal bonds		623		(1	)		1,727		(59	)		2,350		(60	)
U.S. government and agency securities		109,451		(40	)		—		—			109,451		(40	)
Floating rate notes		—		—			67,145		(564	)		67,145		(564	)
Mortgage-backed securities		191,255		(1,819	)		—		—			191,255		(1,819	)

	$	301,329	$	(1,860	)	$	130,516	$	(8,179	)	$	431,845	$	(10,039	)

The gross unrealized losses on these investments were primarily related to failed auction rate securities, which was due to adverse conditions in the global credit markets during the past three years. The Company reviewed the investment portfolio and determined that the gross unrealized losses on these investments as of April 2, 2011 and April 3, 2010 were temporary in nature, as evidenced by the reduction in the total gross unrealized losses in recent periods. The aggregate of individual unrealized losses that had been outstanding for 12 months or more was not significant as of April 2, 2011 and April 3, 2010. 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 (bank certificates of deposit, commercial paper, corporate bonds, auction rate securities, municipal bonds, U.S. and foreign government and agency securities, floating rate notes and mortgage-backed securities) as of April 2, 2011, 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.


	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due in one year or less	$	1,561,254	$	1,561,294
Due after one year through five years		117,792		117,950
Due after five years through ten years		199,657		202,353
Due after ten years		444,492		446,150

	$	2,323,195	$	2,327,747

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


(In thousands)	2011			2010			2009
Gross realized gains on sale of available-for-sale securities	$	5,169		$	2,947		$	4,544
Gross realized losses on sale of available-for-sale securities		(1,348	)		(2,596	)		(1,838	)

Net realized gains on sale of available-for-sale securities	$	3,821		$	351		$	2,706

Amortization of premiums (discounts) on available-for-sale securities	$	7,650		$	(4,797	)	$	(7,197	)

- Definition

This item represents the entire disclosure related to Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

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