Financial Instruments

6 Months Ended

Oct. 01, 2011

Note 5. Financial Instruments

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


	October 1, 2011									April 2, 2011
			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	$	222,364	$	0	$	0		$	222,364	$	275,596	$	0	$	0		$	275,596
Bank certificates of deposit		147,784		0		0			147,784		89,984		0		0			89,984
Commercial paper		654,132		1		0			654,133		710,210		2		(1	)		710,211
Corporate bonds		193,538		1,667		(570	)		194,635		25,501		69		(4	)		25,566
Auction rate securities		32,900		0		(3,852	)		29,048		38,250		0		(3,300	)		34,950
Municipal bonds		25,138		1,047		(15	)		26,170		16,818		192		(52	)		16,958
U.S. government and agency securities		146,037		358		(45	)		146,350		206,052		38		(207	)		205,883
Foreign government and agency securities		599,818		27		(8	)		599,837		546,407		7		(16	)		546,398
Floating rate notes		0		0		0			0		91,927		204		(1	)		92,130
Mortgage-backed securities		758,995		13,429		(1,522	)		770,902		598,046		8,984		(1,363	)		605,667

	$	2,780,706	$	16,529	$	(6,012	)	$	2,791,223	$	2,598,791	$	9,496	$	(4,944	)	$	2,603,343

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 October 1, 2011 and April 2, 2011:


	October 1, 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
Corporate bonds	$	29,634	$	(570	)	$	0	$	0		$	29,634	$	(570	)
Auction rate securities		0		0			29,048		(3,852	)		29,048		(3,852	)
Municipal bonds		4,607		(9	)		486		(6	)		5,093		(15	)
U.S. government and agency securities		93,586		(45	)		0		0			93,586		(45	)
Foreign government and agency securities		24,974		(8	)		0		0			24,974		(8	)
Mortgage-backed securities		171,611		(1,488	)		4,051		(34	)		175,662		(1,522	)

	$	324,412	$	(2,120	)	$	33,585	$	(3,892	)	$	357,997	$	(6,012	)


	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
Commercial paper	$	44,982	$	(1	)	$	0	$	0		$	44,982	$	(1	)
Corporate bonds		6,129		(4	)		0		0			6,129		(4	)
Auction rate securities		0		0			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	)		0		0			108,464		(207	)
Foreign government and agency securities		67,061		(16	)		0		0			67,061		(16	)
Floating rate notes		25,020		(1	)		0		0			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	)

The Company reviewed the investment portfolio and determined that the gross unrealized losses on these investments as of October 1, 2011 and April 2, 2011 were temporary in nature as evidenced by the fluctuations in the gross unrealized losses within the investment categories. The aggregate of individual unrealized losses that had been outstanding for 12 months or more was not significant as of October 1, 2011 and April 2, 2011, and was primarily related to failed auction rate securities due to adverse conditions in the global credit markets during the past three years. 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 and 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.


	October 1, 2011
	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due in one year or less	$	1,520,356	$	1,520,367
Due after one year through five years		242,217		244,044
Due after five years through ten years		254,356		258,891
Due after ten years		541,413		545,557

	$	2,558,342	$	2,568,859

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


	Three Months Ended						Six Months Ended
	October 1,			October 2,			October 1,			October 2,
(In thousands)	2011			2010			2011			2010
Proceeds from sale of available-for-sale securities	$	77,608		$	132,098		$	107,985		$	157,500


Gross realized gains on sale of available-for-sale securities	$	758		$	3,785		$	1,097		$	4,356
Gross realized losses on sale of available-for-sale securities		(21	)		(135	)		(26	)		(158	)

Net realized gains on sale of available-for-sale securities	$	737		$	3,650		$	1,071		$	4,198

Amortization of premiums on available-for-sale securities	$	3,262		$	1,561		$	5,575		$	3,102

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