| Financial Instruments |
Note 5. Financial Instruments
The following is a summary of available-for-sale securities as of the end of the periods presented:
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September 30, |
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September 30, |
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September 30, |
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September 30, |
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September 30, |
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September 30, |
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September 30, |
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September 30, |
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December 31, 2011 |
|
|
April 2, 2011 |
|
| (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
|
|
$ |
324,574 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
324,574 |
|
|
$ |
275,596 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
275,596 |
|
|
Bank certificates of deposit
|
|
|
139,976 |
|
|
|
0 |
|
|
|
0 |
|
|
|
139,976 |
|
|
|
89,984 |
|
|
|
0 |
|
|
|
0 |
|
|
|
89,984 |
|
|
Commercial paper
|
|
|
499,876 |
|
|
|
0 |
|
|
|
(2 |
) |
|
|
499,874 |
|
|
|
710,210 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
710,211 |
|
|
Corporate bonds
|
|
|
170,866 |
|
|
|
2,155 |
|
|
|
(390 |
) |
|
|
172,631 |
|
|
|
25,501 |
|
|
|
69 |
|
|
|
(4 |
) |
|
|
25,566 |
|
|
Auction rate securities
|
|
|
32,600 |
|
|
|
0 |
|
|
|
(4,599 |
) |
|
|
28,001 |
|
|
|
38,250 |
|
|
|
0 |
|
|
|
(3,300 |
) |
|
|
34,950 |
|
|
Municipal bonds
|
|
|
26,922 |
|
|
|
1,081 |
|
|
|
(10 |
) |
|
|
27,993 |
|
|
|
16,818 |
|
|
|
192 |
|
|
|
(52 |
) |
|
|
16,958 |
|
|
U.S. government and agency securities
|
|
|
382,191 |
|
|
|
403 |
|
|
|
(25 |
) |
|
|
382,569 |
|
|
|
206,052 |
|
|
|
38 |
|
|
|
(207 |
) |
|
|
205,883 |
|
|
Foreign government and agency securities
|
|
|
387,410 |
|
|
|
10 |
|
|
|
(2 |
) |
|
|
387,418 |
|
|
|
546,407 |
|
|
|
7 |
|
|
|
(16 |
) |
|
|
546,398 |
|
|
Floating rate notes
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
91,927 |
|
|
|
204 |
|
|
|
(1 |
) |
|
|
92,130 |
|
|
Mortgage-backed securities
|
|
|
871,125 |
|
|
|
13,149 |
|
|
|
(2,002 |
) |
|
|
882,272 |
|
|
|
598,046 |
|
|
|
8,984 |
|
|
|
(1,363 |
) |
|
|
605,667 |
|
|
Debt mutual fund
|
|
|
20,000 |
|
|
|
0 |
|
|
|
(641 |
) |
|
|
19,359 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| |
|
|
|
|
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|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
2,855,540 |
|
|
$ |
16,798 |
|
|
$ |
(7,671 |
) |
|
$ |
2,864,667 |
|
|
$ |
2,598,791 |
|
|
$ |
9,496 |
|
|
$ |
(4,944 |
) |
|
$ |
2,603,343 |
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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 December 31, 2011 and April 2, 2011:
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September 30, |
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|
|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
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|
September 30, |
|
|
|
September 30, |
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| |
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December 31, 2011 |
|
| |
|
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 |
|
|
Commercial paper
|
|
$ |
49,984 |
|
|
$ |
(2 |
) |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
49,984 |
|
|
$ |
(2 |
) |
|
Corporate bonds
|
|
|
26,915 |
|
|
|
(390 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
26,915 |
|
|
|
(390 |
) |
|
Auction rate securities
|
|
|
0 |
|
|
|
0 |
|
|
|
28,001 |
|
|
|
(4,599 |
) |
|
|
28,001 |
|
|
|
(4,599 |
) |
|
Municipal bonds
|
|
|
1,253 |
|
|
|
(3 |
) |
|
|
717 |
|
|
|
(7 |
) |
|
|
1,970 |
|
|
|
(10 |
) |
|
U.S. government and agency securities
|
|
|
209,027 |
|
|
|
(24 |
) |
|
|
1,765 |
|
|
|
(1 |
) |
|
|
210,792 |
|
|
|
(25 |
) |
|
Foreign government and agency securities
|
|
|
39,992 |
|
|
|
(2 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
39,992 |
|
|
|
(2 |
) |
|
Mortgage-backed securities
|
|
|
231,782 |
|
|
|
(1,919 |
) |
|
|
11,908 |
|
|
|
(83 |
) |
|
|
243,690 |
|
|
|
(2,002 |
) |
|
Debt mutual fund
|
|
|
19,359 |
|
|
|
(641 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
19,359 |
|
|
|
(641 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
578,312 |
|
|
$ |
(2,981 |
) |
|
$ |
42,391 |
|
|
$ |
(4,690 |
) |
|
$ |
620,703 |
|
|
$ |
(7,671 |
) |
| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
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|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
| |
|
April 2, 2011 |
|
| |
|
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 |
|
|
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 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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The Company reviewed the investment portfolio and determined that the gross unrealized losses on these investments as
of December 31, 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 December 31, 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.
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|
|
September 30, |
|
|
|
September 30, |
|
| |
|
December 31, 2011 |
|
| (In thousands) |
|
Amortized
Cost |
|
|
Estimated
Fair Value |
|
|
Due in one year or less
|
|
$ |
1,349,277 |
|
|
$ |
1,349,282 |
|
|
Due after one year through five years
|
|
|
248,334 |
|
|
|
250,976 |
|
|
Due after five years through ten years
|
|
|
265,061 |
|
|
|
269,656 |
|
|
Due after ten years
|
|
|
648,294 |
|
|
|
650,820 |
|
| |
|
|
|
|
|
|
|
|
| |
|
$ |
2,510,966 |
|
|
$ |
2,520,734 |
|
| |
|
|
|
|
|
|
|
|
Certain information related to available-for-sale securities is as follows:
| |
|
|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
December 31, |
|
|
January 1, |
|
|
December 31, |
|
|
January 1, |
|
| (In thousands) |
|
2011 |
|
|
2011 |
|
|
2011 |
|
|
2011 |
|
|
Proceeds from sale of available-for-sale securities
|
|
$ |
102,204 |
|
|
$ |
86,741 |
|
|
$ |
210,189 |
|
|
$ |
244,241 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Gross realized gains on sale of available-for-sale securities
|
|
$ |
1,049 |
|
|
$ |
488 |
|
|
$ |
2,146 |
|
|
$ |
4,842 |
|
|
Gross realized losses on sale of available-for-sale securities
|
|
|
(259 |
) |
|
|
(1,123 |
) |
|
|
(285 |
) |
|
|
(1,278 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on sale of available-for-sale securities
|
|
$ |
790 |
|
|
$ |
(635 |
) |
|
$ |
1,861 |
|
|
$ |
3,564 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of premiums on available-for-sale securities
|
|
$ |
3,183 |
|
|
$ |
2,279 |
|
|
$ |
8,758 |
|
|
$ |
5,381 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The cost of securities matured or sold is based on the specific identification method.
|