Financial Instruments

Cash, Cash Equivalents and Marketable Securities

The following tables summarize our cash and available-for-sale securities by significant investment category.



	December 31, 2012
(In thousands)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities

Cash	$	89,194	$	—	$	—		$	89,194	$	89,194	$	—	$	—

Available for sale:
Level 1:
Money market funds	2,739,904		—		—			2,739,904		2,739,904		—		—
U.S. treasury securities	564,713		5,231		(3		)	569,941		33,519		22,493		513,929
Subtotal	3,304,617		5,231		(3		)	3,309,845		2,773,423		22,493		513,929

Level 2:
U.S. agency securities	116,802		58		(1		)	116,859		11,799		53,438		51,622
Non-U.S. government securities	11,644		10		(2		)	11,652		—		2,730		8,922
Municipal bond	1,372		1		—			1,373		—		752		621
Corporate securities	193,048		436		(64		)	193,420		2,211		61,545		129,664
Subtotal	322,866		505		(67		)	323,304		14,010		118,465		190,829
Total	$	3,716,677	$	5,736	$	(70	)	$	3,722,343	$	2,876,627	$	140,958	$	704,758



	December 31, 2011
(In thousands)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities			Long-Term Marketable Securities

Cash	$	165,122	$	—	$	—		$	165,122	$	165,122	$	—		$	—

Available for sale:
Level 1:
Money market funds	3,189,462		—		—			3,189,462		3,189,462		—			—
U.S. treasury securities	6,199		—		—			6,199		—		6,199			—
Corporate securities	12,999		—		—			12,999		10,999		2,000			—
Subtotal	3,208,660		—		—			3,208,660		3,200,461		8,199		—	—

Level 2:
U.S. agency securities	41,167		11		(7		)	41,171		750		25,890			14,531
Non-U.S. government securities	8,221		—		(8		)	8,213		—		8,213			—
Municipal bond	754		—		(1		)	753		—		—			753
Corporate securities	87,415		84		(230		)	87,269		5,600		22,920			58,749
Subtotal	137,557		95		(246		)	137,406		6,350		57,023			74,033
Total	$	3,511,339	$	95	$	(246	)	$	3,511,188	$	3,371,933	$	65,222		$	74,033

We have made certain cost method investments of approximately $4.5 million. These investments are included within Other assets, net in our consolidated balance sheets.

The adjusted cost and estimated fair value of marketable debt securities (corporate bonds, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of December 31, 2012, 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.



	December 31, 2012
(In thousands)	Adjusted Cost		Estimated Fair Value
Due in one year or less	$	188,431	$	188,487
Due after one year through five years	699,148		704,758
	$	887,579	$	893,245

Derivative Financial Instruments

We have used derivative financial instruments primarily to manage foreign currency exchange rate risk. Substantially all of our operational expenditures are transacted in U.S. dollars. However, operating expenditures of our subsidiaries are incurred in or exposed to other currencies, primarily the Malaysian Ringgit. We have hedged portions of the forecasted foreign currency exposure associated with operational expenditures in Malaysia generally up to three months in advance. We recorded all derivatives at fair value. These forward foreign currency exchange contracts were designated and qualified as cash flow hedges, and the effective portion of the gain or loss on the forward contracts was reported as a component of other comprehensive income and reclassified into net income in the same period during which the hedged transaction affected earnings.

We did not have any open hedge contracts as of December 31, 2012 and 2011.