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Cash, Cash Equivalents and Short-Term Investments
9 Months Ended
Aug. 30, 2013
Cash, Cash Equivalents, and Short-term Investments [Abstract]  
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. We classify all of our cash equivalents and short-term investments as “available-for-sale.” In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our Condensed Consolidated Balance Sheets. Gains and losses are recognized when realized in our Condensed Consolidated Statements of Income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method.
Cash, cash equivalents and short-term investments consisted of the following as of August 30, 2013 (in thousands):
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
Current assets:
 
 
 
 
 
 
 
Cash
$
173,240

 
$

 
$

 
$
173,240

Cash equivalents:
 
 
 
 
 
 
 
Corporate bonds and commercial paper
2,500

 

 

 
2,500

Money market mutual funds
506,638

 

 

 
506,638

Time deposits
117,707

 

 

 
117,707

U.S. agency securities
14,999

 
1

 

 
15,000

U.S. Treasury securities
4,000

 

 

 
4,000

Total cash equivalents
645,844

 
1

 

 
645,845

Total cash and cash equivalents
819,084

 
1

 

 
819,085

Short-term fixed income securities:
 
 
 
 
 
 
 
Corporate bonds and commercial paper
1,283,045

 
4,685

 
(4,333
)
 
1,283,397

Foreign government securities
11,238

 
27

 
(27
)
 
11,238

Municipal securities
188,902

 
72

 
(329
)
 
188,645

U.S. agency securities
468,517

 
1,015

 
(939
)
 
468,593

U.S. Treasury securities
393,001

 
149

 
(981
)
 
392,169

Subtotal
2,344,703

 
5,948

 
(6,609
)
 
2,344,042

Marketable equity securities
184

 
626

 

 
810

Total short-term investments
2,344,887

 
6,574

 
(6,609
)
 
2,344,852

Total cash, cash equivalents and short-term investments
$
3,163,971

 
$
6,575

 
$
(6,609
)
 
$
3,163,937


Cash, cash equivalents and short-term investments consisted of the following as of November 30, 2012 (in thousands):
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
Current assets:
 
 
 
 
 
 
 
Cash
$
200,771

 
$

 
$

 
$
200,771

Cash equivalents:
 

 
 
 
 
 
 

Corporate bonds and commercial paper
3,998

 

 

 
3,998

Money market mutual funds and repurchase agreements
1,171,270

 

 

 
1,171,270

Municipal securities
3,895

 

 

 
3,895

Time deposits
45,118

 

 

 
45,118

Total cash equivalents
1,224,281

 

 

 
1,224,281

Total cash and cash equivalents
1,425,052

 

 

 
1,425,052

Short-term fixed income securities:
 
 
 
 
 
 
 

Corporate bonds and commercial paper
1,059,158

 
11,415

 
(133
)
 
1,070,440

Foreign government securities
6,919

 
45

 
(12
)
 
6,952

Municipal securities
180,488

 
97

 
(60
)
 
180,525

Time deposits
20,113

 

 

 
20,113

U.S. agency securities
501,863

 
2,346

 
(18
)
 
504,191

U.S. Treasury securities
330,072

 
801

 
(37
)
 
330,836

Subtotal
2,098,613

 
14,704

 
(260
)
 
2,113,057

Marketable equity securities
237

 
7

 

 
244

Total short-term investments
2,098,850

 
14,711

 
(260
)
 
2,113,301

Total cash, cash equivalents and short-term investments
$
3,523,902

 
$
14,711

 
$
(260
)
 
$
3,538,353



See Note 4 for further information regarding the fair value of our financial instruments.
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months, as of August 30, 2013 and November 30, 2012 (in thousands):
 
2013
 
2012
 
Fair 
Value
 
Gross
Unrealized
Losses
 
Fair 
Value
 
Gross
Unrealized
Losses
Corporate bonds and commercial paper
$
667,920

 
$
(4,334
)
 
$
95,489

 
$
(132
)
Foreign government securities
6,444

 
(27
)
 
2,105

 
(12
)
Municipal securities
74,804

 
(329
)
 
40,524

 
(60
)
U.S. Treasury and agency securities
431,040

 
(1,919
)
 
48,203

 
(55
)
Total
$
1,180,208

 
$
(6,609
)
 
$
186,321

 
$
(259
)
 
There were 535 securities and 65 securities that were in an unrealized loss position for less than twelve months at August 30, 2013 and at November 30, 2012, respectively.
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that were in a continuous unrealized loss position for more than twelve months, as of November 30, 2012 (in thousands):
 
2012
 
Fair 
Value
 
Gross
Unrealized
Losses
Corporate bonds and commercial paper
$
2,999

 
$
(1
)
Total
$
2,999

 
$
(1
)

As of August 30, 2013, there were no securities in an unrealized loss position for more than twelve months. As of November 30, 2012, there was one security in an unrealized loss position for more than twelve months.
The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of August 30, 2013 (in thousands):
 
Amortized
Cost
 
Estimated
Fair Value
Due within one year
$
572,921

 
$
573,977

Due between one and two years
812,070

 
814,355

Due between two and three years
681,816

 
680,980

Due after three years
277,896

 
274,730

Total
$
2,344,703

 
$
2,344,042


We review our debt and marketable equity securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we write down these investments to fair value. For debt securities, the portion of the write-down related to credit loss would be recorded to interest and other income, net in our Condensed Consolidated Statements of Income. Any portion not related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our Condensed Consolidated Balance Sheets. For equity securities, the write-down would be recorded to investment gains (losses), net in our Condensed Consolidated Statements of Income. During the nine months ended August 30, 2013, we did not consider any of our investments to be other-than-temporarily impaired.