XML 73 R14.htm IDEA: XBRL DOCUMENT v3.2.0.727
Investments (Notes)
 3 Months Ended
Jun. 30, 2015
Investments [Abstract]  
Investments
Investments
 
The Company's investments are intended to establish a high-quality portfolio that preserves principal, meets liquidity needs, avoids inappropriate concentrations, and delivers an appropriate yield in relationship to the Company's investment guidelines and market conditions.  The following is a summary of available-for-sale securities at June 30, 2015 (amounts in thousands):
 
Available-for-sale Securities
 
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
Government agency bonds
$
799,662

 
$
494

 
$
(1,150
)
 
$
799,006

Municipal bonds
41,142

 
9

 
(765
)
 
40,386

Auction rate securities
9,825

 
—

 
—

 
9,825

Corporate bonds and debt
1,017,832

 
1,149

 
(1,171
)
 
1,017,810

 
$
1,868,461

 
$
1,652

 
$
(3,086
)
 
$
1,867,027

 
The following is a summary of available-for-sale securities at March 31, 2015 (amounts in thousands):
 
Available-for-sale Securities
 
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
Government agency bonds
$
741,780

 
$
676

 
$
(200
)
 
$
742,256

Municipal bonds
41,552

 
155

 
(9
)
 
41,698

Auction rate securities
9,825

 
—

 
—

 
9,825

Time deposits (1)
506

 
—

 
—

 
506

Corporate bonds and debt
924,818

 
2,376

 
(265
)
 
926,929

Marketable equity securities
1,362

 
11,804

 
—

 
13,166

 
$
1,719,843

 
$
15,011

 
$
(474
)
 
$
1,734,380



(1) Time deposits in various financial institutions with maturities greater than three months that will mature within one year.

At June 30, 2015, the Company's available-for-sale securities are presented on the condensed consolidated balance sheets as short-term investments of $969.0 million and long-term investments of $898.0 million.  At March 31, 2015, the Company's available-for-sale securities are presented on the condensed consolidated balance sheets as short-term investments of $1,351.1 million and long-term investments of $383.3 million.

At March 31, 2015, the Company's marketable equity securities consisted of an investment in Hua Hong Semiconductor Limited (Hua Hong), which effected its initial public offering on the Hong Kong stock exchange on October 15, 2014. This investment was previously classified as a non-marketable cost-method investment, and had a carrying value of $3.6 million. The Company sold all remaining shares of Hua Hong in the three months ended June 30, 2015.

The Company sold available-for-sale investments for proceeds of $89.2 million and $144.0 million during the three months ended June 30, 2015 and June 30, 2014, respectively. During the three months ended June 30, 2015, the Company had net realized gains of $14.0 million from sales of available-for-sale marketable equity and debt securities. The Company had no material realized gains from the sale of available-for-sale securities during the three months ended June 30, 2014. The Company determines the cost of an investment sold on an average cost basis at the individual security level for sales from multiple lots. For all other sales, the Company uses an adjusted cost basis at the individual security level.

The following tables show all investments in an unrealized loss position for which an other-than-temporary impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position (amounts in thousands):
 
June 30, 2015
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
Government agency bonds
$
442,847

 
$
(1,061
)
 
$
14,911

 
$
(89
)
 
$
457,758

 
$
(1,150
)
Municipal bonds
37,104

 
(765
)
 
—

 
—

 
37,104

 
(765
)
Corporate bonds and debt
424,510

 
(1,088
)
 
28,059

 
(83
)
 
452,569

 
(1,171
)
 
$
904,461

 
$
(2,914
)
 
$
42,970

 
$
(172
)
 
$
947,431

 
$
(3,086
)


 
March 31, 2015
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
Government agency bonds
$
162,948

 
$
(142
)
 
$
29,942

 
$
(58
)
 
$
192,890

 
$
(200
)
Municipal bonds
13,318

 
(9
)
 
—

 
—

 
13,318

 
(9
)
Corporate bonds and debt
163,095

 
(219
)
 
19,021

 
(46
)
 
182,116

 
(265
)
 
$
339,361

 
$
(370
)
 
$
48,963

 
$
(104
)
 
$
388,324

 
$
(474
)


Management does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of June 30, 2015 and the Company's intent is to hold these investments until these assets are no longer impaired, except for certain auction rate securities (ARS).  For those debt securities not scheduled to mature until after June 30, 2016, such recovery is not anticipated to occur in the next year and these investments have been classified as long-term investments on the condensed consolidated balance sheet.
 
The amortized cost and estimated fair value of the available-for-sale securities at June 30, 2015, by contractual maturity, excluding corporate debt of $6.2 million, which has no contractual maturity, are shown below (amounts in thousands).  Expected maturities can differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties, and the Company views its available-for-sale securities as available for current operations.
 
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
Available-for-sale
 
 
 
 
 
 
 
Due in one year or less
$
269,962

 
$
295

 
$
(78
)
 
$
270,179

Due after one year and through five years
1,485,199

 
1,357

 
(2,190
)
 
1,484,366

Due after five years and through ten years
97,285

 
—

 
(818
)
 
96,467

Due after ten years
9,825

 
—

 
—

 
9,825

 
$
1,862,271

 
$
1,652

 
$
(3,086
)
 
$
1,860,837