Investments

We classified all of our investments as “available for sale” as of September 29, 2012 and December 31, 2011. Accordingly, we state our investments at estimated fair value. Fair values are determined based on quoted market prices or pricing models using current market rates. We deem all investments to be available to meet current working capital requirements. The cost of securities sold was determined based on the specific identification method.

The following table summarizes our investments:



	September 29, 2012								December 31, 2011
	Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair Value		Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair Value
Available-for-sale securities (in thousands)	Amortized Cost		Gains		Losses		Estimated Fair Value		Amortized Cost		Gains		Losses		Estimated Fair Value
Commercial paper	$	17,997	$	—	$	—	$	17,997	$	9,996	$	—	$	—	$	9,996
Money market funds	5,318		—		—		5,318		6,706		—		—		6,706
U.S. corporate debt securities	—		—		—		—		1,441		—		1		1,440
U.S. treasury bills and notes	4,022		4		—		4,026		3,908		5		—		3,913
Securities and obligations of U.S. government agencies	198,546		60		59		198,547		162,703		37		71		162,669
Total	$	225,883	$	64	$	59	$	225,888	$	184,754	$	42	$	72	$	184,724

The following table identifies the balance sheet classifications of our investments at September 29, 2012 and December 31, 2011:



(In thousands)	September 29, 2012		December 31, 2011
Cash equivalents	$	19,317	$	15,557
Short-term investments	206,571		169,167
Investments, at estimated fair value	$	225,888	$	184,724

The gross amortized cost and estimated fair value of our investments at September 29, 2012 and December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.



	September 29, 2012				December 31, 2011
(In thousands)	Gross Amortized Cost		Fair Value		Gross Amortized Cost		Fair Value
Due in one year or less	$	169,310	$	169,302	$	153,346	$	153,328
Due after one year through five years	56,573		56,586		31,408		31,396
Total	$	225,883	$	225,888	$	184,754	$	184,724

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at September 29, 2012:



	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Securities and obligations of U.S. government agencies	28,508		59		28,508		59
Total	$	28,508	$	59	$	28,508	$	59

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at December 31, 2011:



	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Corporate debt securities	$	1,440	$	1	$	1,440	$	1
Securities and obligations of U.S. government agencies	28,173		71		28,173		71
Total	$	29,613	$	72	$	29,613	$	72

We review our investment portfolio regularly for impairment. A security is considered impaired when its fair value is less than its cost basis. If we intend to sell an impaired debt security or it is more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, an other-than-temporary-impairment (“OTTI”) is deemed to have occurred. In these instances, the OTTI loss is recognized in earnings equal to the entire difference between the debt security’s amortized cost basis and its fair value at the balance sheet date.

If we do not intend to sell an impaired debt security and it is not more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, we must determine whether it will recover its amortized cost basis. If we conclude it will not, a credit loss exists and the resulting OTTI is separated into:


•	The amount representing the credit loss, which is recognized in earnings, and


•	The amount related to all other factors, which is recognized in other comprehensive income.

As part of this assessment we will consider the various characteristics of each security, including, but not limited to the following: the length of time and the extent to which the fair value has been less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or a geographic area; the payment structure of the debt security; failure of the issuer of the security to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency and related outlook or status; recoveries or additional declines in fair value subsequent to the balance sheet date. The relative importance of this information varies based on the facts and circumstances surrounding each security, as well as the economic environment at the time of assessment.

We have not recorded any OTTI of our investments for the three and nine month periods ended September 29, 2012 and October 1, 2011.