Investment Securities

12 Months Ended

Mar. 31, 2013

Investment Securities

Note 3. Investment Securities

The Company’s portfolio of available-for-sale marketable securities consists of the following:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
March 31, 2013
U.S. government and agency securities	$	113,033	$	327	$	(1	)	$	113,359
Corporate debt obligations		153,460		1,429		(30	)		154,859
Mortgage-backed securities		50,852		473		(44	)		51,281
Municipal bonds		39,661		211		—			39,872
Other debt securities		602		1		—			603
	$	357,608	$	2,441	$	(75	)	$	359,974
April 1, 2012
U.S. government and agency securities	$	141,680	$	257	$	(78	)	$	141,859
Corporate debt obligations		166,763		1,071		(166	)		167,668
Asset and mortgage-backed securities		46,395		272		(73	)		46,594
Municipal bonds		16,548		22		(2	)		16,568
Other debt securities		750		—		—			750
	$	372,136	$	1,622	$	(319	)	$	373,439

The amortized cost and estimated fair value of debt securities as of March 31, 2013, by contractual maturity, are presented below. Expected maturities will differ from contractual maturities because the issuers of securities may have the right to repay obligations without prepayment penalties. Certain debt instruments, although possessing a contractual maturity greater than one year, are classified as short-term marketable securities based on their ability to be traded on active markets and availability for current operations.

	Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	62,900	$	63,031
Due after one year through three years		186,188		187,252
Due after three years through five years		63,464		63,781
Due after five years		45,056		45,910
	$	357,608	$	359,974

The following table presents the Company’s marketable securities with unrealized losses by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2013 and April 1, 2012.

	Less Than 12 Months					12 Months or Greater					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
March 31, 2013
U.S. government and agency securities	$	4,502	$	(1	)	$	—	$	—		$	4,502	$	(1	)
Corporate debt obligations		24,203		(30	)		—		—			24,203		(30	)
Mortgage-backed securities		10,048		(44	)		—		—			10,048		(44	)
	$	38,753	$	(75	)	$	—	$	—		$	38,753	$	(75	)
April 1, 2012
U.S. government and agency securities	$	76,239	$	(78	)	$	—	$	—		$	76,239	$	(78	)
Corporate debt obligations		66,997		(166	)		—		—			66,997		(166	)
Asset and mortgage-backed securities		12,996		(69	)		139		(4	)		13,135		(73	)
Municipal bonds		1,978		(2	)		—		—			1,978		(2	)
	$	158,210	$	(315	)	$	139	$	(4	)	$	158,349	$	(319	)

As of March 31, 2013 and April 1, 2012, the fair value of certain of the Company’s available-for-sale securities was less than their cost basis. Management reviewed various factors in determining whether to recognize an impairment charge related to these unrealized losses, including the current financial and credit market environment, the financial condition and near-term prospects of the issuer of the security, the magnitude of the unrealized loss compared to the cost of the investment, the length of time the investment had been in a loss position and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery of market value. As of March 31, 2013 and April 1, 2012, the Company determined that the unrealized losses were temporary in nature and recorded them as a component of accumulated other comprehensive income.

Trading Securities

Until full liquidation of the Company’s portfolio of trading securities during fiscal 2011, the Company’s trading securities included investments in auction rate securities (ARS). During late fiscal 2008, the market auctions of many ARS began to fail, including auctions for the ARS held by the Company. In November 2008, the Company entered into an agreement with the broker for all of the ARS held by the Company, which provided the Company with certain rights (ARS Rights), in exchange for the release of potential claims and damages against the broker. The ARS Rights entitled the Company to sell the related ARS back to the broker for a price specified in the agreement. The ARS Rights agreement resulted in put options that were recognized as free standing assets separate from the ARS. The Company elected to measure the put options at fair value and classified these financial instruments as trading securities.

During fiscal 2011, the Company received $9.3 million of proceeds in connection with the redemption of certain ARS by the respective issuers and $14.5 million of proceeds related to the exercise of the ARS Rights.