SanDisk 2011 Annual Report Download - page 139

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This is a TAB type table. Insert
conts here. Annual Report
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Available-for-Sale Investments. Available-for-sale investments were as follows (in thousands):
January 1, 2012 January 2, 2011
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss Fair Value
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss Fair Value
Fixed income securities:
U.S. Treasury and
government agency
securities .......... $ 219,366 $ 69 $ (4) $ 219,431 $ 36,015 $ 53 $ (33) $ 36,035
U.S. government-
sponsored agency
securities .......... 97,087 10 (26) 97,071 24,336 85 — 24,421
Corporate notes and
bonds ............. 780,650 1,707 (3,889) 778,468 401,182 2,689 (196) 403,675
Asset-backed
securities .......... 180,828 61 (149) 180,740 10,069 45 (5) 10,109
Mortgage-backed
securities .......... 1,137 5 — 1,142 6,500 35 — 6,535
Municipal notes and
bonds ............. 3,231,240 20,470 (1,202) 3,250,508 3,972,268 9,435 (13,641) 3,968,062
Total fixed income
securities ........ 4,510,308 22,322 (5,270) 4,527,360 4,450,370 12,342 (13,875) 4,448,837
Equity investments ...... — — — — 68,525 21,900 — 90,425
Total
available-for-sale
investments ...... $4,510,308 $ 22,322 $ (5,270) $4,527,360 $4,518,895 $ 34,242 $ (13,875) $4,539,262
The fair value and gross unrealized losses on the available-for-sale securities that have been in an unrealized
loss position, aggregated by type of investment instrument, and the length of time that individual securities have
been in a continuous unrealized loss position as of January 1, 2012, are summarized in the following table (in
thousands). Available-for-sale securities that were in an unrealized gain position have been excluded from the
table.
Less than 12 months Greater than 12 months
Fair Value
Gross
Unrealized Loss Fair Value
Gross
Unrealized Loss
U.S. Treasury and government agency securities . . $ 23,680 $ (4) $ — $ —
U.S. government-sponsored agency securities ..... 79,922 (26) — —
Corporate notes and bonds .................... 311,254 (3,889) — —
Asset-backed securities ...................... 122,694 (149) — —
Municipal notes and bonds .................... 346,930 (1,152) 21,713 (50)
Total ................................. $ 884,480 $ (5,220) $ 21,713 $ (50)
The gross unrealized loss related to U.S. Treasury and government agency securities, corporate and
municipal notes and bonds and asset-backed securities was primarily due to changes in interest rates. The gross
unrealized loss on all available-for-sale fixed income securities at January 1, 2012 was considered temporary in
nature. Factors considered in determining whether a loss is temporary include the length of time and extent to
which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee,
and the Company’s intent and ability to hold an investment for a period of time sufficient to allow for any
anticipated recovery in market value. For debt security investments, the Company considered additional factors
including the Company’s intent to sell the investments or whether it is “more likely than not” the Company will
be required to sell the investments before the recovery of its amortized cost.
F-15