SanDisk 2012 Annual Report Download - page 179

This is a TAB type table. Insert
conts here. Annual Report
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of December 30, 2012 and January 1, 2012, the Company had not elected the fair value option for any
financial assets and liabilities for which such an election would have been permitted.
Available-for-Sale Investments. Available-for-sale investments were as follows (in thousands):
December 30, 2012 January 1, 2012
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
securities .......... $ 27,377 $ 9 $ — $ 27,386 $ 214,366 $ 69 $ (4) $ 214,431
U.S. government-
sponsored agency
securities .......... 28,339 41 (1) 28,379 97,087 10 (26) 97,071
International
government
securities .......... 153,936 13 (3) 153,946 5,000 — — 5,000
Corporate notes and
bonds ............. 864,170 3,890 (938) 867,122 780,650 1,707 (3,889) 778,468
Asset-backed
securities .......... 179,356 453 — 179,809 180,828 61 (149) 180,740
Mortgage-backed
securities .......... 1,872 8 (14) 1,866 1,137 5 — 1,142
Municipal notes and
bonds ............. 3,665,032 22,697 (912) 3,686,817 3,231,240 20,470 (1,202) 3,250,508
Total available-for-
sale investments . . . $4,920,082 $ 27,111 $ (1,868) $4,945,325 $4,510,308 $ 22,322 $ (5,270) $4,527,360
The fair value and gross unrealized losses on 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 December 30, 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. government-sponsored agency securities ..... $ 4,086 $ (1) $ — $ —
International government securities ............. 9,299 (3) — —
Corporate notes and bonds .................... 93,083 (937) 5,000 (1)
Mortgage-backed securities ................... 1,247 (14) — —
Municipal notes and bonds .................... 466,238 (885) 14,531 (27)
Total ................................. $ 573,953 $ (1,840) $ 19,531 $ (28)
The gross unrealized loss related to U.S. government-sponsored agency securities, corporate and municipal
notes and bonds, and mortgage-backed securities was primarily due to changes in interest rates. The gross
unrealized loss related to international government securities is primarily due to changes in interest rates and
exchange rates, with the change in value due to exchange rates mitigated through offsetting non-designated
exchange rate contracts. The gross unrealized loss on all available-for-sale fixed income securities at
December 30, 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
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