SanDisk 2013 Annual Report Download - page 182

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The gross unrealized loss related to U.S. Treasury securities, U.S. government-sponsored agency
securities, international government securities, corporate and municipal notes and bonds, and mortgage-
backed securities was primarily due to changes in interest rates. The gross unrealized loss on all
available-for-sale fixed income securities at December 29, 2013 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.
The following table shows the gross realized gains and (losses) on sales of available-for-sale securities
(in thousands).
Fiscal years ended
December 29, December 30, January 1,
2013 2012 2012
Gross realized gains .................................. $ 4,724 $ 3,867 $ 36,762
Gross realized losses .................................. (2,349) (898) (2,213)
Fixed income securities by contractual maturity as of December 29, 2013 are shown below (in
thousands). Actual maturities may differ from contractual maturities because issuers of the securities may
have the right to prepay obligations or the Company has the option to demand payment.
Amortized Fair
Cost Value
Due in one year or less .......................................... $ 1,220,506 $ 1,224,980
After one year through five years .................................... 3,338,613 3,350,852
After five years through ten years ................................... 79,295 79,084
After ten years ................................................ 490,419 490,337
Total .................................................... $ 5,128,833 $ 5,145,253
For those financial instruments where the carrying amounts differ from fair value, the following table
represents the related carrying values and fair values, which are based on quoted market prices (in
thousands). These financial instruments were categorized as Level 1 as of both December 29, 2013 and
December 30, 2012 with the exception of the 0.5% Sr. Convertible Notes due 2020, which is categorized as
Level 2. See Note 6, ‘‘Financing Arrangements,’’ regarding details of each convertible note presented.
December 29, 2013 December 30, 2012
Carrying Fair Carrying Fair
Value Value Value Value
1% Sr. Convertible Notes due 2013 .............. $ — $ — $ 906,708 $ 927,820
1.5% Sr. Convertible Notes due 2017 ............ 829,792 1,467,160 789,913 1,159,370
0.5% Sr. Convertible Notes due 2020 ............ 1,155,571 1,480,290 — —
Total ............................... $ 1,985,363 $ 2,947,450 $ 1,696,621 $ 2,087,190
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