SanDisk 2014 Annual Report Download - page 157

SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The gross unrealized loss related to these securities was due primarily to changes in interest rates. The
gross unrealized loss on all available-for-sale fixed income securities at December 28, 2014 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 realized gains and (losses) on sales of available-for-sale securities (in
thousands):
Fiscal years ended
December 28, December 29, December 30,
2014 2013 2012
Realized gains ...................................... $ 8,918 $ 4,724 $ 3,867
Realized losses ...................................... (1,375) (2,349) (898)
Net realized gains ................................ $ 7,543 $ 2,375 $ 2,969
Fixed income securities by contractual maturity as of December 28, 2014 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 .......................................... $ 860,203 $ 861,915
After one year through five years .................................... 2,603,444 2,606,289
After five years through ten years ................................... 122,637 122,643
After ten years ................................................ 647,111 647,914
Total .................................................... $ 4,233,395 $ 4,238,761
For those financial instruments where the carrying amounts differ from fair value, the following table
(in thousands) represents the related carrying values and fair values, which are based on quoted market
prices. The 1.5% Convertible Senior Notes due 2017 were categorized as Level 1 and the 0.5% Convertible
Senior Notes due 2020 were categorized as Level 2, based on the frequency of trading as of December 28,
2014 and December 29, 2013. See Note 7, ‘‘Financing Arrangements,’’ regarding details of each convertible
note presented.
December 28, 2014 December 29, 2013
Carrying Fair Carrying Fair
Value Value Value Value
1.5% Convertible Senior Notes due 2017 .......... $ 869,645 $ 1,948,721 $ 829,792 $ 1,467,160
0.5% Convertible Senior Notes due 2020 .......... 1,199,696 1,789,500 1,155,571 1,480,290
Total ............................... $ 2,069,341 $ 3,738,221 $ 1,985,363 $ 2,947,450
F-17
Annual Report