Composition of Certain Financial Statement Captions

Cash, Cash Equivalents, and Investments

Cash, cash equivalents, and investments consist of the following:



	March 29, 2013	September 28, 2012
	(in thousands)
Cash and cash equivalents:
Cash	$325,741	$468,622
Cash equivalents:
Money market funds	2,767	17,090
Commercial paper	—	4,885
Municipal debt securities	—	2,003
Total cash and cash equivalents	328,508	492,600
Short-term investments:
U.S. agency securities	6,902	3,999
Commercial paper	6,980	19,414
Corporate bonds	54,056	107,243
Municipal debt securities	56,477	172,037
Total short-term investments	124,415	302,693
Long-term investments (1):
U.S. agency securities	46,837	21,013
Corporate bonds	102,700	112,993
Municipal debt securities	175,409	227,608
Other long-term investments (2)	3,000	—
Total long-term investments	327,946	361,614
Total cash, cash equivalents and investments	$780,869	$1,156,907


(1)	Our long-term investments have maturities that range from one to three years.


(2)	Other long-term investments include a $3.0 million investment made in the first quarter of fiscal 2013, which we have accounted for under the cost method of accounting.

Our investment portfolio, which is recorded as cash equivalents, short-term investments, and long-term investments, consists of the following:



	March 29, 2013
	Cost	Unrealized Gains	Unrealized Losses	Estimated Fair Value
	(in thousands)
Money market funds	$2,767	$—	$—	$2,767
U.S. agency securities	53,723	21	(5)	53,739
Commercial paper	6,980	—	—	6,980
Corporate bonds	156,325	443	(12)	156,756
Municipal debt securities	231,532	398	(44)	231,886
Cash equivalents and investments	$451,327	$862	$(61)	$452,128



	September 28, 2012
	Cost	Unrealized Gains	Unrealized Losses	Estimated Fair Value
	(in thousands)
Money market funds	$17,090	$—	$—	$17,090
U.S. agency securities	24,997	18	(3)	25,012
Commercial paper	24,299	—	—	24,299
Corporate bonds	219,265	990	(19)	220,236
Municipal debt securities	400,958	728	(38)	401,648
Cash equivalents and investments	$686,609	$1,736	$(60)	$688,285

We have classified all of our investments listed in the tables above as available-for-sale securities recorded at fair market value in our condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income. Upon sale, amounts of gains and losses reclassified into earnings are determined based on specific identification of the securities sold.

The following tables show the gross unrealized losses and the fair value for those available-for-sale securities that were in an unrealized loss position:



	March 29, 2013
	Less than 12 months		12 months or greater		Total
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(in thousands)
U.S. agency securities	$14,061	$(5)	$—	$—	$14,061	$(5)
Corporate bonds	24,670	(12)	—	—	24,670	(12)
Municipal debt securities	58,284	(43)	1,583	(1)	59,867	(44)
Total	$97,015	$(60)	$1,583	$(1)	$98,598	$(61)



	September 28, 2012
	Less than 12 months		12 months or greater		Total
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(in thousands)
U.S. agency securities	$6,999	$(3)	$—	$—	$6,999	$(3)
Corporate bonds	25,277	(19)	—	—	25,277	(19)
Municipal debt securities	87,705	(37)	5,565	(1)	93,270	(38)
Total	$119,981	$(59)	$5,565	$(1)	$125,546	$(60)

The unrealized losses on our available-for-sale securities were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of March 29, 2013, we had certain securities that were in an unrealized loss position, however we do not intend to, nor currently anticipate a need to sell these securities prior to recovering the associated unrealized losses. We expect to recover the full carrying value of these securities. As a result, we do not consider any portion of the unrealized losses at March 29, 2013 or September 28, 2012 to be an other-than-temporary impairment, nor do we consider any of the unrealized losses to be credit losses.

The following table summarizes the amortized cost and estimated fair value of short-term and long-term available-for-sale investments based on stated maturities as of March 29, 2013 and September 28, 2012:



	March 29, 2013		September 28, 2012
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
	(in thousands)
Due within 1 year	$124,266	$124,415	$302,154	$302,693
Due in 1 to 2 years	180,371	180,674	209,302	209,871
Due in 2 to 3 years	143,925	144,272	151,174	151,743
Total	$448,562	$449,361	$662,630	$664,307

Accounts Receivable

Accounts receivable consists of the following:



	March 29, 2013	September 28, 2012
	(in thousands)
Trade accounts receivable	$87,823	$43,565
Accounts receivable related to patent administration program	4,476	886
Accounts receivable, gross	92,299	44,451
Less: allowance for doubtful accounts	(1,098)	(956)
Accounts receivable, net	$91,201	$43,495

Inventories

Inventories are stated at the lower of cost (first-in, first-out) or market and consist of the following:



	March 29, 2013	September 28, 2012
	(in thousands)
Raw materials	$3,506	$4,403
Work in process	117	—
Finished goods	15,864	12,297
Inventories	$19,487	$16,700

We have included $4.5 million and $6.5 million of raw materials inventory within other non-current assets in our condensed consolidated balance sheets as of March 29, 2013 and September 28, 2012, respectively. The majority of the inventory included in non-current assets was purchased in bulk in fiscal 2012 to obtain a significant volume discount, and is expected to be consumed over a period that exceeds 12 months. We have reviewed anticipated consumption rates of this inventory and do not believe there to be material risk of obsolescence prior to the ultimate sale of the inventory.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:



	March 29, 2013	September 28, 2012
	(in thousands)
Prepaid assets	$12,283	$14,955
Other current assets	12,013	13,165
Income tax receivable	5,136	5,712
Prepaid expenses and other current assets	$29,432	$33,832

Property, Plant and Equipment

Property, plant and equipment are recorded at cost and consist of the following:



	March 29, 2013	September 28, 2012
	(in thousands)
Land	$47,994	$48,227
Buildings	33,048	27,266
Leasehold improvements	63,817	68,352
Machinery and equipment	34,428	29,070
Computer systems and software	88,566	86,266
Furniture and fixtures	13,387	13,158
Construction in progress	82,135	79,965
	363,375	352,304
Less: accumulated depreciation	(114,358)	(97,628)
Property, plant and equipment, net	$249,017	$254,676

Depreciation expense for our property, plant and equipment is included in cost of products, cost of services, research and development expenses, sales and marketing expenses, and general and administrative expenses in our condensed consolidated statements of operations.

Goodwill and Intangible Assets

The following table outlines changes to the carrying amount of goodwill:



	Total
	(in thousands)
Balance at September 28, 2012	$281,375
Translation adjustments	(396)
Balance at March 29, 2013	$280,979

Intangible assets consist of the following:



	March 29, 2013			September 28, 2012
	Cost	Accumulated Amortization	Net	Cost	Accumulated Amortization	Net
Intangible assets subject to amortization:	(in thousands)
Acquired patents and technology	$79,113	$(45,555)	$33,558	$79,213	$(40,071)	$39,142
Customer relationships	30,675	(17,971)	12,704	30,679	(16,386)	14,293
Other intangibles	20,921	(18,694)	2,227	20,925	(17,834)	3,091
Total	$130,709	$(82,220)	$48,489	$130,817	$(74,291)	$56,526

Amortization expense for our intangible assets is included in cost of licensing, cost of products, and sales and marketing expenses in our condensed consolidated statements of operations.

As of March 29, 2013, our expected amortization expense in future periods is as follows:



Fiscal Year	Amortization Expense
	(in thousands)
Remainder of 2013	$7,799
2014	13,566
2015	11,111
2016	8,945
2017	5,816
Thereafter	1,252
Total	$48,489

Accrued Liabilities

Accrued liabilities consist of the following:



	March 29, 2013	September 28, 2012
	(in thousands)
Accrued royalties	$5,664	$2,391
Amounts payable to joint licensing program partners	43,045	35,492
Accrued compensation and benefits	42,106	47,331
Accrued professional fees	4,064	4,893
Other accrued liabilities	24,759	25,985
Accrued liabilities	$119,638	$116,092

Other Non-Current Liabilities

Other non-current liabilities consist of the following:



	March 29, 2013	September 28, 2012
	(in thousands)
Supplemental retirement plan obligations	$2,046	$2,042
Non-current tax liabilities	23,654	20,862
Other liabilities	18,040	16,933
Other non-current liabilities	$43,740	$39,837

See Note 7 “Income Taxes” for additional information related to tax liabilities.