Available-for-sale investments are carried at fair value, inclusive of unrealized gains and losses, and net of discount accretion and premium amortization computed using the level yield method. Net unrealized gains and losses are included in other comprehensive income (loss) net of applicable income taxes. Gains or losses on sales of available-for-sale investments are recognized using the first-in, first-out method and are included in other expense, net or interest expense (income), net, depending upon the type of security.

Available-for-sale securities as of June 29, 2014 are summarized as follows (in thousands):



	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss		Net Unrealized Gain		Market Value
Short-Term Investments:
Equity securities	$	7,000	$	13,114	$	—	$	13,114	$	20,114
Other Assets:
Equity securities	$	4,631	$	3,845	$	—	$	3,845	$	8,476

Available-for-sale securities as of June 30, 2013 are summarized as follows (in thousands):



	Amortized Costs		Gross Unrealized Gain		Gross Unrealized Loss			Net Unrealized Gain		Market Value
Short-Term Investments:
Corporate debt	$	—	$	40	$	—		$	40	$	40
U.S. government and agency obligations	11,007		9		—			9		11,016
Total short-term investments	$	11,007	$	49	$	—		$	49	$	11,056
Other Assets:
Equity securities	$	11,631	$	5,739	$	(5	)	$	5,734	$	17,365

The Company manages its total portfolio to encompass a diversified pool of investment‑grade securities. The investment policy is to manage its total cash and investments balances to preserve principal and maintain liquidity while achieving market returns on the investment portfolio.

The Company also holds as strategic investments the common stock of three publicly traded foreign companies. The common stock of the three companies are shown as “Equity securities” in the table above and are included in short-term investments and other assets on the consolidated balance sheets, depending on the expected holding period for the security. The common shares of the publicly traded companies are traded on either the Tokyo Stock Exchange or the Taiwan Stock Exchange.

The Company holds an option on one of the strategic investments to put the associated number of common shares back to the issuer at a fixed price in local currency (which is described as the “Put Option” in Note 1). The Put Option became effective September 1, 2009 and is reported at fair value. As of June 29, 2014, the fair value of the Put Option was $1.5 million, with changes in fair value recorded in other expense, net (See Note 3, “Derivative Financial Instruments”). Dividend income from these investments was $0.2 million, $0.2 million, and $0.1 million for the fiscal years ended June 29, 2014, June 30, 2013, and June 24, 2012, respectively.

The Company also holds as strategic investments the common stock and preferred stock of a privately held domestic company. The common stock and preferred stock of the privately held domestic company was carried at cost of $1.5 million in other assets. During the second quarter of fiscal year 2012, the privately held domestic company in which the Company has an equity investment experienced a negative change in financial condition. The Company then evaluated that the investment was permanently impaired and recorded an impairment charge of $1.5 million during the second quarter of fiscal year 2012.

In addition, the Company holds a note receivable from another privately held company which was carried at cost of $0.4 million. This investment was carried at cost as the Company determined that it was nonmarketable since the issuer is a start-up company whose securities are not publicly traded, and as a result, it was not practicable to estimate the fair value of the investment. During the fiscal year ended June 30, 2013, the privately held company in which the Company has an equity investment experienced a negative change in financial condition. The Company then evaluated that the investment was permanently impaired and recorded an impairment charge of $0.4 million during the fiscal year ended June 30, 2013.

The following table provides the Company’s other-than-temporary impairments for equity, asset-backed, and mortgage-backed securities (in thousands):



	Fiscal Year Ended
	June 29, 2014		June 30, 2013		June 24, 2012
Privately held domestic company - common and preferred stock	$	—	$	350	$	1,504
Publicly traded foreign companies - common stock	—		—		1,332
Mortgage-backed securities	—		—		29
Total other-than-temporary impairments	$	—	$	350	$	2,865

Unrealized loss positions are measured and determined at the end of each fiscal year. There were no available-for-sale investments in a gross unrealized loss position as of June 29, 2014. Available-for-sale investments in a gross unrealized loss position as of June 30, 2013 included an equity investment held in a de minimis gross unrealized loss position for less than 12 months, and there were no investments in a gross unrealized loss position for 12 months or more.

During the fiscal year ended June 29, 2014, the Company sold a de minimis amount of available-for-sale securities, and the related proceeds and gross realized gains and (losses) were also de minimis. During the fiscal year ended June 30, 2013, available-for-sale securities were sold for total proceeds of $52.1 million, and gross realized gains and (losses) were de minimis. During the fiscal year ended June 24, 2012, available-for-sale securities were sold for total proceeds of $75.8 million, and gross realized gains and (losses) were $0.1 million and $(0.1) million, respectively. The cost of marketable securities sold was determined by the first-in, first-out method.

For information regarding the unrealized holding gains (losses) on available-for-sale investments reclassified out of accumulated other comprehensive income into the consolidated statement of operations, see "Note 8: Accumulated Other Comprehensive Income (Loss)."

Fair Value of Investments

The following tables present the balances of investments measured at fair value on a recurring basis as of June 29, 2014 and June 30, 2013 (in thousands):



	As of June 29, 2014
	Total		Level 1		Level 2		Level 3
Equity securities	28,590		28,590		—		—
Total investments at fair value	$	28,590	$	28,590	$	—	$	—



	As of June 30, 2013
	Total		Level 1		Level 2		Level 3
Corporate debt	$	40	$	—	$	40	$	—
U.S. government and agency obligations	11,016		6,004		5,012		—
Equity securities	17,365		17,365		—		—
Total investments at fair value	$	28,421	$	23,369	$	5,052	$	—