CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. We classify all of our cash equivalents and short-term investments as “available-for-sale.” In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our condensed consolidated balance sheets. Gains and losses are recognized when realized in our condensed consolidated statements of income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method.

Cash, cash equivalents and short-term investments consisted of the following as of June 2, 2017 (in thousands):



	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Current assets:
Cash	$	239,947	$	—	$	—		$	239,947
Cash equivalents:
Money market mutual funds	1,062,174		—		—			1,062,174
Time deposits	14,829		—		—			14,829
Total cash equivalents	1,077,003		—		—			1,077,003
Total cash and cash equivalents	1,316,950		—		—			1,316,950
Short-term fixed income securities:
Asset-backed securities	101,420		37		(198		)	101,259
Corporate bonds and commercial paper	2,427,417		7,584		(4,304		)	2,430,697
Municipal securities	144,567		117		(84		)	144,600
U.S. agency securities	2,600		—		—			2,600
U.S. Treasury securities	937,334		22		(1,949		)	935,407
Total short-term investments	3,613,338		7,760		(6,535		)	3,614,563
Total cash, cash equivalents and short-term investments	$	4,930,288	$	7,760	$	(6,535	)	$	4,931,513

Cash, cash equivalents and short-term investments consisted of the following as of December 2, 2016 (in thousands):



	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Current assets:
Cash	$	208,635	$	—	$	—		$	208,635
Cash equivalents:
Corporate bonds and commercial paper	1,249		—		—			1,249
Money market mutual funds	782,210		—		—			782,210
Municipal securities	1,301		—		—			1,301
Time deposits	17,920		—		—			17,920
Total cash equivalents	802,680		—		—			802,680
Total cash and cash equivalents	1,011,315		—		—			1,011,315
Short-term fixed income securities:
Asset-backed securities	111,009		95		(190		)	110,914
Corporate bonds and commercial paper	2,464,769		3,135		(9,554		)	2,458,350
Municipal securities	134,710		37		(525		)	134,222
U.S. agency securities	39,538		42		—			39,580
U.S. Treasury securities	1,008,195		194		(1,470		)	1,006,919
Total short-term investments	3,758,221		3,503		(11,739		)	3,749,985
Total cash, cash equivalents and short-term investments	$	4,769,536	$	3,503	$	(11,739	)	$	4,761,300

See Note 4 for further information regarding the fair value of our financial instruments.

The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months, as of June 2, 2017 and December 2, 2016 (in thousands):



	2017					2016
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds and commercial paper	$	941,981	$	(4,299	)	$	1,282,076	$	(9,474	)
Asset-backed securities	66,840		(198		)	54,063		(189		)
Municipal securities	42,601		(84		)	114,810		(525		)
U.S. Treasury and agency securities	883,711		(1,949		)	580,529		(1,470		)
Total	$	1,935,133	$	(6,530	)	$	2,031,478	$	(11,658	)

There were 775 securities and 1,052 securities in an unrealized loss position for less than twelve months at June 2, 2017 and at December 2, 2016, respectively.

The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that were in a continuous unrealized loss position for more than twelve months, as of June 2, 2017 and December 2, 2016 (in thousands):



	2017					2016
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds and commercial paper	$	4,122	$	(5	)	$	39,162	$	(80	)
Asset-backed securities	—		—			1,331		(1		)
Total	$	4,122	$	(5	)	$	40,493	$	(81	)

There were 5 securities and 23 securities in an unrealized loss position for more than twelve months at June 2, 2017 and at December 2, 2016, respectively.

The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of June 2, 2017 (in thousands):



	Amortized Cost		Estimated Fair Value
Due within one year	$	1,037,384	$	1,036,827
Due between one and two years	1,426,391		1,425,402
Due between two and three years	751,185		751,878
Due after three years	398,378		400,456
Total	$	3,613,338	$	3,614,563

We review our debt and marketable equity securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we write down these investments to fair value. For debt securities, the portion of the write-down related to credit loss would be recorded to interest and other income, net in our condensed consolidated statements of income. Any portion not related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our condensed consolidated balance sheets. For equity securities, the write-down would be recorded to investment gains (losses), net in our condensed consolidated statements of income. During the six months ended June 2, 2017 and June 3, 2016, we did not consider any of our investments to be other-than-temporarily impaired.