Cash, Cash Equivalents and Investments

6 Months Ended

Jul. 03, 2021

Investments Debt And Equity Securities [Abstract]

Cash, Cash Equivalents and Investments

7. Cash, Cash Equivalents and Investments

Cash and cash equivalents, short-term investments and long-term investments consist of:

	July 3, 2021
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	28,477	$	—	$	—	$	28,477
Money market funds		4,379		—		—		4,379
Total cash and cash equivalents	$	32,856	$	—	$	—	$	32,856
Short-term investments:
Certificates of deposit	$	7,550	$	3	$	—	$	7,553
Corporate bonds and medium-term notes		4,505		2		—		4,507
Municipal bonds		740		—		—		740
U.S. treasury and agency securities		2,999		6		—		3,005
Total short-term investments	$	15,794	$	11	$	—	$	15,805
Long-term investments:
Certificates of deposit	$	500	$	—	$	1	$	499
Corporate bonds and medium-term notes		2,020		—		1		2,019
U.S. treasury and agency securities		2,161		1		1		2,161
Total long-term investments	$	4,681	$	1	$	3	$	4,679
Total cash, cash equivalents, and investments	$	53,331	$	12	$	3	$	53,340
	January 2, 2021
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	24,729	$	—	$	—	$	24,729
Money market funds		3,612		—		—		3,612
Certificates of deposit		1,000		—		—		1,000
Total cash and cash equivalents	$	29,341	$	—	$	—	$	29,341
Short-term investments:
Certificates of deposit	$	6,450	$	2	$	—	$	6,452
Commercial paper		500		—		—		500
Corporate bonds and medium-term notes		2,929		6		—		2,935
Municipal bonds		400		—		—		400
U.S. treasury and agency securities		4,527		25		—		4,552
Total short-term investments	$	14,806	$	33	$	—	$	14,839
Long-term investments:
Certificates of deposit	$	500	$	—	$	—	$	500
Corporate bonds and medium-term notes		3,474		4		—		3,478
U.S. treasury and agency securities		1,409		1		—		1,410
Total long-term investments	$	5,383	$	5	$	—	$	5,388
Total cash, cash equivalents, and investments	$	49,530	$	38	$	—	$	49,568

The contractual maturities of available-for-sale securities at July 3, 2021 are presented in the following table.

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	20,173	$	20,184
Due after one through five years		4,681		4,679
	$	24,854	$	24,863

The following table provides the fair market value of Intevac’s investments with unrealized losses that are not deemed to be other-than temporarily impaired as of July 3, 2021.

	July 3, 2021
	In Loss Position for Less than 12 Months				In Loss Position for Greater than 12 Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(In thousands)
Certificates of deposit	$	999	$	1	$	—	$	—
Corporate bonds and medium-term notes		3,085		1		—		—
U.S. treasury and agency securities		751		1		—		—
	$	4,835	$	3	$	—	$	—

All prices for the fixed maturity securities including U.S. treasury and agency securities, certificates of deposit, commercial paper, corporate bonds, asset backed securities and municipal bonds are received from independent pricing services utilized by Intevac’s outside investment manager. This investment manager performs a review of the pricing methodologies and inputs utilized by the independent pricing services for each asset type priced by the vendor. In addition, on at least an annual basis, the investment manager conducts due diligence visits and interviews with each pricing vendor to verify the inputs utilized for each asset class. The due diligence visits include a review of the procedures performed by each vendor to ensure that pricing evaluations are representative of the price that would be received if a security were to be sold in an orderly transaction. Any pricing where the input is based solely on a broker price is deemed to be a Level 3 price. Intevac uses the pricing data obtained from its outside investment manager as the primary input to make its assessments and determinations as to the ultimate valuation of the above-mentioned securities and has not made, during the periods presented, any material adjustments to such inputs.

The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of July 3, 2021.

	Fair Value Measurements at July 3, 2021
	Total		Level 1		Level 2
	(In thousands)
Recurring fair value measurements:
Available-for-sale securities
Money market funds	$	4,379	$	4,379	$	—
U.S. treasury and agency securities		5,166		5,166		—
Certificates of deposit		8,052		—		8,052
Corporate bonds and medium-term notes		6,526		—		6,526
Municipal bonds		740		—		740
Total recurring fair value measurements	$	24,863	$	9,545	$	15,318