4. Cash, Cash Equivalents and Investments

The Company's cash equivalents and short-term investments as of January 3, 2015 consisted of municipal bonds, money market funds, corporate bonds, commercial paper, variable-rate demand notes, certificates of deposit, asset-backed securities, international government bonds, U.S. government agency and U.S. government bonds. The Company's long-term investments consisted of auction-rate securities. In fiscal 2008, auctions for many of the Company's auction-rate securities failed because sell orders exceeded buy orders. As of January 3, 2015, the Company held $8.0 million par value auction-rate securities, all of which have experienced failed auctions. The underlying assets of the securities consisted of student loans and municipal bonds, of which $6.0 million were guaranteed by the U.S. government and the remaining $2.0 million were privately insured. As of January 3, 2015, $6.0 million of the auction-rate securities had credit ratings of AA and $2.0 million had a credit rating of A. These securities have contractual maturity dates ranging from 2033 to 2046 at January 3, 2015. The Company is receiving the underlying cash flows on all of its auction-rate securities. The principal amounts associated with failed auctions are not expected to be accessible until a successful auction occurs, the issuer redeems the securities, a buyer is found outside of the auction process or the underlying securities mature. The Company is unable to predict if these funds will become available before their maturity dates.

The Company does not expect to need access to the capital represented by any of its auction-rate securities prior to their maturities. The Company does not intend to sell, and believes it is not more likely than not that it will be required to sell, its auction-rate securities before their anticipated recovery in market value or final settlement at the underlying par value. The Company believes that the credit ratings and credit support of the security issuers indicate that they have the ability to settle the securities at par value. As such, the Company has determined that no other-than-temporary impairment losses existed as of January 3, 2015.

The Company's cash, cash equivalents and investments consisted of the following (in thousands):

	January 3, 2015
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	52,144	$	—		$	—	$	52,144
Available-for-sale securities:
Money market funds		71,415		—			—		71,415
Certificates of deposit		7,739		—			—		7,739
Commercial paper		5,348		—			—		5,348
Municipal bonds		1,756		—			1		1,757
U.S. government agency		1,202		—			—		1,202
Corporate bonds		1,101		—			—		1,101
U.S. government bonds		1,000		—			—		1,000

Total available-for-sale securities		89,561		—			1		89,562

Total cash and cash equivalents	$	141,705	$	—		$	1	$	141,706


Short-term Investments:
Available-for-sale securities:
Municipal bonds	$	129,005	$	(25	)	$	172	$	129,152
Corporate bonds		33,043		(35	)		25		33,033
Variable-rate demand notes		12,915		—			—		12,915
Commercial paper		8,995		—			—		8,995
Asset-backed securities		5,380		(3	)		—		5,377
International government bonds		2,526		(10	)		—		2,516
U.S. government bonds		650		—			—		650
U.S. government agency		601		—			—		601
Certificates of deposit		250		—			—		250

Total short-term investments	$	193,365	$	(73	)	$	197	$	193,489


Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	8,000	$	(581	)	$	—	$	7,419

Total long-term investments	$	8,000	$	(581	)	$	—	$	7,419

	December 28, 2013
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	45,544	$	—		$	—	$	45,544
Available-for-sale securities:
Money market funds		39,538		—			—		39,538
Certificates of deposit		7,768		—			—		7,768
Commercial paper		2,499		—			—		2,499
Municipal bonds		451		—			—		451

Total available-for-sale securities		50,256		—			—		50,256

Total cash and cash equivalents	$	95,800	$	—		$	—	$	95,800


Short-term Investments:
Available-for-sale securities:
Municipal bonds	$	119,289	$	(11	)	$	182	$	119,460
Variable-rate demand notes		38,025		—			—		38,025
Corporate bonds		17,788		(4	)		60		17,844
Commercial paper		3,748		—			—		3,748
Asset-backed securities		515		—			1		516

Total short-term investments	$	179,365	$	(15	)	$	243	$	179,593


Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	12,425	$	(1,793	)	$	—	$	10,632

Total long-term investments	$	12,425	$	(1,793	)	$	—	$	10,632

The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
As of January 3, 2015	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	23,735	$	(25	)	$	—	$	—		$	23,735	$	(25	)
Corporate bonds		20,327		(35	)		—		—			20,327		(35	)
Auction rate securities		—		—			7,419		(581	)		7,419		(581	)
Asset-backed securities		5,080		(3	)		—		—			5,080		(3	)
International government bond		2,516		(10	)		—		—			2,516		(10	)

	$	51,658	$	(73	)	$	7,419	$	(581	)	$	59,077	$	(654	)

	Less Than 12 Months					12 Months or Greater					Total
As of December 28, 2013	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	11,079	$	(11	)	$	—	$	—		$	11,079	$	(11	)
Auction rate securities		—		—			10,632		(1,793	)		10,632		(1,793	)
Corporate bonds		2,605		(4	)		—		—			2,605		(4	)

	$	13,684	$	(15	)	$	10,632	$	(1,793	)	$	24,316	$	(1,808	)

The gross unrealized losses as of January 3, 2015 and December 28, 2013 were due primarily to the illiquidity of the Company's auction-rate securities and, to a lesser extent, to changes in market interest rates.

The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at January 3, 2015 (in thousands):

	Cost		Fair Value
Due in one year or less	$	208,047	$	208,166
Due after one year through ten years		62,464		62,470
Due after ten years		20,415		19,834

	$	290,926	$	290,470