Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 28, 2019

Fair Value of Financial Instruments

Summary of valuation of the financial instruments

The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value.

	Fair Value Measurements
	at December 28, 2019 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	92,379	$	—	$	—	$	92,379
Corporate debt securities		—		1,325		—		1,325
Total cash equivalents	$	92,379	$	1,325	$	—	$	93,704
Short-term investments:
Government debt securities	$	85,189	$	86,682	$	—	$	171,871
Corporate debt securities		—		326,954		—		326,954
Total short-term investments	$	85,189	$	413,636	$	—	$	498,825
Other assets, net:
Auction rate securities	$	—	$	—	$	5,647	$	5,647
Total	$	—	$	—	$	5,647	$	5,647
Total	$	177,568	$	414,961	$	5,647	$	598,176

4. Fair Value of Financial Instruments (Continued)

	Fair Value Measurements
	at December 29, 2018 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	74,990	$	—	$	—	$	74,990
Corporate debt securities		—		18,820		—		18,820
Government debt securities		9,338		—		—		9,338
Total cash equivalents	$	84,328	$	18,820	$	—	$	103,148
Short-term investments:
Government debt securities	$	48,141	$	99,211	$	—	$	147,352
Corporate debt securities		—		269,427		—		269,427
Total short-term investments	$	48,141	$	368,638	$	—	$	416,779
Other assets, net:
Auction rate securities	$	—	$	—	$	5,759	$	5,759
Total	$	—	$	—	$	5,759	$	5,759
Total	$	132,469	$	387,458	$	5,759	$	525,686

Schedule of maturities of the Company's available-for-sale investments

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at December 28, 2019 (in thousands):

			Fair
	Cost		Value
Due in one year or less	$	381,583	$	382,259
Due after one year through ten years		196,702		197,370
Due after ten years		18,900		18,547
	$	597,185	$	598,176

Schedule of available-for-sale investments in continuous unrealized loss position by length of time

4. Fair Value of Financial Instruments (Continued)

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
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 28, 2019	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	11,947	$	(19)	$	7,183	$	(7)	$	19,130	$	(26)
Corporate debt securities		68,116		(81)		20		—		68,136		(81)
Auction rate securities		—		—		5,647		(353)		5,647		(353)
	$	80,063	$	(100)	$	12,850	$	(360)	$	92,913	$	(460)

	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 29, 2018	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	13,278	$	(10)	$	88,696	$	(583)	$	101,974	$	(593)
Corporate debt securities		112,699		(273)		76,310		(448)		189,009		(721)
Auction rate securities		—		—		5,759		(241)		5,759		(241)
	$	125,977	$	(283)	$	170,765	$	(1,272)	$	296,742	$	(1,555)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities

Fair Value at
December 28, 2019				Weighted
(000s)		Valuation Technique	Unobservable Input	Average
$	5,647	Discounted cash flow	Estimated yield	3.49	%
			Expected holding period	10 years
			Estimated discount rate	3.03	%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the years ended December 28, 2019 and December 29, 2018 (in thousands):

Assets

	Year Ended
	December 28,		December 29,
Auction Rate Securities	2019		2018
Beginning balance	$	5,759	$	5,681
Gain (loss) included in other comprehensive income (loss)		(112)		78
Ending balance	$	5,647	$	5,759