Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 04, 2020

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 April 4, 2020 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	$	167,636	$	—	$	—	$	167,636
Corporate debt securities		—		5,847		—		5,847
Total cash equivalents	$	167,636	$	5,847	$	—	$	173,483
Short-term investments:
Government debt securities	$	85,519	$	52,852	$	—	$	138,371
Corporate debt securities		—		304,122		—		304,122
Total short-term investments	$	85,519	$	356,974	$	—	$	442,493
Other assets, net:
Auction rate securities	$	—	$	—	$	5,400	$	5,400
Total	$	—	$	—	$	5,400	$	5,400
Total	$	253,155	$	362,821	$	5,400	$	621,376

	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

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

			Fair
	Cost		Value
Due in one year or less	$	414,159	$	414,699
Due after one year through ten years		200,796		201,277
Due after ten years		6,000		5,400
	$	620,955	$	621,376

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

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 April 4, 2020	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	5,428	$	(13)	$	—	$	—	$	5,428	$	(13)
Corporate debt securities		164,259		(967)		—		—		164,259		(967)
Auction rate securities		—		—		5,400		(600)		5,400		(600)
	$	169,687	$	(980)	$	5,400	$	(600)	$	175,087	$	(1,580)

	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)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities

Fair Value at
April 4, 2020
(000s)		Valuation Technique	Unobservable Input	Weighted Average
$	5,400	Discounted cash flow	Estimated yield	2.85%
			Expected holding period	10 years
			Estimated discount rate	3.28%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the three months ended April 4, 2020 (in thousands):

Assets

	Three Months
Auction Rate Securities	Ended
Beginning balance	$	5,647
Loss included in other comprehensive income (loss)		(247)
Balance at April 4, 2020	$	5,400