Fair Value Measurements and Other-Than-Temporary Impairments

Fair Value Measurements

The following tables represent the Company’s fair value hierarchy for its marketable securities measured at fair value on a recurring basis (in thousands):



	As of December 27, 2014										As of December 28, 2013
	Fair Value Measured Using										Fair Value Measured Using
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Money market funds	$	21,478	$	—		$	—	$	21,478		$	51,749	$	—		$	—	$	51,749
Certificates of deposit	—		8,060			—		8,060			—		3,840			—		3,840
Commercial paper	—		46,072			—		46,072			—		85,860			—		85,860
Corporate bonds	—		235,285			—		235,285			—		150,595			—		150,595
U.S. treasuries	14,810		—			—		14,810			4,804		—			—		4,804
Foreign currency exchange forward contracts	$	—	$	—		$	—	$	—		$	—	$	29		$	—	$	29
Total assets	$	36,288	$	289,417		$	—	$	325,705		$	56,553	$	240,324		$	—	$	296,877
Liabilities
Foreign currency exchange forward contracts	$	—	$	(64	)	$	—	$	(64	)	$	—	$	(26	)	$	—	$	(26	)

During 2014 and 2013, there were no transfers of assets or liabilities between Level 1 and Level 2 and there were no transfers into or out of Level 3 financial assets.

During 2013, the Company disposed of its remaining $3.1 million (par value) of ARS, with $0.1 million of ARS called at par value and $3.0 million of ARS tendered at 95% of par value. The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	December 29, 2012		Total Net Gains Included in Other Comprehensive Income		Calls				Sold				December 28, 2013
ARS—available-for-sale	$	2,873	$	—	$	(92	)	⁽¹⁾	$	(2,781	)	⁽²⁾	$	—


⁽¹⁾	Amount represents the fair market value of the securities called. Realized gains on these calls were not significant in 2013.


⁽²⁾	Amount represents the fair market value of the securities sold at 95% par value. Realized gains for 2013 were $0.2 million.

Investments were as follows (in thousands):



	December 27, 2014
	Adjusted Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	21,478	$	—	$	—		$	21,478
Certificates of deposit	8,060		—		—			8,060
Commercial paper	46,073		—		(1		)	46,072
Corporate bonds	235,713		2		(430		)	235,285
U.S. treasuries	14,825		1		(16		)	14,810
Total available-for-sale investments	$	326,149	$	3	$	(447	)	$	325,705



	December 28, 2013
	Adjusted Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	51,749	$	—	$	—		$	51,749
Certificates of deposit	3,840		—		—			3,840
Commercial paper	85,870		2		(12		)	85,860
Corporate bonds	150,711		27		(143		)	150,595
U.S. treasuries	4,802		2		—			4,804
Total available-for-sale investments	$	296,972	$	31	$	(155	)	$	296,848

As of December 27, 2014, the Company’s available-for-sale investments in certificates of deposit, commercial paper, corporate bonds and U.S. treasuries have a contractual maturity term of up to 18 months. Proceeds from sales, maturities and calls of available-for-sale investments were $236.5 million, $128.5 million and $129.2 million in 2014, 2013 and 2012, respectively. Gross realized gains (losses) on short-term and long-term investments were insignificant for these periods. The specific identification method is used to account for gains and losses on available-for-sale investments.

Other-Than-Temporary Impairments

As a result of the Company’s disposal of $3.1 million of ARS (par value) during 2013, it recorded an approximately $0.2 million gain, which was recognized as Other gain (loss) in the Company’s consolidated statements of operations. There were no other-than-temporary impairments during 2014.

A roll-forward of amortized cost, cumulative OTTI recognized in earnings and Accumulated other comprehensive loss is as follows (in thousands):



	Amortized Cost			Cumulative OTTI in Earnings			Unrealized Gain			OTTI Loss in Accumulated Other Comprehensive Loss			Accumulated Other Comprehensive Income (Loss)
Balance at December 29, 2012	$	2,707		$	(394	)	$	784		$	(618	)	$	166
Call on investments	(87		)	13			(25		)	20			(5		)
Investments sold	(2,620		)	381			(759		)	598			(161		)
Balance at December 28, 2013	$	—		$	—		$	—		$	—		$	—