Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Mar. 27, 2020

Cash, cash equivalents and short-term investments

5. Cash, cash equivalents and short-term investments

The Company’s cash, cash equivalents, and short-term investments by category is as follows:

						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain/(Loss)			Cash and Cash Equivalents		Marketable Securities		Other Investments
As of March 27, 2020
Cash	$	202,610	$	—		$	202,610	$	—	$	—
Cash equivalents		21,528		—			21,528		—		—
Liquidity funds		20,954		—			—		—		20,954
Certificates of deposit and time deposits		20,000		—			—		—		20,000
Corporate debt securities		132,877		(1,439	)		—		131,438		—
U.S. agency and U.S. Treasury securities		60,497		733			—		61,230		—
Total	$	458,466	$	(706	)	$	224,138	$	192,668	$	40,954
As of June 28, 2019
Cash	$	178,019	$	—		$	178,019	$	—	$	—
Cash equivalents		2,820		—			2,820		—		—
Liquidity funds		20,552		—			—		—		20,552
Certificates of deposit and time deposits		35,028		—			—		—		35,028
Corporate debt securities		130,959		297			—		131,256		—
U.S. agency and U.S. Treasury securities		69,552		105			—		69,657		—
Total	$	436,930	$	402		$	180,839	$	200,913	$	55,580

All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The Company may sell certain of its short-term investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s short-term investments generally range from three months to three years. The Company’s short-term investments consist of U.S. Treasuries and fixed income securities and have been classified and accounted for as available-for-sale.

The following table summarizes the cost and estimated fair value of short-term investments classified as available-for-sale securities based on stated effective maturities as of March 27, 2020:

	March 27, 2020				June 28, 2019
(amount in thousands)	Carrying Cost		Fair Value		Carrying Cost		Fair Value
Due within one year	$	30,448	$	30,472	$	69,746	$	69,830
Due between one to five years		162,926		162,196		130,765		131,083
Total	$	193,374	$	192,668	$	200,511	$	200,913

During the nine months ended March 27, 2020, the Company recognized a realized gain of $0.1 million from sales and maturities of available-for-sale securities.

As of March 27, 2020, the Company considered the decline in market value of its short-term investments portfolio to be temporary in nature and did not consider any of its securities other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. No impairment losses were recorded for the nine months ended March 27, 2020.