XML 32 R16.htm IDEA: XBRL DOCUMENT

Note 5 - Financial Instruments Measured at Fair Value

12 Months Ended

Dec. 28, 2024

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

5.	Financial Instruments Measured at Fair Value

Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. We do not hold investment securities for trading purposes. All short-term investments in debt securities are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk and we monitor credit risk and attempt to mitigate exposure by making high-quality investments and through investment diversification.

We assess whether unrealized loss positions on available-for-sale debt securities are due to credit-related factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in earnings through an allowance account. Unrealized gains and losses that are not due to credit-related factors are included in accumulated other comprehensive income (loss). Factors that could indicate an impairment exists include, but are not limited to earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. Gross realized gains and losses on sales of short-term investments are included in interest income. Realized gains and losses for the periods presented were not significant.

Investments that we have classified as short-term, by security type, are as follows (in thousands):

	At December 28, 2024
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses ⁽¹⁾		Value
Corporate debt securities ⁽²⁾	$	32,040	$	37	$	25	$	32,052
U.S. treasury securities		11,964		12		15		11,961
Bank certificates of deposit		6,971		4		3		6,972
Asset-backed securities		3,647		6		-		3,653
Foreign government security		714		-		-		714
Municipal securities		330		3		-		333
	$	55,666	$	62	$	43	$	55,685

	At December 30, 2023
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses ⁽¹⁾		Value
Corporate debt securities ⁽²⁾	$	45,105	$	147	$	15	$	45,237
U.S. treasury securities		20,439		26		116		20,349
Bank certificates of deposit		15,468		20		-		15,488
Asset-backed securities		8,017		17		10		8,024
Foreign government security		741		-		-		741
Municipal securities		330		5		-		335
	$	90,100	$	215	$	141	$	90,174

(1)

As of December 28, 2024, the cost and fair value of investments with loss positions were approximately $20.5 million and $20.4 million, respectively. As of December 30, 2023, the cost and fair value of investments with loss positions was approximately $38.5 million and $38.4 million, respectively. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.

(2)

Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Effective maturities of short-term investments at December 28, 2024, were as follows:

	Amortized		Estimated
(in thousands)	Cost		Fair Value
Due in 1 year or less	$	47,819	$	47,855
Due after 1 year through 5 years		7,847		7,830
	$	55,666	$	55,685

Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. When available, we use quoted market prices to determine the fair value of our investments, and they are included in Level 1. When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information.

The following table summarizes, by major security type, our financial instruments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):

	Fair value measurements at December 28, 2024 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	136,965	$	-	$	-	$	136,965
Money market funds		-		69,442		-		69,442
Corporate debt securities		-		32,052		-		32,052
U.S. treasury securities		-		11,961		-		11,961
Bank certificates of deposit		-		6,972		-		6,972
Asset-backed securities		-		3,653		-		3,653
Foreign government security		-		714		-		714
Municipal securities		-		333		-		333
	$	136,965	$	125,127	$	-	$	262,092

	Fair value measurements at December 30, 2023 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	157,697	$	-	$	-	$	157,697
Money market funds		-		81,115		-		81,115
Corporate debt securities		-		51,949		-		51,949
U.S. treasury securities		-		20,349		-		20,349
Bank certificates of deposit		-		15,488		-		15,488
Asset-backed securities		-		8,024		-		8,024
Municipal securities		-		335		-		335
Foreign government security		-		741		-		741
	$	157,697	$	178,001	$	-	$	335,698