Investments

9 Months Ended

Mar. 29, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

InvestmentsInvestments consist of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, variable rate demand notes, commercial paper and certificates of deposit. All short-term investments are classified as available-for-sale. Other long-term investments consist of the Company's ownership interest in Lextar.

Short-term investments as of March 29, 2020 and June 30, 2019 consisted of the following:

	March 29, 2020
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
Municipal bonds	$74.3	$0.7	($0.2)	$74.8
Corporate bonds	315.3	0.9	(2.2)	314.0
U.S. agency securities	21.5	0.1	—	21.6
U.S. treasury securities	68.8	0.8	—	69.6
Non-U.S. certificates of deposit	31.8	0.7	—	32.5
U.S. certificates of deposit	5.2	—	—	5.2
Variable rate demand note	2.5	—	—	2.5
Commercial paper	9.7	—	—	9.7
Total short-term investments	$529.1	$3.2	($2.4)	$529.9
	June 30, 2019
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
Municipal bonds	$78.2	$0.4	($0.1)	$78.5
Corporate bonds	256.0	1.0	—	257.0
U.S. agency securities	25.6	—	—	25.6
U.S. treasury securities	92.4	0.1	—	92.5
Non-U.S. certificates of deposit	49.1	1.1	—	50.2
U.S. certificates of deposit	22.4	—	—	22.4
Variable rate demand note	16.9	—	—	16.9
Commercial paper	7.8	—	—	7.8
Total short-term investments	$548.4	$2.6	($0.1)	$550.9

The following tables present the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position:

	March 29, 2020
	Less than 12 Months		Greater than 12 Months		Total
	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Municipal bonds	$20.6	($0.2)	$—	$—	$20.6	($0.2)
Corporate bonds	213.0	(2.2)	—	—	213.0	(2.2)
U.S. agency securities	2.0	—	—	—	2.0	—
Total	$235.6	($2.4)	$—	$—	$235.6	($2.4)
Number of securities with an unrealized loss		263		—		263
	June 30, 2019
	Less than 12 Months		Greater than 12 Months		Total
	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Municipal bonds	$4.3	$—	$29.8	($0.1)	$34.1	($0.1)
Corporate bonds	41.8	—	14.7	—	56.5	—
U.S. agency securities	7.7	—	—	—	7.7	—
U.S. treasury securities	2.0	—	3.9	—	5.9	—
Total	$55.8	$—	$48.4	($0.1)	$104.2	($0.1)
Number of securities with an unrealized loss		46		47		93

The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains of $1.2 million and $1.3 million for the three and nine month periods ended March 29, 2020 and realized losses of $0.0 million and $0.1 million for the three and nine month periods ended March 31, 2019 are included in non-operating expense in the consolidated statements of operations. Unrealized gains and losses are included as a separate component of equity, net of tax, unless the loss is determined to be other-than-temporary.

The Company evaluates its investments for possible impairment or a decline in fair value below cost basis that is deemed to be other-than-temporary on a periodic basis. It considers such factors as the length of time and extent to which the fair value has been below the cost basis, the financial condition of the investee, and its ability and intent to hold the investment for a period of time that may be sufficient for an anticipated full recovery in market value. The Company's unrealized losses as of March 29, 2020 are impacted significantly from negative market conditions surrounding the COVID-19 outbreak. Given the speed and frequency of continuously evolving developments with respect to this outbreak, the Company's believes the full extent of the outbreak is uncertain as of March 29, 2020. Due to the short-term nature of these losses and the Company's ability to satisfy current obligations using cash already on hand, which will allow the Company to hold on to the investment for a period of time that may be sufficient for an anticipated full recovery in market value, the Company does not consider the decline in its investments to be impaired as of March 29, 2020. The Company will continue to assess if ongoing developments related to the outbreak may cause these unrealized losses to become other-than-temporary.

The contractual maturities of short-term investments as of March 29, 2020 were as follows:

	Within One Year	After One, Within Five Years	After Five, Within Ten Years	After Ten Years	Total
Municipal bonds	$15.8	$59.0	$—	$—	$74.8
Corporate bonds	158.7	155.3	—	—	314.0
U.S. agency securities	10.5	11.1	—	—	21.6
U.S. treasury securities	48.6	21.0	—	—	69.6
Non-U.S. certificates of deposit	31.5	1.0	—	—	32.5
U.S. certificates of deposit	5.2	—	—	—	5.2
Variable rate demand note	—	—	—	2.5	2.5
Commercial paper	9.7	—	—	—	9.7
Total short-term investments	$280.0	$247.4	$—	$2.5	$529.9