Cash, Cash Equivalents and Investments

3 Months Ended

Mar. 29, 2014

Cash, Cash Equivalents and Investments

9. Cash, Cash Equivalents and Investments

Cash and cash equivalents, short-term investments and long-term investments consist of:

	March 29, 2014
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	5,963	$	—	$	—	$	5,963
Money market funds		21,374		—		—		21,374
Total cash and cash equivalents	$	27,337	$	—	$	—	$	27,337
Short-term investments:
Commercial paper	$	1,999	$	1	$	—	$	2,000
Corporate bonds and medium-term notes		23,854		20		—		23,874
Municipal bonds		6,146		7		—		6,153
U.S. treasury and agency securities		8,004		6		—		8,010
Total short-term investments	$	40,003	$	34	$	—	$	40,037
Long-term investments:
Corporate bonds and medium-term notes	$	2,230	$	1	$	—	$	2,231
Municipal bonds		2,428		2		—		2,430
U.S. treasury and agency securities		2,996		2		—		2,998
Total long-term investments	$	7,654	$	5	$	—	$	7,659
Total cash, cash equivalents, and investments	$	74,994	$	39	$	—	$	75,033

	December 31, 2013
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	5,819	$	—	$	—	$	5,819
Money market funds		14,302		—		—		14,302
Total cash and cash equivalents	$	20,121	$	—	$	—	$	20,121
Short-term investments:
Commercial paper	$	1,998	$	1	$	—	$	1,999
Corporate bonds and medium-term notes		27,181		13		3		27,191
Municipal bonds		6,108		4		—		6,112
U.S. treasury and agency securities		13,506		7		—		13,513
Variable rate demand notes (“VRDNs”)		160		—		—		160
Total short-term investments	$	48,953	$	25	$	3	$	48,975
Long-term investments:
Corporate bonds and medium-term notes	$	8,811	$	12	$	—	$	8,823
Municipal bonds		3,495		2		2		3,495
Total long-term investments	$	12,306	$	14	$	2	$	12,318
Total cash, cash equivalents, and investments	$	81,380	$	39	$	5	$	81,414

The contractual maturities of available-for-sale securities at March 29, 2014 are presented in the following table.

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	60,378	$	60,408
Due after one through two years		8,653		8,662
	$	69,031	$	69,070

All prices for the fixed maturity securities including U.S. Treasury and agency securities, commercial paper, corporate bonds, VRDNs and municipal bonds are received from independent pricing services utilized by Intevac’s outside investment manager. This investment manager performs a review of the pricing methodologies and inputs utilized by the independent pricing services for each asset type priced by the vendor. In addition, on at least an annual basis, the investment manager conducts due diligence visits and interviews with each pricing vendor to verify the inputs utilized for each asset class. The due diligence visits include a review of the procedures performed by each vendor to ensure that pricing evaluations are representative of the price that would be received to sell a security in an orderly transaction. Any pricing where the input is based solely on a broker price is deemed to be a Level 3 price. Intevac uses the pricing data obtained from its outside investment manager as the primary input to make its assessments and determinations as to the ultimate valuation of the above-mentioned securities and has not made, during the periods presented, any material adjustments to such inputs.

The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of March 29, 2014.

	Fair Value Measurements at March 29, 2014
	Total		Level 1		Level 2
	(In thousands)
Recurring fair value measurements:
Available-for-sale securities
Money market funds	$	21,374	$	21,374	$	—
U.S. treasury and agency securities		11,008		6,002		5,006
Commercial paper		2,000		—		2,000
Corporate bonds and medium-term notes		26,105		—		26,105
Municipal bonds		8,583		—		8,583
Total recurring fair value measurements	$	69,070	$	27,376	$	41,694