Cash, Cash Equivalents and Investments

6 Months Ended

Jul. 02, 2016

Cash, Cash Equivalents and Investments

9. Cash, Cash Equivalents and Investments

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

	July 2, 2016
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	9,442	$	—	$	—	$	9,442
Money market funds		9,291		—		—		9,291
Total cash and cash equivalents	$	18,733	$	—	$	—	$	18,733
Short-term investments:
Commercial paper	$	1,091	$	—	$	1	$	1,090
Corporate bonds and medium-term notes		6,651		3		1		6,653
Municipal bonds		3,135		1		—		3,136
U.S. treasury and agency securities		5,773		4		1		5,776
Total short-term investments	$	16,650	$	8	$	3	$	16,655
Long-term investments:
Corporate bonds and medium-term notes	$	5,214	$	12	$	—	$	5,226
Total long-term investments	$	5,214	$	12	$	—	$	5,226
Total cash, cash equivalents, and investments	$	40,597	$	20	$	3	$	40,614

	January 2, 2016
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	6,208	$	—	$	—	$	6,208
Money market funds		7,538		—		—		7,538
Total cash and cash equivalents	$	13,746	$	—	$	—	$	13,746
Short-term investments:
Corporate bonds and medium-term notes	$	9,978	$	—	$	7	$	9,971
Municipal bonds		4,238		—		—		4,238
U.S. treasury and agency securities		8,999		—		—		8,999
Total short-term investments	$	23,215	$	—	$	7	$	23,208
Long-term investments:
Corporate bonds and medium-term notes	$	6,212	$	—	$	23	$	6,189
U.S. treasury and agency securities		3,494		—		10		3,484
Total long-term investments	$	9,706	$	—	$	33	$	9,673
Total cash, cash equivalents, and investments	$	46,667	$	—	$	40	$	46,627

The contractual maturities of available-for-sale securities at July 2, 2016 are presented in the following table.

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	25,941	$	25,946
Due after one through two years		5,214		5,226
	$	31,155	$	31,172

The following table provides the fair market value of Intevac’s investments with unrealized losses that are not deemed to be other-than temporarily impaired as of July 2, 2016.

	July 2, 2016
	In Loss Position for Less than 12 Months				In Loss Position for Greater than 12 Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(In thousands)
Commercial paper	$	1,090	$	1	$	—	$	—
Corporate bonds and medium-term notes		3,214		1		—		—
U.S. treasury and agency securities		1,271		1		—		—
	$	5,575	$	3	$	—	$	—

All prices for the fixed maturity securities including U.S. Treasury and agency securities, commercial paper, corporate bonds 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 July 2, 2016.

	Fair Value Measurements at July 2, 2016
	Total		Level 1		Level 2
	(In thousands)
Recurring fair value measurements:
Available-for-sale securities
Money market funds	$	9,291	$	9,291	$	—
U.S. treasury and agency securities		5,776		3,501		2,275
Commercial paper		1,090		—		1,090
Corporate bonds and medium-term notes		11,879		—		11,879
Municipal bonds		3,136		—		3,136
Total recurring fair value measurements	$	31,172	$	12,792	$	18,380