Cash, Cash Equivalents and Investments

9 Months Ended

Sep. 29, 2018

Cash, Cash Equivalents and Investments

10.    Cash, Cash Equivalents and Investments

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

	September 29, 2018
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	15,408	$	—	$	—	$	15,408
Money market funds		5,536		—		—		5,536
U.S. treasury and agency securities		809		—		—		809
Total cash and cash equivalents	$	21,753	$	—	$	—	$	21,753
Short-term investments:
Certificates of deposit	$	5,797	$	2	$	—	$	5,799
Commercial paper		2,726		—		—		2,726
Corporate bonds and medium-term notes		3,054		—		12		3,042
Municipal bonds		499		—		2		497
U.S. treasury and agency securities		5,123		—		12		5,111
Total short-term investments	$	17,199	$	2	$	26	$	17,175
Long-term investments:
Certificates of deposit	$	500	$	—	$	—	$	500
Corporate bonds and medium-term notes		3,679		1		6		3,674
U.S. treasury and agency securities		999		—		9		990
Total long-term investments	$	5,178	$	1	$	15	$	5,164
Total cash, cash equivalents, and investments	$	44,130	$	3	$	41	$	44,092
	December 30, 2017
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	13,195	$	—	$	—	$	13,195
Money market funds		6,746		—		—		6,746
Total cash and cash equivalents	$	19,941	$	—	$	—	$	19,941
Short-term investments:
Certificates of deposit	$	2,500	$	1	$	1	$	2,500
Commercial paper		3,291		—		—		3,291
Corporate bonds and medium-term notes		4,502		—		5		4,497
Municipal bonds		500		—		3		497
U.S. treasury and agency securities		4,917		—		4		4,913
Total short-term investments	$	15,710	$	1	$	13	$	15,698
Long-term investments:
Asset backed securities	$	500	$	—	$	—	$	500
Corporate bonds and medium-term notes		4,384		—		21		4,363
U.S. treasury and agency securities		1,998		—		12		1,986
Total long-term investments	$	6,882	$	—	$	33	$	6,849
Total cash, cash equivalents, and investments	$	42,533	$	1	$	46	$	42,488

The contractual maturities of available-for-sale securities at September 29, 2018 are presented in the following table.

	September 29, 2018
	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	23,544	$	23,520
Due after one through two years		5,178		5,164
	$	28,722	$	28,684

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 September 29, 2018.

	September 29, 2018
	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)
Corporate bonds and medium-term notes	$	2,925	$	10	$	1,950	$	8
Municipal bonds		497		2		—		—
U.S. treasury and agency securities		3,018		10		2,587		11
	$	6,440	$	22	$	4,537	$	19

All prices for the fixed maturity securities including U.S. Treasury and agency securities, certificates of deposit, 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 for a security in an orderly sale. 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 September 29, 2018.

	Fair Value Measurements at September 29, 2018
	Total		Level 1		Level 2
	(In thousands)
Recurring fair value measurements:
Available-for-sale securities
Money market funds	$	5,536	$	5,536	$	—
U.S. treasury and agency securities		6,910		5,913		997
Certificates of deposit		6,299		—		6,299
Commercial paper		2,726		—		2,726
Corporate bonds and medium-term notes		6,716		—		6,716
Municipal bonds		497		—		497
Total recurring fair value measurements	$	28,684	$	11,449	$	17,235