Financial Instruments

12 Months Ended

Dec. 28, 2019

Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract]

9. Financial Instruments

Cash, Cash Equivalents and Investments

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


	December 28, 2019
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(in thousands)
Cash and cash equivalents:
Cash	$	16,512	$	—	$	—	$	16,512
Money market funds		3,255		—		—		3,255

Total cash and cash equivalents	$	19,767	$	—	$	—	$	19,767
Short-term investments:
Certificates of deposit	$	3,000	$	1	$	—	$	3,001
Commercial paper		1,891		2		—		1,893
Corporate bonds and medium-term notes		6,383		25		—		6,408
U.S. treasury and agency securities		5,417		1		—		5,418

Total short-term investments	$	16,691	$	29	$	—	$	16,720
Long-term investments:
Certificates of deposit	$	499	$	1	$	—	$	500
Corporate bonds and medium-term notes		2,530		12		—		2,542
U.S. treasury and agency securities		2,494		1		—		2,495

Total long-term investments	$	5,523	$	14	$	—	$	5,537

Total cash, cash equivalents, and investments	$	41,981	$	43	$	—	$	42,024



	December 29, 2018
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(in thousands)
Cash and cash equivalents:
Cash	$	13,334	$	—	$	—	$	13,334
Money market funds		3,335		—		—		3,335
U.S. treasury and agency securities		2,046		—		—		2,046

Total cash and cash equivalents	$	18,715	$	—	$	—	$	18,715
Short-term investments:
Certificates of deposit	$	5,299	$	1	$	1	$	5,299
Commercial paper		2,242		—		1		2,241
Corporate bonds and medium-term notes		4,759		—		13		4,746
Municipal bonds		500		—		2		498
U.S. treasury and agency securities		3,297		—		5		3,292

Total short-term investments	$	16,097	$	1	$	22	$	16,076
Long-term investments:
Certificates of deposit	$	500	$	—	$	—	$	500
Corporate bonds and medium-term notes		2,879		4		4		2,879
U.S. treasury and agency securities		999		—		6		993

Total long-term investments	$	4,378	$	4	$	10	$	4,372

Total cash, cash equivalents, and investments	$	39,190	$	5	$	32	$	39,163

The contractual maturities of

available-for-sale

securities at December 28, 2019 are presented in the following table.


	Amortized Cost		Fair Value
	(in thousands)
Due in one year or less	$	19,946	$	19,975
Due after one through five years		5,523		5,537

	$	25,469	$	25,512

All prices for the fixed maturity securities including U.S. treasury and agency securities, certificates of deposit, commercial paper, corporate bonds, asset backed securities 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 December 28, 2019.


	Fair Value Measurements at December 28, 2019
	Total		Level 1		Level 2
	(in thousands)
Recurring fair value measurements:
Available-for-sale securities
Money market funds	$	3,255	$	3,255	$	—
U.S. treasury and agency securities		7,913		7,913		—
Certificates of deposit		3,501		—		3,501
Commercial paper		1,893		—		1,893
Corporate bonds and medium-term notes		8,950		—		8,950

Total recurring fair value measurements	$	25,512	$	11,168	$	14,344

Derivatives

The Company uses foreign currency forward contracts to mitigate variability in gains and losses generated from the

re-measurement

of certain monetary assets and liabilities denominated in foreign currencies and to offset certain operational exposures from the impact of changes in foreign currency exchange rates. These derivatives are carried at fair value with changes recorded in interest income and other, net in the consolidated statements of income. Changes in the fair value of these derivatives are largely offset by

re-measurement

of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately 30 days.

The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its consolidated balance sheets as of December 28, 2019 and December 29, 2018:


	Notional Amounts				Derivative Liabilities
Derivative Instrument	December 28, 2019		December 29, 2018		December 28, 2019				December 29, 2018
					Balance Sheet Line		Fair Value		Balance Sheet Line		Fair Value
	(In thousands)
Undesignated Hedges:
Forward Foreign Currency Contracts	$	1,035		1,764		*	$	4		*	$	8

Total Hedges	$	1,035		1,764			$	4			$	8

*	Other accrued liabilities