Cash, Cash Equivalents and Investments

6 Months Ended

Jul. 02, 2022

Investments All Other Investments [Abstract]

Cash, Cash Equivalents and Investments

8. Cash, Cash Equivalents and Investments

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

	July 2, 2022
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	46,732	$	—	$	—	$	46,732
Money market funds		3,591		—		—		3,591
Commercial paper		3,348		—		2		3,346
Total cash and cash equivalents	$	53,671	$	—	$	2	$	53,669
Short-term investments:
Asset backed securities	$	1,003	$	—	$	2	$	1,001
Certificates of deposit		7,850		—		23		7,827
Commercial paper		14,586		2		37		14,551
Corporate bonds and medium-term notes		4,725		—		52		4,673
Municipal bonds		493		—		7		486
U.S. treasury securities		2,661		—		31		2,630
Total short-term investments	$	31,318	$	2	$	152	$	31,168
Long-term investments:
Asset backed securities	$	9,876	$	—	$	80	$	9,796
Corporate bonds and medium-term notes		5,204		7		32		5,179
Municipal bonds		1,212		—		9		1,203
U.S. treasury and agency securities		8,486		—		99		8,387
Total long-term investments	$	24,778	$	7	$	220	$	24,565
Total cash, cash equivalents, and investments	$	109,767	$	9	$	374	$	109,402

	January 1, 2022
	Amortized Cost		Unrealized Holding Gains		Unrealized Holding Losses		Fair Value
	(In thousands)
Cash and cash equivalents:
Cash	$	102,494	$	—	$	—	$	102,494
Money market funds		234		—		—		234
Total cash and cash equivalents	$	102,728	$	—	$	—	$	102,728
Short-term investments:
Certificates of deposit	$	4,300	$	—	$	—	$	4,300
Commercial paper		400		—		—		400
Corporate bonds and medium-term notes		2,916		—		3		2,913
Municipal bonds		700		—		—		700
U.S. treasury securities		1,910		—		2		1,908
Total short-term investments	$	10,226	$	—	$	5	$	10,221
Long-term investments:
Asset backed securities	$	2,040	$	—	$	3	$	2,037
Certificates of deposit		500		—		3		497
Corporate bonds and medium-term notes		1,521		—		6		1,515
Municipal bonds		145		—		1		144
U.S. treasury securities		3,246		—		12		3,234
Total long-term investments	$	7,452	$	—	$	25	$	7,427
Total cash, cash equivalents, and investments	$	120,406	$	—	$	30	$	120,376

The contractual maturities of investment securities at July 2, 2022 are presented in the following table.

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	38,257	$	38,105
Due after one through five years		24,778		24,565
	$	63,035	$	62,670

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, 2022.

	July 2, 2022
	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)
Asset backed securities	$	10,180	$	82	$	—	$	—
Certificates of deposit		6,827		23		—		—
Commercial paper		15,932		39		—		—
Corporate bonds and medium-term notes		8,345		80		500		4
Municipal bonds		1,698		16		—		—
U.S. treasury and agency securities		11,017		130		—		—
	$	53,990	$	370	$	500	$	4

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 if a security were sold 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 investment securities measured at fair value on a recurring basis as of July 2, 2022.

	Fair Value Measurements at July 2, 2022
	Total		Level 1		Level 2
	(In thousands)
Recurring fair value measurements:
Investment securities
Money market funds	$	3,591	$	3,591	$	—
U.S. treasury and agency securities		11,017		7,521		3,496
Asset backed securities		10,797		—		10,797
Certificates of deposit		7,827		—		7,827
Commercial paper		17,897		—		17,897
Corporate bonds and medium-term notes		9,852		—		9,852
Municipal bonds		1,689		—		1,689
Total recurring fair value measurements	$	62,670	$	11,112	$	51,558