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Cash, Cash Equivalents and Investments
 12 Months Ended
Jan. 02, 2016
Cash, Cash Equivalents and Investments  
Cash, Cash Equivalents and Investments

4. Cash, Cash Equivalents and Investments

        The Company's cash equivalents and short-term investments as of January 2, 2016 consisted of municipal bonds, money market funds, commercial paper, certificates of deposit, variable-rate demand notes, U.S. government agency, international government bonds and corporate bonds. The Company's long-term investments consisted of auction-rate securities. In fiscal 2008, auctions for many of the Company's auction-rate securities failed because sell orders exceeded buy orders. As of January 2, 2016, the Company held $8.0 million par value auction-rate securities, all of which have experienced failed auctions. The underlying assets of the securities consisted of student loans and municipal bonds, of which $6.0 million were guaranteed by the U.S. government and the remaining $2.0 million were privately insured. As of January 2, 2016, $6.0 million of the auction-rate securities had credit ratings of AA and $2.0 million had a credit rating of A. These securities have contractual maturity dates ranging from 2033 to 2046 at January 2, 2016. The Company is receiving the underlying cash flows on all of its auction-rate securities. The principal amounts associated with failed auctions are not expected to be accessible until a successful auction occurs, the issuer redeems the securities, a buyer is found outside of the auction process or the underlying securities mature. The Company is unable to predict if these funds will become available before their maturity dates.

        The Company does not expect to need access to the capital represented by any of its auction-rate securities prior to their maturities. The Company does not intend to sell, and believes it is not more likely than not that it will be required to sell, its auction-rate securities before their anticipated recovery in market value or final settlement at the underlying par value. The Company believes that the credit ratings and credit support of the security issuers indicate that they have the ability to settle the securities at par value. As such, the Company has determined that no other-than-temporary impairment losses existed as of January 2, 2016.

        The Company's cash, cash equivalents and investments consisted of the following (in thousands):

 
   January 2, 2016  
 
   Cost   Gross
Unrealized
Losses		   Gross
Unrealized
Gains		   Fair Value  

Cash and Cash Equivalents:

                          

Cash on hand

   $ 59,071   $ —   $ —   $ 59,071  

Available-for-sale securities:

                 —        

Money market funds

     37,721     —     —     37,721  

Commercial Paper

     11,272     —     —     11,272  

Certificates of deposit

     2,845     —     —     2,845  

U.S. government agency

     1,599     —     —     1,599  

Municipal bond

     1,576     —     1     1,577  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total available-for-sale securities

     55,013     —     1     55,014  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total cash and cash equivalents

  
$
114,084		  
$
—		  
$
1		  
$
114,085		  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Short-term Investments:

    
 		    
 		    
 		    
 		  

Available-for-sale securities:

                          

Municipal bonds

   $ 93,506   $ (32 ) $ 42   $ 93,516  

Commercial Paper

     11,176     —     —     11,176  

Variable-rate demand notes

     8,995     —     —     8,995  

Certificates of deposit

     8,000     —     —     8,000  

U.S. government agency

     3,997     —     1     3,998  

International government bonds

     2,227     (7 )   —     2,220  

Corporate bonds

     999     (3 )   —     996  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total short-term investments

   $ 128,900   $ (42 ) $ 43   $ 128,901  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Long-term Investments:

    
 		    
 		    
 		    
 		  

Available-for-sale securities:

                          

Auction rate securities

   $ 8,000   $ (874 ) $ —   $ 7,126  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total long-term investments

   $ 8,000   $ (874 ) $ —   $ 7,126  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​


 

 
   January 3, 2015  
 
   Cost   Gross
Unrealized
Losses		   Gross
Unrealized
Gains		   Fair Value  

Cash and Cash Equivalents:

                          

Cash on hand

   $ 52,144   $ —   $ —   $ 52,144  

Available-for-sale securities:

                          

Money market funds

     71,415     —     —     71,415  

Certificates of deposit

     7,739     —     —     7,739  

Commercial paper

     5,348     —     —     5,348  

Municipal bonds

     1,756     —     1     1,757  

U.S. government agency

     1,202     —     —     1,202  

Corporate bonds

     1,101     —     —     1,101  

U.S. government bonds

     1,000     —     —     1,000  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total available-for-sale securities

     89,561     —     1     89,562  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total cash and cash equivalents

  
$
141,705		  
$
—		  
$
1		  
$
141,706		  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Short-term Investments:

    
 		    
 		    
 		    
 		  

Available-for-sale securities:

                          

Municipal bonds

   $ 129,005   $ (25 ) $ 172   $ 129,152  

Corporate bonds

     33,043     (35 )   25     33,033  

Variable-rate demand notes

     12,915     —     —     12,915  

Commercial paper

     8,995     —     —     8,995  

Asset-backed securities

     5,380     (3 )   —     5,377  

International government bonds

     2,526     (10 )   —     2,516  

U.S. government bonds

     650     —     —     650  

U.S. government agency

     601     —     —     601  

Certificates of deposit

     250     —     —     250  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total short-term investments

   $ 193,365   $ (73 ) $ 197   $ 193,489  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Long-term Investments:

    
 		    
 		    
 		    
 		  

Available-for-sale securities:

                          

Auction rate securities

   $ 8,000   $ (581 ) $ —   $ 7,419  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total long-term investments

   $ 8,000   $ (581 ) $ —   $ 7,419  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

        The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands):

 
   Less Than 12 Months   12 Months or Greater   Total  
As of January 2, 2016
  Fair
Value		   Gross
Unrealized
Losses		   Fair
Value		   Gross
Unrealized
Losses		   Fair
Value		   Gross
Unrealized
Losses		  

Municipal bonds

   $ 29,271   $ (30 ) $ 1,198   $ (2 ) $ 30,469   $ (32 )

Auction rate securities

     —     —     7,126     (874 )   7,126     (874 )

International government bonds

     2,220     (7 )   —     —     2,220     (7 )

Corporate bonds

     996     (3 )   —     —     996     (3 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 32,487   $ (40 ) $ 8,324   $ (876 ) $ 40,811   $ (916 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​


 

 
   Less Than 12 Months   12 Months or Greater   Total  
As of January 3, 2015
  Fair
Value		   Gross
Unrealized
Losses		   Fair
Value		   Gross
Unrealized
Losses		   Fair
Value		   Gross
Unrealized
Losses		  

Municipal bonds

   $ 23,735   $ (25 ) $ —   $ —   $ 23,735   $ (25 )

Corporate bonds

     20,327     (35 )   —     —     20,327     (35 )

Auction rate securities

     —     —     7,419     (581 )   7,419     (581 )

Asset-backed securities

     5,080     (3 )   —     —     5,080     (3 )

International government bond

     2,516     (10 )   —     —     2,516     (10 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 51,658   $ (73 ) $ 7,419   $ (581 ) $ 59,077   $ (654 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

        The gross unrealized losses as of January 2, 2016 and January 3, 2015 were due primarily to the illiquidity of the Company's auction-rate securities and, to a lesser extent, to changes in market interest rates.

        The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at January 2, 2016 (in thousands):

 
   Cost   Fair
Value		  

Due in one year or less

   $ 150,455   $ 150,477  

Due after one year through ten years

     26,113     26,093  

Due after ten years

     15,345     14,471  
​ ​ ​ ​ ​ ​ ​ ​

 

   $ 191,913   $ 191,041  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​