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Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 29, 2018
Fair Value of Financial Instruments  
Summary of valuation of the financial instruments

        The following summarizes the valuation of the Company's financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value.

 
  Fair Value Measurements
at December 29, 2018 Using
   
 
Description
  Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
  Significant Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
  Total  

Assets:

                         

Cash equivalents:

                         

Money market funds

  $ 74,990   $   $   $ 74,990  

Corporate debt securities

        18,820         18,820  

Government debt securities

    9,338             9,338  

Total cash equivalents

  $ 84,328   $ 18,820   $   $ 103,148  

Short-term investments:

   
 
   
 
   
 
   
 
 

Government debt securities

  $ 48,141   $ 99,211   $   $ 147,352  

Corporate debt securities

        269,427         269,427  

Total short-term investments

  $ 48,141   $ 368,638   $   $ 416,779  

Other assets, net:

   
 
   
 
   
 
   
 
 

Auction rate securities

  $   $   $ 5,759   $ 5,759  

Total

  $   $   $ 5,759   $ 5,759  

Total

 
$

132,469
 
$

387,458
 
$

5,759
 
$

525,686
 


 

 
  Fair Value Measurements
at December 30, 2017 Using
   
 
Description
  Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
  Significant Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
  Total  

Assets:

                         

Cash equivalents:

                         

Money market funds

  $ 106,047   $   $   $ 106,047  

Corporate debt securities

        11,231         11,231  

Government debt securities

    53,615     1,453         55,068  

Total cash equivalents

  $ 159,662   $ 12,684   $   $ 172,346  

Short-term investments:

   
 
   
 
   
 
   
 
 

Government debt securities

  $ 94,575   $ 228,247   $   $ 322,822  

Corporate debt securities

        171,835         171,835  

Total short-term investments

  $ 94,575   $ 400,082   $   $ 494,657  

Other assets, net:

   
 
   
 
   
 
   
 
 

Auction rate securities

  $   $   $ 5,681   $ 5,681  

Total

  $   $   $ 5,681   $ 5,681  

Total

 
$

254,237
 
$

412,766
 
$

5,681
 
$

672,684
 
Summarization of contractual underlying maturities of available-for-sale investments

The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at December 29, 2018 (in thousands):

 
  Cost   Fair Value  

Due in one year or less

  $ 338,623   $ 337,910  

Due after one year through ten years

    169,058     168,657  

Due after ten years

    19,360     19,119  

  $ 527,041   $ 525,686  
Schedule of available-for-sale investments in continuous unrealized loss position by length of time

        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 December 29, 2018
  Fair
Value
  Gross
Unrealized
Losses
  Fair
Value
  Gross
Unrealized
Losses
  Fair
Value
  Gross
Unrealized
Losses
 

Government debt securities

  $ 13,278   $ (10 ) $ 88,696   $ (583 ) $ 101,974   $ (593 )

Corporate debt securities

    112,699     (273 )   76,310     (448 )   189,009     (721 )

Auction rate securities

            5,759     (241 )   5,759     (241 )

  $ 125,977   $ (283 ) $ 170,765   $ (1,272 ) $ 296,742   $ (1,555 )


 

 
  Less Than 12 Months   12 Months or Greater   Total  
As of December 30, 2017
  Fair
Value
  Gross
Unrealized
Losses
  Fair
Value
  Gross
Unrealized
Losses
  Fair
Value
  Gross
Unrealized
Losses
 

Government debt securities

  $ 244,880   $ (931 ) $ 3,027   $ (15 ) $ 247,907   $ (946 )

Corporate debt securities

    151,149     (447 )   11,578     (73 )   162,727     (520 )

Auction rate securities

            5,681     (319 )   5,681     (319 )

  $ 396,029   $ (1,378 ) $ 20,286   $ (407 ) $ 416,315   $ (1,785 )
Summary of quantitative information about level 3 fair value measurements

        The following summarizes quantitative information about Level 3 fair value measurements.

Auction rate securities

Fair Value at
December 29, 2018
(000s)
  Valuation Technique   Unobservable Input   Weighted
Average
$5,759   Discounted cash flow   Estimated yield   3.23%

 

 

 

 

Expected holding period

 

10 years

 

 

 

 

Estimated discount rate

 

3.76%
Summary of activity in Level 3 financial instruments

        The following summarizes the activity in Level 3 financial instruments for the years ended December 29, 2018 and December 30, 2017 (in thousands):

Assets

 
  Year Ended  
Auction Rate Securities
  December 29,
2018
  December 30,
2017
 

Beginning balance

  $ 5,681   $ 5,196  

Gain included in other comprehensive income (loss)

    78     485  

Ending balance

  $ 5,759   $ 5,681  

Liabilities

 
  Year Ended  
Contingent Consideration (1)
  December 30,
2017
 

Beginning balance

  $  

Issues

    3,829  

Reclassification to acquisition-related liabilities

    (3,380 )

Gain recognized in selling, general and administrative expenses

    (449 )

Ending balance

  $  

(1)
In connection with the acquisition of Zentri, the Company recorded contingent consideration based on fiscal 2017 revenue from certain Zentri products.