3. Cash, Cash Equivalents and Investments

The Company’s cash equivalents and short-term investments as of March 30, 2013 consisted of variable-rate demand notes, corporate bonds, municipal bonds, money market funds, U.S. Treasury bills, asset-backed securities, U.S. government bonds and international government bonds. The Company’s long-term investments consisted of auction-rate securities. Early in fiscal 2008, auctions for many of the Company’s auction-rate securities failed because sell orders exceeded buy orders. As of March 30, 2013, the Company held $12.5 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 $10.5 million were guaranteed by the U.S. government and the remaining $2.0 million were privately insured. As of March 30, 2013, $4.5 million of the auction-rate securities had credit ratings of AAA, $6.0 million 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 March 30, 2013. 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 March 30, 2013.

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

	March 30, 2013
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	32,034	$	—		$	—	$	32,034
Available-for-sale securities:
Money market funds	44,590		—			—		44,590
Municipal bonds	2,314		—			—		2,314
U.S. Treasury bills	325		—			—		325
Total available-for-sale securities	47,229		—			—		47,229

Total cash and cash equivalents	$	79,263	$	—		$	—	$	79,263

Short-term Investments:
Available-for-sale securities:
Variable-rate demand notes	$	64,185	$	—		$	—	$	64,185
Corporate bonds	61,607		(7		)	253		61,853
Municipal bonds	52,978		(10		)	65		53,033
U.S. Treasury bills	20,322		—			1		20,323
Asset-backed securities	15,751		(2		)	8		15,757
U.S. government bonds	12,633		—			25		12,658
International government bonds	1,983		—			16		1,999
Total short-term investments	$	229,459	$	(19	)	$	368	$	229,808

Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	12,450	$	(1,261	)	$	—	$	11,189
Total long-term investments	$	12,450	$	(1,261	)	$	—	$	11,189

	December 29, 2012
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	56,690	$	—		$	—	$	56,690
Available-for-sale securities:
U.S. Treasury bills	25,049		—			1		25,050
Money market funds	22,685		—			1		22,686
Municipal bonds	1,000		—			—		1,000
Total available-for-sale securities	48,734		—			2		48,736

Total cash and cash equivalents	$	105,424	$	—		$	2	$	105,426

Short-term Investments:
Available-for-sale securities:
Corporate bonds	$	59,089	$	(5	)	$	267	$	59,351
Municipal bonds	45,646		(7		)	50		45,689
Variable-rate demand notes	41,785		—			—		41,785
Asset-backed securities	15,058		—			11		15,069
U.S. government bonds	12,638		—			25		12,663
International government bonds	1,991		—			17		2,008
Total short-term investments	$	176,207	$	(12	)	$	370	$	176,565

Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	12,525	$	(1,156	)	$	—	$	11,369
Total long-term investments	$	12,525	$	(1,156	)	$	—	$	11,369

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 March 30, 2013	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	13,196	$	(10	)	$	—	$	—		$	13,196	$	(10	)
Auction rate securities	—		—			11,189		(1,261		)	11,189		(1,261		)
Corporate bonds	6,989		(7		)	—		—			6,989		(7		)
Asset-backed securities	5,322		(2		)	—		—			5,322		(2		)
	$	25,507	$	(19	)	$	11,189	$	(1,261	)	$	36,696	$	(1,280	)

	Less Than 12 Months					12 Months or Greater					Total
As of December 29, 2012	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	17,152	$	(7	)	$	—	$	—		$	17,152	$	(7	)
Auction rate securities	—		—			11,369		(1,156		)	11,369		(1,156		)
Corporate bonds	9,543		(5		)	—		—			9,543		(5		)
	$	26,695	$	(12	)	$	11,369	$	(1,156	)	$	38,064	$	(1,168	)

The gross unrealized losses as of March 30, 2013 and December 29, 2012 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 March 30, 2013 (in thousands):

	Cost		Fair Value
Due in one year or less	$	121,784	$	121,854
Due after one year through ten years	99,419		99,698
Due after ten years	67,935		66,674
	$	289,138	$	288,226