Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 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 September 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	$	89,262	$	—	$	—	$	89,262
Corporate debt securities	—		27,150		—		27,150
Government debt securities	—		7,200		—		7,200
Total cash equivalents	$	89,262	$	34,350	$	—	$	123,612
Short-term investments:
Government debt securities	$	61,967	$	127,120	$	—	$	189,087
Corporate debt securities	—		187,516		—		187,516
Total short-term investments	$	61,967	$	314,636	$	—	$	376,603
Other assets, net:
Auction rate securities	$	—	$	—	$	5,750	$	5,750
Total	$	—	$	—	$	5,750	$	5,750
Total	$	151,229	$	348,986	$	5,750	$	505,965

	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 September 29, 2018 (in thousands):

	Cost		Fair Value
Due in one year or less	$	341,518	$	340,710
Due after one year through ten years	128,856		128,062
Due after ten years	37,446		37,193
	$	507,820	$	505,965

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 September 29, 2018	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	123,102	$	(593	)	$	38,681	$	(369	)	$	161,783	$	(962	)
Corporate debt securities	129,315		(437		)	33,644		(218		)	162,959		(655		)
Auction rate securities	—		—			5,750		(250		)	5,750		(250		)
	$	252,417	$	(1,030	)	$	78,075	$	(837	)	$	330,492	$	(1,867	)

	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

Auction rate securities

Fair Value at September 29, 2018 (000s)		Valuation Technique	Unobservable Input	Weighted Average
$	5,750	Discounted cash flow	Estimated yield	2.99%
			Expected holding period	10 years
			Estimated discount rate	3.97%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the three and nine months ended September 29, 2018 (in thousands):

Assets

Auction Rate Securities	Three Months Ended		Nine Months Ended
Beginning balance	$	5,642	$	5,681
Gain (loss) included in other comprehensive loss	108		69
Balance at September 29, 2018	$	5,750	$	5,750