Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 30, 2019

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 March 30, 2019 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	$	84,151	$	—	$	—	$	84,151
Corporate debt securities	—		14,665		—		14,665
Government debt securities	21,878		19,463		—		41,341
Total cash equivalents	$	106,029	$	34,128	$	—	$	140,157
Short-term investments:
Government debt securities	$	55,571	$	70,349	$	—	$	125,920
Corporate debt securities	—		256,790		—		256,790
Total short-term investments	$	55,571	$	327,139	$	—	$	382,710
Other assets, net:
Auction rate securities	$	—	$	—	$	5,761	$	5,761
Total	$	—	$	—	$	5,761	$	5,761
Total	$	161,600	$	361,267	$	5,761	$	528,628

	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

Schedule of maturities of the Company's available-for-sale investments

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at March 30, 2019 (in thousands):

	Cost		Fair Value
Due in one year or less	$	363,143	$	362,990
Due after one year through ten years	159,416		159,877
Due after ten years	6,000		5,761
	$	528,559	$	528,628

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 March 30, 2019	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	11,437	$	(3	)	$	72,515	$	(325	)	$	83,952	$	(328	)
Corporate debt securities	31,053		(33		)	43,724		(179		)	74,777		(212		)
Auction rate securities	—		—			5,761		(239		)	5,761		(239		)
	$	42,490	$	(36	)	$	122,000	$	(743	)	$	164,490	$	(779	)

	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	)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities

Fair Value at March 30, 2019 (000s)		Valuation Technique	Unobservable Input	Weighted Average
$	5,761	Discounted cash flow	Estimated yield	3.42%
			Expected holding period	10 years
			Estimated discount rate	3.43%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the three months ended March 30, 2019 (in thousands):

Assets

Auction Rate Securities	Three Months Ended
Beginning balance	$	5,759
Gain included in other comprehensive income (loss)	2
Balance at March 30, 2019	$	5,761