Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 28, 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 September 28, 2019 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	128,072	$	—	$	—	$	128,072
Corporate debt securities		—		5,291		—		5,291
Total cash equivalents	$	128,072	$	5,291	$	—	$	133,363
Short-term investments:
Government debt securities	$	80,686	$	78,739	$	—	$	159,425
Corporate debt securities		—		298,454		—		298,454
Total short-term investments	$	80,686	$	377,193	$	—	$	457,879
Other assets, net:
Auction rate securities	$	—	$	—	$	5,715	$	5,715
Total	$	—	$	—	$	5,715	$	5,715
Total	$	208,758	$	382,484	$	5,715	$	596,957

	Fair Value Measurements
	at December 29, 2018 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(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 September 28, 2019 (in thousands):

			Fair
	Cost		Value
Due in one year or less	$	408,664	$	409,445
Due after one year through ten years		176,798		177,497
Due after ten years		10,300		10,015
	$	595,762	$	596,957

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
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of September 28, 2019	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	23,804	$	(30)	$	20,922	$	(35)	$	44,726	$	(65)
Corporate debt securities		56,374		(100)		8,555		(2)		64,929		(102)
Auction rate securities		—		—		5,715		(285)		5,715		(285)
	$	80,178	$	(130)	$	35,192	$	(322)	$	115,370	$	(452)

	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 29, 2018	Value		Losses		Value		Losses		Value		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
September 28, 2019
(000s)		Valuation Technique	Unobservable Input	Weighted Average
$	5,715	Discounted cash flow	Estimated yield	3.59%
			Expected holding period	10 years
			Estimated discount rate	2.67%

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 28, 2019 (in thousands):

Assets
	Three Months		Nine Months
Auction Rate Securities	Ended		Ended
Beginning balance	$	5,647	$	5,759
Gain (loss) included in other comprehensive income (loss)		68		(44)
Balance at September 28, 2019	$	5,715	$	5,715