Fair Value of Financial Instruments (Tables)

12 Months Ended

Jan. 02, 2021

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 January 2, 2021 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	$	75,606	$	—	$	—	$	75,606
Corporate debt securities		—		14,995		—		14,995
Government debt securities		2,355		2,564		—		4,919
Total cash equivalents	$	77,961	$	17,559	$	—	$	95,520
Short-term investments:
Government debt securities	$	38,461	$	104,112	$	—	$	142,573
Corporate debt securities		—		379,390		—		379,390
Total short-term investments	$	38,461	$	483,502	$	—	$	521,963
Other assets, net:
Auction rate securities	$	—	$	—	$	5,340	$	5,340
Total	$	—	$	—	$	5,340	$	5,340
Total	$	116,422	$	501,061	$	5,340	$	622,823

4. Fair Value of Financial Instruments (Continued)

	Fair Value Measurements
	at December 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	$	92,379	$	—	$	—	$	92,379
Corporate debt securities		—		1,325		—		1,325
Total cash equivalents	$	92,379	$	1,325	$	—	$	93,704
Short-term investments:
Government debt securities	$	85,189	$	86,682	$	—	$	171,871
Corporate debt securities		—		326,954		—		326,954
Total short-term investments	$	85,189	$	413,636	$	—	$	498,825
Other assets, net:
Auction rate securities	$	—	$	—	$	5,647	$	5,647
Total	$	—	$	—	$	5,647	$	5,647
Total	$	177,568	$	414,961	$	5,647	$	598,176

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 January 2, 2021 (in thousands):

			Fair
	Cost		Value
Due in one year or less	$	380,069	$	381,219
Due after one year through ten years		202,363		203,484
Due after ten years		38,780		38,120
	$	621,212	$	622,823

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 January 2, 2021	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	10,146	$	(5)	$	—	$	—	$	10,146	$	(5)
Corporate debt securities		51,909		(74)		—		—		51,909		(74)
Auction rate securities		—		—		5,340		(660)		5,340		(660)
	$	62,055	$	(79)	$	5,340	$	(660)	$	67,395	$	(739)

	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 28, 2019	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	11,947	$	(19)	$	7,183	$	(7)	$	19,130	$	(26)
Corporate debt securities		68,116		(81)		20		—		68,136		(81)
Auction rate securities		—		—		5,647		(353)		5,647		(353)
	$	80,063	$	(100)	$	12,850	$	(360)	$	92,913	$	(460)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities

Fair Value at
January 2, 2021				Weighted
(000s)		Valuation Technique	Unobservable Input	Average
$	5,340	Discounted cash flow	Estimated yield	1.56	%
			Expected holding period	10 years
			Estimated discount rate	2.09	%

Summary of activity in Level 3 financial instruments

Assets

	Year Ended
	January 2,		December 28,
Auction Rate Securities	2021		2019
Beginning balance	$	5,647	$	5,759
Losses included in other comprehensive income (loss)		(307)		(112)
Ending balance	$	5,340	$	5,647