Fair Value of Financial Instruments (Tables)

9 Months Ended

Oct. 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 October 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	$	1,126,821	$	—	$	—	$	1,126,821
Corporate debt securities		—		25,455		—		25,455
Total cash equivalents	$	1,126,821	$	25,455	$	—	$	1,152,276
Short-term investments:
Government debt securities	$	378,439	$	101,871	$	—	$	480,310
Corporate debt securities		—		883,785		—		883,785
Total short-term investments	$	378,439	$	985,656	$	—	$	1,364,095
Other assets, net:
Auction rate securities	$	—	$	—	$	5,100	$	5,100
Total	$	—	$	—	$	5,100	$	5,100
Total	$	1,505,260	$	1,011,111	$	5,100	$	2,521,471

	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

Schedule of maturities of the Company's available-for-sale investments and money market funds

			Fair
	Cost		Value
Due in one year or less	$	1,024,156	$	1,024,471
Due after one year through ten years		365,147		365,079
Due after ten years		6,000		5,100
	$	1,395,303	$	1,394,650

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 October 2, 2021	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	373,994	$	(59)	$	—	$	—	$	373,994	$	(59)
Corporate debt securities		249,579		(252)		—		—		249,579		(252)
Auction rate securities		—		—		5,100		(900)		5,100		(900)
	$	623,573	$	(311)	$	5,100	$	(900)	$	628,673	$	(1,211)

	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)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities

Fair Value at
October 2, 2021
(000s)		Valuation Technique	Unobservable Input	Weighted Average
$	5,100	Discounted cash flow	Estimated yield	1.07%
			Expected holding period	10 years
			Estimated discount rate	2.35%

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 October 2, 2021 (in thousands):

Assets

	Three Months		Nine Months
Auction Rate Securities	Ended		Ended
Beginning balance	$	5,100	$	5,340
Loss included in other comprehensive income (loss)		—		(240)
Balance at October 2, 2021	$	5,100	$	5,100