Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 02, 2022

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 April 2, 2022 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	$	489,907	$	—	$	—	$	489,907
Corporate debt securities		—		31,417		—		31,417
Total cash equivalents	$	489,907	$	31,417	$	—	$	521,324
Short-term investments:
Government debt securities	$	209,331	$	85,053	$	—	$	294,384
Corporate debt securities		—		873,423		—		873,423
Total short-term investments	$	209,331	$	958,476	$	—	$	1,167,807
Other assets, net:
Auction rate securities	$	—	$	—	$	4,944	$	4,944
Total	$	—	$	—	$	4,944	$	4,944
Total	$	699,238	$	989,893	$	4,944	$	1,694,075

	Fair Value Measurements
	at January 1, 2022 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	$	845,740	$	—	$	—	$	845,740
Corporate debt securities		—		3,552		—		3,552
Government debt securities		—		2,950				2,950
Total cash equivalents	$	845,740	$	6,502	$	—	$	852,242
Short-term investments:
Government debt securities	$	71,509	$	119,612	$	—	$	191,121
Corporate debt securities		—		773,461		—		773,461
Total short-term investments	$	71,509	$	893,073	$	—	$	964,582
Other assets, net:
Auction rate securities	$	—	$	—	$	4,980	$	4,980
Total	$	—	$	—	$	4,980	$	4,980
Total	$	917,249	$	899,575	$	4,980	$	1,821,804

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

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at April 2, 2022 (in thousands):

			Fair
	Cost		Value
Due in one year or less	$	638,424	$	636,611
Due after one year through ten years		572,449		562,613
Due after ten years		6,000		4,944
	$	1,216,873	$	1,204,168

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 April 2, 2022	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	290,078	$	(3,907)	$	478	$	(12)	$	290,556	$	(3,919)
Corporate debt securities		628,199		(7,707)		2,629		(34)		630,828		(7,741)
Auction rate securities		—		—		4,944		(1,056)		4,944		(1,056)
	$	918,277	$	(11,614)	$	8,051	$	(1,102)	$	926,328	$	(12,716)

	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of January 1, 2022	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	126,957	$	(750)	$	—	$	—	$	126,957	$	(750)
Corporate debt securities		418,917		(1,451)		326		(1)		419,243		(1,452)
Auction rate securities		—		—		4,980		(1,020)		4,980		(1,020)
	$	545,874	$	(2,201)	$	5,306	$	(1,021)	$	551,180	$	(3,222)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities

Fair Value at
April 2, 2022
(000s)		Valuation Technique	Unobservable Input	Weighted Average
	$4,944	Discounted cash flow	Estimated yield	1.01%
			Expected holding period	10 years
			Estimated discount rate	3.58%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the three months ended April 2, 2022 (in thousands):

Assets

	Three Months
Auction Rate Securities	Ended
Beginning balance	$	4,980
Loss included in other comprehensive loss		(36)
Balance at April 2, 2022	$	4,944