Fair Value of Financial Instruments (Tables)

6 Months Ended

Jul. 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 July 2, 2022 Using
	Quoted Prices in		Significant Other
	Active Markets for		Observable
	Identical Assets		Inputs
Description	(Level 1)		(Level 2)		Total
Assets:
Cash equivalents:
Money market funds	$	275,655	$	—	$	275,655
Government debt securities		23,617		5,003		28,620
Corporate debt securities		—		16,934		16,934
Total cash equivalents	$	299,272	$	21,937	$	321,209
Short-term investments:
Government debt securities	$	211,319	$	92,343	$	303,662
Corporate debt securities		—		669,183		669,183
Total short-term investments	$	211,319	$	761,526	$	972,845
Total	$	510,591	$	783,463	$	1,294,054

	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 July 2, 2022 (in thousands):

			Fair
	Cost		Value
Due in one year or less	$	582,705	$	577,005
Due after one year through ten years		450,388		440,743
Due after ten years		650		650
	$	1,033,743	$	1,018,398

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 July 2, 2022	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	304,308	$	(5,200)	$	2,051	$	(60)	$	306,359	$	(5,260)
Corporate debt securities		630,420		(9,918)		9,416		(190)		639,836		(10,108)
	$	934,728	$	(15,118)	$	11,467	$	(250)	$	946,195	$	(15,368)

	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 activity in Level 3 financial instruments

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

Assets

	Three Months		Six Months
Auction Rate Securities	Ended		Ended
Beginning balance	$	4,944	$	4,980
Sales (1)		(6,000)		(6,000)
Loss recognized in earnings		300		300
Gain included in other comprehensive loss		756		720
Balance at July 2, 2022	$	—	$	—

(1)On May 31, 2022, the Company sold its prior remaining holding of auction-rate securities for $5.7 million.