Marketable Securities

9 Months Ended

Sep. 26, 2020

NOTE 4. Marketable Securities

The Company has evaluated its investment policies and determined that all of its marketable securities, which are comprised of debt securities, are to be classified as available-for-sale. The Company’s available-for-sale debt securities are carried at fair value, with the unrealized gains and losses reported in Stockholders’ equity under the caption “Accumulated other comprehensive loss.” Realized gains and losses on available-for-sale securities are included in “Other (expense) income, net” on the Condensed Consolidated Statements of Operations. The Company records other-than-temporary impairment charges for its available-for-sale debt securities when it intends to sell the securities, it is more-likely-than not that it will be required to sell the securities before a recovery, or when it does not expect to recover the entire amortized cost basis of the securities. The cost of securities sold is based on the specific identification method.

The Company has determined that the gross unrealized losses on its marketable securities at September 26, 2020 and December 31, 2019 are temporary in nature. The Company reviews its investment portfolio to identify and evaluate marketable securities that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, credit quality and the Company’s ability and intent to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value.

At September 26, 2020 and December 31, 2019, marketable securities are categorized as follows:

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
September 26, 2020
Municipal notes and bonds	$	111,137	$	270	$	6	$	111,401
Asset-backed securities		15,109		51		—		15,160
Certificates of deposit		39,649		36		—		39,685
Commercial paper		27,472		18		1		27,489
Corporate bonds		44,963		126		27		45,062
Total marketable securities	$	238,330	$	501	$	34	$	238,797
December 31, 2019
Municipal notes and bonds	$	80,926	$	188	$	6	$	81,108
Asset-backed securities		10,767		12		—		10,779
Certificates of deposit		30,500		7		—		30,507
Commercial paper		30,707		1		—		30,708
Corporate bonds		36,409		52		—		36,461
Total marketable securities	$	189,309	$	260	$	6	$	189,563

The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Condensed Consolidated Balance Sheets classification, is as follows at September 26, 2020 and December 31, 2019:

	September 26, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	172,828	$	173,166	$	152,649	$	152,852
Due after one through five years		65,502		65,631		36,660		36,711
Due after five through ten years		—		—		—		—
Due after ten years		—		—		—		—
Total marketable securities	$	238,330	$	238,797	$	189,309	$	189,563

The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position, at September 26, 2020 and December 31, 2019:

	In Unrealized Loss Position For Less Than 12 Months				In Unrealized Loss Position For Greater Than 12 Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
September 26, 2020
Municipal notes and bonds	$	6,026	$	6	$	—	$	—
Commercial paper		4,497		1		—		—
Corporate bonds		17,858		27		—		—
Total	$	28,381	$	34	$	—	$	—
December 31, 2019
Municipal notes and bonds	$	14,166	$	6	$	—	$	—
Total	$	14,166	$	6	$	—	$	—

See Note 3 for additional discussion regarding the fair value of the Company’s marketable securities.