Investment Securities

12 Months Ended

Dec. 28, 2013

Investment Securities [Abstract]

Investment Securities

NOTE 7. INVESTMENT SECURITIES

At December 28, 2013, the Company had investments in securities of $128.9 million (December 29, 2012-$153.7 million) comprised of money market funds, United States Treasury and Government Agency notes, Federal Deposit Insurance Corporation insured corporate notes, United States State and Municipal Securities, foreign government and agency notes, and corporate bonds and notes.

The Company’s available for sale investments, by investment type, as classified on the consolidated balance sheets consist of the following as at December 28, 2013 and December 29, 2012:

		December 28, 2013
(in thousands)	Amortized Cost		Gross Unrealized Gains*		Gross Unrealized Losses*		Fair Value
Cash equivalents:
Money market funds	$	14,629	$	-	$	-	$	14,629
Total cash equivalents		14,629		-		-		14,629
Short-term investments:
Corporate bonds and notes		7,735		416		(2)		8,149
US treasury and government agency notes		2,499		44		-		2,543
Foreign government and agency notes		-		-		-		-
US states and municipal securities		200		2		-		202
Total short-term investments		10,434		462		(2)		10,894
Long-term investment securities:
Corporate bonds and notes		74,583		121		(34)		74,670
US treasury and government agency notes		26,421		30		(9)		26,442
Foreign government and agency notes		2,049		1		(2)		2,048
US states and municipal securities		230		1		-		231
Total long-term investment securities		103,283		153		(45)		103,391
Total	$	128,346	$	615	$	(47)	$	128,914
*Gross unrealized gains include accrued interest on investments of $0.5 million, which are included in the Consolidated Statement of Operations.  The remainder of the gross unrealized gains and losses are included the Consolidated Balance Sheet as Accumulated other comprehensive income (loss).

		December 29, 2012
(in thousands)	Amortized Cost		Gross Unrealized Gains*		Gross Unrealized Losses*		Fair Value
Cash equivalents:
Money market funds	$	50,528	$	-	$	-	$	50,528
Total cash equivalents		50,528		-		-		50,528
Short-term investments:
Corporate bonds and notes		9,163		522		-		9,685
US states and municipal securities		1,720		26		-		1,746
Total short-term investments		10,883		548		-		11,431
Long-term investment securities:
Corporate bonds and notes		53,567		329		(16)		53,880
US treasury and government agency notes		33,830		25		(1)		33,854
Foreign government and agency notes		4,018		26		-		4,044
Total long-term investment securities		91,415		380		(17)		91,778
Total	$	152,826	$	928	$	(17)	$	153,737
*Gross unrealized gains include accrued interest on investments of $0.9 million, which are included in the Consolidated Statement of Operations.  The remainder of the gross unrealized gains and losses are included the Consolidated Balance Sheet as Accumulated other comprehensive income (loss).

Our cash equivalents, short-term investments and long-term investment securities are comprised of money market funds, United States Treasury and Government Agency notes, Federal Deposit Insurance Corporation (“FDIC”) insured corporate notes, United States State and Municipal Securities, foreign government and agency notes and corporate bonds and notes with minimum ratings of P-1 or A3 by Moody’s, or A-1 or A- by Standard and Poor’s, or equivalent at the date of purchase. Contractual maturities as of December 28, 2013 for our investment securities do not exceed 3 years.

In relation to the unrealized losses summarized in the tables above, as of December 28, 2013 and December 29, 2012, the fair value of certain of the Company’s available-for-sale securities was less than their cost basis. Management reviewed various factors in determining whether to recognize an impairment charge related to these unrealized losses, including the current financial and credit market environment, the financial condition and near-term prospects of the issuer of the investment security, the magnitude of the unrealized loss compared to the cost of the investment, length of time the investment has been in a loss position and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery of market value. As of December 28, 2013, the Company determined that the unrealized losses are temporary in nature and recorded them as a component of Accumulated other comprehensive income (loss).