Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Aug. 30, 2019

Cash, Cash Equivalents, and Short-term Investments [Abstract]

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. We classify our investments as “available-for-sale.” In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our condensed consolidated balance sheets. Gains and losses are determined using the specific identification method and recognized when realized in our condensed consolidated statements of income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income.

Cash, cash equivalents and short-term investments consisted of the following as of August 30, 2019:

(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Current assets:
Cash	$	437,246	$	—	$	—		$	437,246
Cash equivalents:
Corporate debt securities	113,193		4		(6		)	113,191
Money market mutual funds	1,595,310		—		—			1,595,310
Time deposits	61,600		—		—			61,600
U.S. agency securities	1,700		—		—			1,700
Total cash equivalents	1,771,803		4		(6		)	1,771,801
Total cash and cash equivalents	2,209,049		4		(6		)	2,209,047
Short-term fixed income securities:
Asset-backed securities	75,706		183		(21		)	75,868
Corporate debt securities	1,308,885		4,213		(479		)	1,312,619
Foreign government securities	2,400		—		(1		)	2,399
Municipal securities	20,787		109		(1		)	20,895
U.S. agency securities	22,001		4		—			22,005
U.S. Treasury securities	7,955		—		—			7,955
Total short-term investments	1,437,734		4,509		(502		)	1,441,741
Total cash, cash equivalents and short-term investments	$	3,646,783	$	4,513	$	(508	)	$	3,650,788

Cash, cash equivalents and short-term investments consisted of the following as of November 30, 2018:

(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Current assets:
Cash	$	368,564	$	—	$	—		$	368,564
Cash equivalents:
Money market mutual funds	1,234,188		—		—			1,234,188
Time deposits	40,023		—		—			40,023
Total cash equivalents	1,274,211		—		—			1,274,211
Total cash and cash equivalents	1,642,775		—		—			1,642,775
Short-term fixed income securities:
Asset-backed securities	41,875		—		(367		)	41,508
Corporate debt securities	1,546,860		44		(24,696		)	1,522,208
Foreign government securities	4,179		—		(24		)	4,155
Municipal securities	18,601		1		(286		)	18,316
Total short-term investments	1,611,515		45		(25,373		)	1,586,187
Total cash, cash equivalents and short-term investments	$	3,254,290	$	45	$	(25,373	)	$	3,228,962

The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months, as of August 30, 2019 and November 30, 2018:

(in thousands)	2019					2018
	Fair  Value		Gross Unrealized Losses			Fair  Value		Gross Unrealized Losses
Corporate debt securities	$	222,357	$	(84	)	$	538,109	$	(7,966	)
Asset-backed securities	—		—			6,696		(54		)
Municipal securities	1,609		(1		)	6,599		(81		)
Total	$	223,966	$	(85	)	$	551,404	$	(8,101	)

 

There were 92 securities and 369 securities in an unrealized loss position for less than twelve months at August 30, 2019 and at November 30, 2018, respectively.

The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that were in a continuous unrealized loss position for more than twelve months, as of August 30, 2019 and November 30, 2018:

(in thousands)	2019					2018
	Fair  Value		Gross Unrealized Losses			Fair  Value		Gross Unrealized Losses
Corporate debt securities	$	255,175	$	(401	)	$	969,701	$	(16,730	)
Asset-backed securities	15,912		(21		)	34,812		(313		)
Municipal securities	—		—			11,532		(205		)
Foreign government securities	2,399		(1		)	4,154		(24		)
Total	$	273,486	$	(423	)	$	1,020,199	$	(17,272	)

There were 148 securities and 577 securities in an unrealized loss position for more than twelve months at August 30, 2019 and at November 30, 2018, respectively.

The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of August 30, 2019:

(in thousands)	Amortized Cost		Estimated Fair Value
Due within one year	$	790,327	$	790,849
Due between one and two years	474,157		475,770
Due between two and three years	138,478		139,776
Due after three years	34,772		35,346
Total	$	1,437,734	$	1,441,741

We review our debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we write down these investments to fair value. The portion of the write-down related to credit loss would be recorded to interest and other income, net in our condensed consolidated statements of income. Any portion not related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our condensed consolidated balance sheets. During the nine months ended August 30, 2019 and August 31, 2018, we did not consider any of our investments to be other-than-temporarily impaired.