Cash, Cash Equivalents, and Investments

6 Months Ended

Jul. 03, 2011

Cash, Cash Equivalents, and Investments [Abstract]

NOTE 4: Cash, Cash Equivalents, and Investments

Cash, cash equivalents, and investments consisted of the following (in thousands):


	July 3,		December 31,
	2011		2010

Cash	$	28,679	$	26,650
Money market instruments		2,452		6,553
Treasury bills		11,545		-

Cash and cash equivalents		42,676		33,203


Treasury bills		12,979		2,494
Municipal bonds		86,029		75,457
Corporate bonds		68,425		34,543
Agency bonds		23,428		15,979
Sovereign bonds		11,151		19,350

Short-term investments		202,012		147,823


Treasury bills		691		-
Municipal bonds		32,674		34,794
Corporate bonds		37,319		36,762
Agency bonds		14,988		21,025
Sovereign bonds		10,380		-
Covered bonds		6,715		3,541
Limited partnership interest (accounted for using cost method)		5,933		5,933

Long-term investments		108,700		102,055

	$	353,388	$	283,081

The Company’s portfolio consists of treasury bills, municipal bonds, corporate bonds, agency bonds, sovereign bonds, and covered bonds. In the second quarter of 2011, the Company invested in French Treasury bills that have been classified as a cash equivalent. Treasury bills classified as investments consist of debt securities issued by the U.S. government; municipal bonds consist of debt securities issued by state and local government entities; corporate bonds consist of debt securities issued by both international and domestic companies; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; sovereign bonds consist of direct debt issued by international governments (France, Germany, and the Netherlands as of July 3, 2011); and covered bonds consist of debt securities backed by governments, mortgages, or public sector loans.

The following tables summarize the Company’s available-for-sale investments as of July 3, 2011 (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Short-term:
Treasury bills	$	12,979	$	-	$	-	$	12,979
Municipal bonds		85,959		75		(5)		86,029
Corporate bonds		68,528		15		(118)		68,425
Agency bonds		23,442		24		(38)		23,428
Sovereign bonds		11,186		-		(35)		11,151

Long-term:
Treasury bills		690		1		-		691
Municipal bonds		32,549		127		(2)		32,674
Corporate bonds		37,732		-		(413)		37,319
Agency bonds		15,103		1		(116)		14,988
Sovereign bonds		10,387		2		(9)		10,380
Covered bonds		6,755		-		(40)		6,715


	$	305,310	$	245	$	(776)	$	304,779

The following tables summarize the Company’s gross unrealized losses and fair value for available-for-sale investments in an unrealized loss position as of July 3, 2011, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Municipal bonds	$	39,174	$	(7)	$	-	$	-	$	39,174	$	(7)
Corporate bonds		84,990		(515)		10,438		(16)		95,428		(531)
Agency bonds		24,993		(149)		1,259		(5)		26,252		(154)
Sovereign bonds		13,144		(23)		2,483		(21)		15,627		(44)
Covered bonds		6,715		(40)		-		-		6,715		(40)

	$	169,016	$	(734)	$	14,180	$	(42)	$	183,196	$	(776)

As of July 3, 2011, the Company did not identify an other-than-temporary impairment on these investments. In its evaluation, management considered the types of securities, the credit rating of the securities, the length of time the securities have been in a loss position, the size of the loss position, our intent and ability to hold the securities to expected recovery of value, and other meaningful information. The Company does not intend to sell, and is unlikely to be required to sell, any of these securities before its effective maturity or market price recovery. The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $22,000 and $3,000, respectively, in the three-month period ended July 3, 2011, and $31,000 and $17,000, respectively, in the six-month period ending July 3, 2011.

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of July 3, 2011 (in thousands):


		<1 Year		1-2 Years		2-3 Years		3-4 Years		Total
Treasury bills	$	12,979	$	691	$	-	$	-	$	13,670
Municipal bonds		86,029		23,889		7,769		1,016		118,703
Corporate bonds		68,425		20,879		16,440		-		105,744
Agency bonds		23,428		11,984		3,004		-		38,416
Sovereign bonds		11,151		4,476		5,904		-		21,531
Covered bonds		-		6,715		-		-		6,715

	$	202,012	$	68,634	$	33,117	$	1,016	$	304,779

In June 2000, the Company became a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. A Director of the Company was a General Partner of Venrock Associates through December 31, 2009. The Company has committed to a total investment in the limited partnership of up to $20,500,000, with an expiration date of December 31, 2013. As of July 3, 2011, the Company contributed $19,886,000 to the partnership. The remaining commitment of $614,000 can be called by Venrock at any time before December 31, 2013. Distributions are received and contributions are requested at the discretion of Venrock’s management. No contributions were made and no distributions were received during the six-month period in 2011.