Cash, Cash Equivalents, and Investments

9 Months Ended

Oct. 02, 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):


	October 2,		December 31,
	2011		2010
Cash	$	28,038	$	26,650
Money market instruments		2,137		6,553

Cash and cash equivalents		30,175		33,203

Treasury bills		—		2,494
Municipal bonds		49,626		75,457
Corporate bonds		60,123		34,543
Agency bonds		31,276		15,979
Sovereign bonds		—		19,350
Covered bonds		1,384		—

Short-term investments		142,409		147,823

Municipal bonds		70,583		34,794
Corporate bonds		65,206		36,762
Agency bonds		13,894		21,025
Sovereign bonds		12,971		—
Covered bonds		4,934		3,541
Limited partnership interest (accounted for using cost method)		5,933		5,933

Long-term investments		173,521		102,055

	$	346,105	$	283,081

The Company’s portfolio consists of treasury bills, municipal bonds, corporate bonds, agency bonds, sovereign bonds, and covered bonds. Treasury bills 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 (Germany as of October 2, 2011); and covered bonds consist of debt securities backed by governments, mortgages, or public sector loans.

The following table summarizes the Company’s available-for-sale investments as of October 2, 2011 (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Short-term:
Municipal bonds	$	49,575	$	57	$	(6	)	$	49,626
Corporate bonds		60,879		9		(765	)		60,123
Agency bonds		31,289		15		(28	)		31,276
Covered bonds		1,384		—		—			1,384

Long-term:
Municipal bonds		70,413		227		(57	)		70,583
Corporate bonds		65,143		162		(99	)		65,206
Agency bonds		13,878		27		(11	)		13,894
Sovereign bonds		12,768		203		—			12,971
Covered bonds		4,919		15		—			4,934

	$	310,248	$	715	$	(966	)	$	309,997

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 October 2, 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	$	31,230	$	(62	)	$	704	$	(1	)	$	31,934	$	(63	)
Corporate bonds		56,169		(839	)		18,630		(25	)		74,799		(864	)
Agency bonds		19,663		(30	)		8,608		(9	)		28,271		(39	)

	$	107,062	$	(931	)	$	27,942	$	(35	)	$	135,004	$	(966	)

As of October 2, 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 $47,000 and $28,000, respectively, in the three-month period ended October 2, 2011, and $78,000 and $45,000, respectively, in the nine-month period ending October 2, 2011.

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of October 2, 2011 (in thousands):


	<1 Year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		Total
Municipal bonds	$	49,626	$	27,175	$	19,999	$	14,585	$	8,824	$	120,209
Corporate bonds		60,123		36,032		24,312		1,221		3,641		125,329
Agency bonds		31,276		11,499		2,395		—		—		45,170
Sovereign bonds		—		4,220		6,986		—		1,765		12,971
Covered bonds		1,384		4,934		—		—		—		6,318

	$	142,409	$	83,860	$	53,692	$	15,806	$	14,230	$	309,997

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 October 2, 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 nine-month period in 2011.