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Cash, Cash Equivalents, and Investments
 3 Months Ended
Apr. 01, 2012
Cash, Cash Equivalents, and Investments [Abstract]  
Cash, Cash Equivalents, and Investments

NOTE 3: Cash, Cash Equivalents, and Investments

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

 

 

                 
    April 1,
2012		     December 31,
2011		  

Cash

   $ 39,824     $ 36,404  

Money market instruments

     1,735       1,699  
   

 

 

    

 

 

  

Cash and cash equivalents

     41,559       38,103  
   

 

 

    

 

 

  

Corporate bonds

     61,517       55,570  

Municipal bonds

     57,862       54,036  

Agency bonds

     27,298       27,545  

Sovereign bonds

     6,222       4,016  

Covered bonds

     4,443       1,319  

Asset-backed securities

     1,867       —  

Treasury bills

     —       1,945  
   

 

 

    

 

 

  

Short-term investments

     159,209       144,431  
   

 

 

    

 

 

  

Corporate bonds

     71,969       59,902  

Municipal bonds

     67,532       69,680  

Sovereign bonds

     18,279       22,355  

Agency bonds

     13,987       12,335  

Asset-backed securities

     3,526       —  

Covered bonds

     1,740       4,701  

Treasury bills

     999       —  

Limited partnership interest (accounted for using cost method)

     5,933       5,933  
   

 

 

    

 

 

  

Long-term investments

     183,965       174,906  
   

 

 

    

 

 

  
    $ 384,733     $ 357,440  
   

 

 

    

 

 

  

The Company’s portfolio of debt securities consists of treasury bills, municipal bonds, corporate bonds, agency bonds, sovereign bonds, covered bonds, and asset-backed securities. Treasury bills consist of debt securities issued by both the U.S. and foreign governments; municipal bonds consist of debt securities issued by state and local government entities; corporate bonds consist of debt securities issued by both domestic and foreign 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 foreign governments; covered bonds consist of debt securities backed by governments, mortgages, or public sector loans; and asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement.

 

The following table summarizes the Company’s available-for-sale investments as of April 1, 2012 (in thousands):

 

 

                                 
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  

Short-term:

                                

Corporate bonds

   $ 61,459     $ 188     $ (130 )    $ 61,517  

Municipal bonds

     57,774       89       (1 )      57,862  

Agency bonds

     27,220       87       (9 )      27,298  

Sovereign bonds

     6,192       30       —       6,222  

Covered bonds

     4,402       41       —       4,443  

Asset-backed securities

     1,865       2       —       1,867  
         

Long-term:

                                

Corporate bonds

     71,175       795       (1 )      71,969  

Municipal bonds

     67,265       295       (28 )      67,532  

Sovereign bonds

     18,019       260       —       18,279  

Agency bonds

     13,988       34       (35 )      13,987  

Asset-backed securities

     3,520       6       —       3,526  

Covered bonds

     1,722       18       —       1,740  

Treasury bills

     998       1       —       999  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 335,599     $ 1,846     $ (204 )    $ 337,241  
   

 

 

    

 

 

    

 

 

    

 

 

  

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 1, 2012 (in thousands):

 

 

                                                 
    Unrealized Loss Position For:              
    Less than 12 Months     12 Months or Greater     Total  
    Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		  

Municipal bonds

   $ 19,415     $ (29 )    $ —     $ —     $ 19,415     $ (29 ) 

Agency bonds

     11,772       (44 )      —       —       11,772       (44 ) 

Corporate bonds

     3,935       (2 )      8,758       (129 )      12,693       (131 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 35,122     $ (75 )    $ 8,758     $ (129 )    $ 43,880     $ (204 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As of April 1, 2012, the Company did not recognize an other-than-temporary impairment of these investments. In its evaluation, management considered the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security 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 on the sale of debt securities totaling $94,000 in the first quarter of 2012, and gross realized gains and gross realized losses on the sale of debt securities totaling $9,000 and $14,000, respectively, in the first quarter of 2011.

 

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 1, 2012 (in thousands):

 

 

                                                         
    <1 Year     1-2 Years     2-3 Years     3-4 Years     4-5 Years     5-7 Years     Total  

Corporate bonds

   $ 61,517     $ 37,014     $ 25,674     $ 4,868     $ 4,413     $ —     $ 133,486  

Municipal bonds

     57,862       21,567       29,861       10,489       5,091       524       125,394  

Agency bonds

     27,298       10,515       2,101       1,371       —       —       41,285  

Sovereign bonds

     6,222       4,587       8,732       984       3,976       —       24,501  

Covered bonds

     4,443       1,740       —       —       —       —       6,183  

Asset-backed securities

     1,867       —       3,026       —       —       500       5,393  

Treasury bills

     —       999       —       —       —       —       999  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 159,209     $ 76,422     $ 69,394     $ 17,712     $ 13,480     $ 1,024     $ 337,241  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Company has chosen to disclose its Euro-denominated investment portfolio by country and specifically by security type. Financial institutions are included within the corporate bond sector and represent 17% of the Company’s total international portfolio. The following table summarizes the Company’s available-for-sale investments held in its international portfolio as of April 1, 2012 (in thousands):

 

 

                                                 

Short-term

   Corporate
bonds		     Agency
bonds		     Sovereign
bonds		     Asset-
backed
securities		     Covered
bonds		     Total  

Australia

   $ 3,399     $ —     $ —     $ —     $ —     $ 3,399  

Austria

     —       817       —       —       —       817  

Canada

     1,993       2,402       —       —       —       4,395  

Cayman Islands

     2,076       —       —       —       —       2,076  

France

     2,072       —       —       —       —       2,072  

Germany

     9,125       2,015       2,177       —       —       13,317  

Great Britain

     11,408       5,613       —       1,867       1,353       20,241  

Japan

     1,697       —       —       —       —       1,697  

Jersey

     1,341       —       —       —       —       1,341  

Netherlands

     4,266       8,092       4,046       —       1,721       18,125  

Norway

     —       —       —       —       1,369       1,369  

Supranational

     —       3,009       —       —       —       3,009  

Sweden

     3,038       3,676       —       —       —       6,714  

Switzerland

     3,679       —       —       —       —       3,679  

United States

     13,956       1,675       —       —       —       15,631  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 58,050     $ 27,299     $ 6,223     $ 1,867     $ 4,443     $ 97,882  

 

                                         

Long-term

   Corporate
bonds		     Agency
bonds		     Sovereign
bonds		     Covered
bonds		     Total  

Austria

   $ —     $ 4,798     $ —     $ —     $ 4,798  

Belgium

     1,824       —       —       —       1,824  

Canada

     1,119       2,279       —       —       3,398  

Denmark

     1,810       —       —       1,740       3,550  

Finland

     —       —       1,911       —       1,911  

France

     2,112       —       —       —       2,112  

Germany

     6,784       1,371       16,367       —       24,522  

Great Britain

     10,615       —       —       —       10,615  

Hong Kong

     1,749       —       —       —       1,749  

Japan

     1,891       —       —       —       1,891  

Jersey

     1,766       —       —       —       1,766  

Netherlands

     5,079       —       —       —       5,079  

Sweden

     —       2,101       —       —       2,101  

United States

     8,491       2,437       —       —       10,928  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 43,240     $ 12,986     $ 18,278     $ 1,740     $ 76,244  

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 April 1, 2012, 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. No contributions were made and no distributions were received in the first quarter of 2012. Distributions are received and contributions are requested at the discretion of Venrock’s management.