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Investments

Investments include primarily investment-grade corporate bonds and U.S. Treasury obligations having maturities of up to five years (the “bond portfolio”). Investments in the bond portfolio are reported as available-for-sale and are carried at fair value. Investments maturing less than one year from the balance sheet date are included in short-term investments and investments maturing more than one year from the balance sheet date are included in other assets in the consolidated balance sheets. Management performs an analysis of the nature of the unrealized losses on available-for-sale investments to determine whether such losses are other-than-temporary. Unrealized losses, representing the excess of the purchase price of an investment over its fair value as of the end of a period, considered to be other-than-temporary, are to be included as a charge in the statement of income, while unrealized losses considered to be temporary are to be included as a component of shareholders’ equity. Investments whose values are based on quoted market prices in active markets are classified within Level 1. Investments that trade in markets that are not considered to be active, but are valued based on quoted market prices, are classified within Level 2. As Level 2 investments include positions that are not traded in active markets, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information. Any transfers between levels are recognized as of the beginning of any reporting period. Fair value of the bond portfolio was determined using Level 1 inputs related to U.S. Treasury obligations and money market investments and Level 2 inputs related to investment-grade corporate bonds, asset-backed securities and direct obligations of government agencies. Unrealized gains, net of unrealized losses, on the investments in the bond portfolio were $169,000 and $1,407,000 at June 29, 2013 and December 29, 2012, respectively.

The amortized cost and fair values of available-for-sale investments are as follows at June 29, 2013 and December 29, 2012 (in thousands):


			Gross		Gross
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
June 29, 2013
Money market investments	$	860	$	—	$	—	$	860
Asset-backed securities		5,609		35		112		5,532
Corporate bonds and direct obligations of government agencies		76,297		740		517		76,520
U.S. Treasury obligations		18,782		37		14		18,805

Total	$	101,548	$	812	$	643	$	101,717

December 29, 2012
Money market investments	$	2,865	$	—	$	—	$	2,865
Asset-backed securities		2,175		73		—		2,248
Corporate bonds and direct obligations of government agencies		69,173		1,294		6		70,461
U.S. Treasury obligations		16,782		47		1		16,828

Total	$	90,995	$	1,414	$	7	$	92,402

For those available-for-sale investments with unrealized losses at June 29, 2013 and December 29, 2012, the following table summarizes the duration of the unrealized loss (in thousands):


	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
June 29, 2013
Asset -backed securities	$	4,074	$	112	$	—	$	—	$	4,074	$	112
Corporate bonds and direct obligations of government agencies		33,801		517		—		—		33,801		517
U.S. Treasury obligations		755		14		—		—		755		14

Total	$	38,630	$	643	$	—	$	—	$	38,630	$	643

December 29, 2012
Corporate bonds and direct obligations of government agencies	$	3,387	$	6	$	—	$	—	$	3,387	$	6
U.S. Treasury obligations		770		1		—		—		770		1

Total	$	4,157	$	7	$	—	$	—	$	4,157	$	7