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Investments

Investments include primarily investment-grade corporate bonds having maturities of up to five years (the “bond portfolio”) and money market investments. 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 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 money market investments and Level 2 inputs related to investment-grade corporate bonds, asset-backed securities and direct obligations of government agencies. Unrealized losses, net of unrealized gains, on the investments in the bond portfolio were $1,113,000 and $223,000 at March 31, 2018 and December 30, 2017, respectively.

The amortized cost and fair values of available-for-sale investments are as follows at March 31, 2018 and December 30, 2017 (in thousands):


			Gross		Gross
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2018

Money market investments	$	26,096	$	—	$	—	$	26,096
Asset-backed securities		1,878		—		8		1,870
Corporate bonds and direct obligations of government agencies		83,764		25		1,130		82,659

Total	$	111,738	$	25	$	1,138	$	110,625

December 30, 2017

Money market investments	$	27,895	$	—	$	—	$	27,895
Asset-backed securities		2,805		—		5		2,800
Corporate bonds and direct obligations of government agencies		80,442		117		335		80,224

Total	$	111,142	$	117	$	340	$	110,919

For those available-for-sale investments with unrealized losses at March 31, 2018 and December 30, 2017, 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
March 31, 2018

Asset-backed securities	$	1,870	$	8	$	—	$	—	$	1,870	$	8
Corporate bonds and direct obligations of government agencies		65,717		953		9,931		177		75,648		1,130

Total	$	67,587	$	961	$	9,931	$	177	$	77,518	$	1,138

December 30, 2017

Asset-backed securities	$	1,864	$	4	$	632	$	1	$	2,496	$	5
Corporate bonds and direct obligations of government agencies		41,322		220		14,016		115		55,338		335

Total	$	43,186	$	224	$	14,648	$	116	$	57,834	$	340

The Company believes unrealized losses on investments were primarily caused by rising interest rates rather than changes in credit quality. The Company expects to recover the amortized cost basis of these securities as it does not intend to sell, and does not anticipate being required to sell, these securities before recovery of the cost basis. For these reasons, the Company does not consider the unrealized losses on these securities to be other-than-temporary at March 31, 2018.