Investments

3 Months Ended

Sep. 25, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Short-term investments consist of corporate bonds, municipal bonds, U.S. treasury securities, variable rate demand notes and U.S. agency securities. All short-term investments are classified as available-for-sale. The Company did not have any long-term investments as of September 25, 2022 and June 26, 2022.

Short-term investments as of September 25, 2022 and June 26, 2022 consisted of the following (in millions of U.S. Dollars):

	September 25, 2022
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Credit Loss Allowance	Estimated Fair Value
Corporate bonds	$439.3	$—	($22.4)	$—	$416.9
Municipal bonds	156.9	—	(6.2)	—	150.7
U.S. treasury securities	56.5	—	(1.2)	—	55.3
Variable rate demand notes	50.8	—	—	—	50.8
U.S. agency securities	2.0	—	(0.1)	—	1.9
Total short-term investments	$705.5	$—	($29.9)	$—	$675.6
	June 26, 2022
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Credit Loss Allowance	Estimated Fair Value
Corporate bonds	$465.8	$—	($17.8)	$—	$448.0
Municipal bonds	166.5	0.1	(4.4)	—	162.2
U.S. treasury securities	66.5	—	(0.7)	—	65.8
Variable rate demand notes	69.4	—	—	—	69.4
U.S. agency securities	4.0	—	(0.1)	—	3.9
Total short-term investments	$772.2	$0.1	($23.0)	$—	$749.3

The following tables present the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position (in millions of U.S. Dollars):

	September 25, 2022
	Less than 12 Months		Greater than 12 Months		Total
	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Corporate bonds	$376.5	($20.3)	$39.8	($2.1)	$416.3	($22.4)
Municipal bonds	146.3	(6.1)	2.9	(0.1)	149.2	(6.2)
U.S. treasury securities	55.3	(1.2)	—	—	55.3	(1.2)
U.S. agency securities	—	—	1.9	(0.1)	1.9	(0.1)
Total	$578.1	($27.6)	$44.6	($2.3)	$622.7	($29.9)
Number of securities with an unrealized loss		305		27		332
	June 26, 2022
	Less than 12 Months		Greater than 12 Months		Total
	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Corporate bonds	$431.1	($17.4)	$8.3	($0.4)	$439.4	($17.8)
Municipal bonds	150.0	(4.4)	1.0	—	151.0	(4.4)
U.S. treasury securities	65.8	(0.7)	—	—	65.8	(0.7)
U.S. agency securities	3.9	(0.1)	—	—	3.9	(0.1)
Total	$650.8	($22.6)	$9.3	($0.4)	$660.1	($23.0)
Number of securities with an unrealized loss		346		5		351

Additionally, the Company held cash equivalent securities in unrealized loss positions as of September 25, 2022 and June 26, 2022. As of September 25, 2022, the Company held nine cash equivalent securities in unrealized loss positions with an aggregate fair value of $97.8 million and an aggregate unrealized loss of less than $0.1 million. As of June 26, 2022, the Company held six cash equivalent securities in unrealized loss positions with an aggregate fair value of $69.0 million and an aggregate unrealized loss of less than $0.1 million. All cash equivalents in unrealized loss positions as of September 25, 2022 and June 26, 2022 have been in unrealized loss positions for less than 12 months.

The Company does not include accrued interest in estimated fair values of short-term investments and does not record an allowance for credit losses on receivables related to accrued interest. Accrued interest receivable was $4.5 million and $5.9 million as of September 25, 2022 and June 26, 2022, respectively, and is recorded in other current assets on the consolidated balance sheets. When necessary, write-offs of noncollectable interest income are recorded as a reversal to interest income. There were no write-offs of noncollectable interest income during the three months ended September 25, 2022 and September 26, 2021.

The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses are included in non-operating (income) expense, net in the consolidated statements of operations. Unrealized gains and losses are included as a separate component of equity, net of tax, unless the Company determines there is an expected credit loss.

The Company evaluates its investments for expected credit losses. The Company believes it is able to and intends to hold each of the investments held with an unrealized loss as of September 25, 2022 until the investments fully recover in market value. No allowance for credit losses was recorded as of September 25, 2022.

The contractual maturities of short-term investments as of September 25, 2022 were as follows:

 

(in millions of U.S. Dollars)	Within One Year	After One, Within Five Years	After Five, Within Ten Years	After Ten Years	Total
Corporate bonds	$124.5	$292.4	$—	$—	$416.9
Municipal bonds	52.3	98.4	—	—	150.7
U.S. treasury securities	29.4	25.9	—	—	55.3
Variable rate demand notes	—	—	14.7	36.1	50.8
U.S. agency securities	—	1.9	—	—	1.9
Total short-term investments	$206.2	$418.6	$14.7	$36.1	$675.6