Cash and Investments

12 Months Ended

Jan. 01, 2021

Investments, Debt and Equity Securities [Abstract]

CASH AND INVESTMENTS

Cash, Cash Equivalents and Restricted Cash Equivalents

A reconciliation of cash, cash equivalents, and restricted cash equivalents reported within our Consolidated Balance Sheets to the amount reported within the accompanying Consolidated Statements of Cash Flows was as follows (in thousands):


	December 31,
	2020		2019
Cash and cash equivalents	$	319,217	$	266,501

Restricted cash equivalents included in long-term investments	1,555		1,636
Cash, cash equivalents, and restricted cash equivalents as reported within the accompanying Consolidated Statements of Cash Flows	$	320,772	$	268,137

Restricted cash equivalents consisted of certificates of deposit with original maturities of 90 days or less used to collateralize letters of credit and, during prior periods, a purchasing card program. The long-term classification of restricted cash equivalents is based upon the remaining term of the underlying restriction.

Cash and Investments

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


	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale:
Commercial paper	$	569,456	$	372	$	—	$	569,828
Corporate bonds	543,520		5,244		(7)		548,757
U.S. Treasury and government-sponsored enterprises	208,326		232		(4)		208,554
Municipal bonds	28,680		83		(1)		28,762
Total debt securities available-for-sale	1,349,982		5,931		(12)		1,355,901
Cash	82,176		—		—		82,176
Money market funds	40,761		—		—		40,761
Certificates of deposit	60,004		—		—		60,004
Total cash and investments	$	1,532,923	$	5,931	$	(12)	$	1,538,842


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale:
Commercial paper	$	389,573	$	—	$	—	$	389,573
Corporate bonds	752,295		3,934		(3)		756,226
U.S. Treasury and government-sponsored enterprises	166,483		187		(5)		166,665
Total debt securities available-for-sale	1,308,351		4,121		(8)		1,312,464
Cash	40,964		—		—		40,964
Money market funds	2,467		—		—		2,467
Certificates of deposit	32,728		5		—		32,733
Total cash and investments	$	1,384,510	$	4,126	$	(8)	$	1,388,628

Interest receivable was $4.5 million and $6.2 million as of December 31, 2020 and 2019, respectively, and is included in prepaid and other current assets in the accompanying Consolidated Balance Sheets.

Realized gains and losses on the sales of investments were insignificant during the years ended December 31, 2020, 2019 and 2018.

We manage credit risk associated with our investment portfolio through our investment policy, which limits purchases to high-quality issuers and limits the amount of our portfolio that can be invested in a single issuer. The fair value and gross unrealized losses on debt securities available-for-sale in an unrealized loss position were as follows (in thousands):


	December 31, 2020

	Fair Value		Gross Unrealized Losses
Corporate bonds	$	28,445	$	(7)
U.S. Treasury and government-sponsored enterprises	21,989		(4)
Municipal bonds	5,865		(1)
Total	$	56,299	$	(12)


	December 31, 2019

	Fair Value		Gross Unrealized Losses
Corporate bonds	$	14,529	$	(3)
U.S. Treasury and government-sponsored enterprises	2,848		(5)

Total	$	17,377	$	(8)

All securities presented have been in an unrealized loss position for less than 12 months. There were 14 and 9 debt securities in an unrealized loss position as of December 31, 2020 and 2019, respectively. During the years ended December 31, 2020 and 2019, we did not record an allowance for credit losses or other impairment charges on our debt securities. Based upon our quarterly impairment review, we determined that the unrealized losses were not attributed to credit risk, but were primarily associated with changes in interest rates and market liquidity. Based on the scheduled maturities of our investments, we determined that it was more likely than not that we will hold these investments for a period of time sufficient for a recovery of our cost basis.

The fair value of debt securities available-for-sale by contractual maturity was as follows (in thousands):


	December 31,
	2020		2019
Maturing in one year or less	$	1,034,150	$	789,913
Maturing after one year through five years	321,751		522,551
Total debt securities available-for-sale	$	1,355,901	$	1,312,464