Cash and Investments

9 Months Ended

Oct. 01, 2021

Investments, Debt and Equity Securities [Abstract]

Cash, Cash Equivalents and Restricted Cash Equivalents

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


	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	567,325	$	319,217

Restricted cash equivalents included in other long-term assets	31,163		1,555
Cash, cash equivalents, and restricted cash equivalents as reported in the accompanying Condensed Consolidated Statements of Cash Flows	$	598,488	$	320,772

Restricted cash equivalents are used to collateralize letters of credit and consist of money-market funds and certificates of deposit with original maturities of 90 days or less. The restricted cash equivalents are classified as other long-term assets based upon the remaining term of the underlying restriction. As of September 30, 2021, restricted cash equivalents included $29.6 million of short-term investments, which is collateral under our January 2021 standby letter of

credit to guarantee our obligation to fund a portion of the total tenant improvements related to our build-to-suit lease at our corporate campus. As we fund these tenant improvements, our restricted cash becomes available for operations.

Cash, Cash Equivalents, Restricted Cash Equivalents and Investments

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


	September 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale:
Commercial paper	$	886,323	$	73	$	—	$	886,396
Corporate bonds	503,707		1,967		(126)		505,548
U.S. Treasury and government-sponsored enterprises	58,965		21		(1)		58,985
Municipal bonds	10,670		41		—		10,711
Total debt securities available-for-sale	1,459,665		2,102		(127)		1,461,640
Cash	80,828		—		—		80,828
Money market funds	119,538		—		—		119,538
Certificates of deposit	134,106		—		—		134,106
Total cash, cash equivalents, restricted cash equivalents and investments	$	1,794,137	$	2,102	$	(127)	$	1,796,112


	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, cash equivalents, restricted cash equivalents and investments	$	1,532,923	$	5,931	$	(12)	$	1,538,842

Interest receivable was $2.6 million and $4.5 million as of September 30, 2021 and December 31, 2020, respectively, and is included in prepaid expenses and other current assets in the accompanying Condensed Consolidated Balance Sheets.

Realized gains and losses on the sales of investments were insignificant during the three and nine months ended September 30, 2021 and 2020.

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):


	September 30, 2021
	Fair Value		Gross Unrealized Losses

Corporate bonds	$	136,319	$	(126)
U.S. Treasury and government-sponsored enterprises	10,007		(1)

Total	$	146,326	$	(127)


	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)

All securities presented have been in an unrealized loss position for less than 12 months. There were 41 and 14 investments in an unrealized loss position as of September 30, 2021 and December 31, 2020, respectively. During the nine months ended September 30, 2021 and 2020, we did not record an allowance for credit losses or other impairment charges on our investment 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):


	September 30, 2021		December 31, 2020
Maturing in one year or less	$	1,103,122	$	1,034,150
Maturing after one year through five years	358,518		321,751
Total debt securities available-for-sale	$	1,461,640	$	1,355,901