Short Term Investments

9 Months Ended

Jul. 02, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

Our short-term investments are classified as available-for-sale and are summarized in the tables below (in thousands):


	July 2, 2021
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Aggregate Fair Value
Corporate bonds	$	60,318	$	162	$	(118)	$	60,362
Commercial paper	104,376		33		(5)		104,404
Total short-term investments	$	164,694	$	195	$	(123)	$	164,766


	October 2, 2020
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Aggregate Fair Value
Corporate bonds	$	68,605	$	348	$	(333)	$	68,620
Commercial paper	134,913		192		(14)		135,091
Total short-term investments	$	203,518	$	540	$	(347)	$	203,711

The contractual maturities of available-for-sale investments were as follows (in thousands):


	July 2, 2021
Less than one year	$	106,885
Over one year	57,881
Total available-for-sale investments	$	164,766

Available-for-sale investments are reported at fair value and, as such, their associated unrealized gains and losses are reported as a separate component of stockholders’ equity within accumulated other comprehensive income.

Other Investments — As of July 2, 2021, we held two non-marketable equity investments classified as long-term investments, including an investment in a Series B preferred stock ownership of a privately held manufacturing corporation with preferred liquidation rights over other equity shares. As the equity securities do not have a readily determinable fair value and do not qualify for the practical expedient under Accounting Standards Codification (“ASC”) 820, Fair Value Measurement, we have elected to account for this investment at cost less any impairment. We evaluate this investment for impairment at each balance sheet date. As of July 2, 2021 and October 2, 2020, the carrying value of this investment was $2.5 million.

Also included in long-term investments, is a non-controlling investment of less than 10% in the outstanding equity of a private company, Ampere Computing Holdings LLC (“Compute”), that was acquired in conjunction with our divestiture of the Compute business during our fiscal year 2018. This investment’s carrying value is updated quarterly based on our proportionate share of the gains or losses, as well as any changes in Compute's equity, utilizing the equity method. We are a passive investor with limited rights and are not engaged in the operating activities of Compute. One of Compute’s other limited liability company members has a call option right to purchase all of our equity on or before October 27, 2021 and prior to 45 days thereafter, at either fair market value at the time of exercise or for a maximum fixed price of approximately $128 million which may not represent fair market value. We have no control and cannot predict when or if this call option will be exercised, whether our equity position will become liquid or whether it will become further diluted due to capital structure changes to Compute. Any gain or loss from an exercise of a call option would be recognized at the time it is realized.

During the three and nine months ended July 2, 2021, we recorded net losses of $2.0 million and $0.3 million, respectively, associated with this investment as other expense in our condensed consolidated statements of operations. The nine months ended July 2, 2021 include a non-cash gain of $9.8 million associated with changes in Compute's equity. During the three and nine months ended July 3, 2020, we recorded losses of $4.6 million and $13.6 million, respectively. As of July 2, 2021 and October 2, 2020, the carrying value of this investment was $14.9 million and $15.2 million, respectively.