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Cash, Cash Equivalents, and Investments | 3 Months Ended
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Mar. 29, 2020
Cash and Cash Equivalents [Abstract] |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following (in thousands):
| March 29, 2020 |  | December 31, 2019
Cash | $ | 225,207 |  |  | $ | 155,498 |
Money market instruments | 13,990 |  |  | 15,933 |
Cash and cash equivalents | 239,197 |  |  | 171,431 |
Asset-backed securities | 69,956 |  |  | 66,680 |
Corporate bonds | 54,937 |  |  | 65,624 |
Treasury bills | 19,763 |  |  | 92,914 |
Municipal bonds | 6,980 |  |  | 4,630 |
Certificate of deposit | 4,121 |  |  | 4,328 |
Sovereign bonds | 3,487 |  |  | 6,294 |
Current investments | 159,244 |  |  | 240,470 |
Treasury bills | 190,693 |  |  | 216,334 |
Corporate bonds | 177,869 |  |  | 146,474 |
Asset-backed securities | 51,395 |  |  | 46,403 |
Sovereign bonds | 21,083 |  |  | 16,005 |
Agency bonds | 5,915 |  |  | 5,914 |
Municipal bonds | — |  |  | 2,322 |
Non-current investments | 446,955 |  |  | 433,452 |
| $ | 845,396 |  |  | $ | 845,353 |
Asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; corporate bonds consist of debt securities issued by both domestic and foreign companies; treasury bills consist of debt securities issued by the U.S. government; municipal bonds consist of debt securities issued by state and local government entities; certificates of deposit are time deposits held by financial institutions with a fixed interest rate; sovereign bonds consist of direct debt issued by foreign governments; and agency bonds consist of domestic or foreign obligations of government agencies and government-sponsored enterprises that have government backing. All securities are denominated in U.S. Dollars and the certificate of deposit is denominated in Korean Won. On January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments,” using the modified-retrospective approach, which requires the Company to apply the standard on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the guidance is effective. The Company did not record an adjustment to retained earnings, as there were no debt securities with credit losses as of the adoption date. The following table summarizes the Company’s available-for-sale investments as of March 29, 2020 (in thousands):
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Current: |  |  |  |  |  |  |
Asset-backed securities | $ | 70,510 |  |  | $ | 25 |  |  | $ | (579 | ) |  | $ | 69,956 |
Corporate bonds | 55,404 |  |  | 20 |  |  | (487 | ) |  | 54,937 |
Treasury bills | 19,328 |  |  | 435 |  |  | — |  |  | 19,763 |
Municipal bonds | 6,944 |  |  | 36 |  |  | — |  |  | 6,980 |
Sovereign bonds | 3,485 |  |  | 2 |  |  | — |  |  | 3,487 |
Non-current: |  |  |  |  |  |  |
Treasury bills | 187,794 |  |  | 2,899 |  |  | — |  |  | 190,693 |
Corporate bonds | 183,646 |  |  | 117 |  |  | (5,894 | ) |  | 177,869 |
Asset-backed securities | 52,405 |  |  | 55 |  |  | (1,065 | ) |  | 51,395 |
Sovereign bonds | 20,944 |  |  | 147 |  |  | (8 | ) |  | 21,083 |
Agency bonds | 5,930 |  |  | — |  |  | (15 | ) |  | 5,915 |
| $ | 606,390 |  |  | $ | 3,736 |  |  | $ | (8,048 | ) |  | $ | 602,078 |
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of March 29, 2020 (in thousands):
| Unrealized Loss Position For: |  |
| Less than 12 Months |  | 12 Months or Greater |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Corporate bonds | $ | 195,755 |  |  | $ | (6,337 | ) |  | $ | 1,146 |  |  | $ | (44 | ) |  | $ | 196,901 |  |  | $ | (6,381 | )
Asset-backed securities | 108,932 |  |  | (1,640 | ) |  | 674 |  |  | (4 | ) |  | 109,606 |  |  | (1,644 | )
Sovereign bonds | 13,662 |  |  | (8 | ) |  | — |  |  | — |  |  | 13,662 |  |  | (8 | )
Agency bonds | 3,123 |  |  | (6 | ) |  | 2,792 |  |  | (9 | ) |  | 5,915 |  |  | (15 | )
| $ | 321,472 |  |  | $ | (7,991 | ) |  | $ | 4,612 |  |  | $ | (57 | ) |  | $ | 326,084 |  |  | $ | (8,048 | )
The Company recorded credit losses on debt securities totaling $160,000 during the three-month period ended March 29, 2020. No credit losses on debt securities were recorded during the three-month period ended March 31, 2019. Credit losses are included in "Other income (expense)" on the Consolidated Statement of Operations. Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $2,268,000 and $2,874,000 as of March 29, 2020 and December 31, 2019, respectively. In its evaluation to determine expected credit losses, management considered all available historical and current information, expectations of future economic conditions, the type of security, the credit rating of the security, and the size of the loss position, as well as other relevant information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before their effective maturity or market price recovery. The following table summarizes the allowance for credit losses activity for the three-month period ended March 29, 2020 (in thousands):
Balance as of December 31, 2019 | $ | — |
Increases to the allowance for credit losses | 160 |
Write-offs | — |
Balance as of March 29, 2020 | $ | 160 |
The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $1,865,000 and $15,000, respectively, during the three-month period ended March 29, 2020 and $64,000 and $24,000, respectively, during the three-month period ended March 31, 2019. These gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, are recorded in shareholders’ equity as accumulated other comprehensive loss. The following table presents the effective maturity dates of the Company’s available-for-sale investments as of March 29, 2020 (in thousands):
| <1 year |  | 1-2 Years |  | 2-3 Years |  | 3-4 Years |  | 4-5 Years |  | Total
Corporate bonds | $ | 54,937 |  |  | $ | 87,940 |  |  | $ | 80,663 |  |  | $ | 9,266 |  |  | $ | — |  |  | $ | 232,806 |
Treasury bills | 19,763 |  |  | 101,648 |  |  | 89,045 |  |  | — |  |  | — |  |  | 210,456 |
Asset-backed securities | 69,956 |  |  | 10,436 |  |  | 33,206 |  |  | 3,393 |  |  | 4,360 |  |  | 121,351 |
Sovereign bonds | 3,487 |  |  | 21,083 |  |  | — |  |  | — |  |  | — |  |  | 24,570 |
Municipal bonds | 6,980 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,980 |
Agency bonds | — |  |  | — |  |  | 5,915 |  |  | — |  |  | — |  |  | 5,915 |
| $ | 155,123 |  |  | $ | 221,107 |  |  | $ | 208,829 |  |  | $ | 12,659 |  |  | $ | 4,360 |  |  | $ | 602,078 |

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- Definition The entire disclosure for cash, cash equivalents, investments in debt and equity instruments (including cost and equity investees and related income statement amounts), equity and cost method investments, investments in joint ventures and any other investment. + References No definition available. + Details
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