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Cash, Cash Equivalents, and Investments | 9 Months Ended
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Sep. 27, 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):
| September 27, 2020 |  | December 31, 2019
Cash | $ | 294,430 |  |  | $ | 155,498 |
Money market instruments | 3,926 |  |  | 15,933 |
Cash and cash equivalents | 298,356 |  |  | 171,431 |
Corporate bonds | 43,436 |  |  | 65,624 |
Asset-backed securities | 34,536 |  |  | 66,680 |
Sovereign bonds | 16,086 |  |  | 6,294 |
Municipal bonds | 1,307 |  |  | 4,630 |
Treasury bills | — |  |  | 92,914 |
Certificate of deposit | — |  |  | 4,328 |
Current investments | 95,365 |  |  | 240,470 |
Treasury bills | 270,091 |  |  | 216,334 |
Corporate bonds | 216,451 |  |  | 146,474 |
Asset-backed securities | 95,007 |  |  | 46,403 |
Agency bonds | 28,274 |  |  | 5,914 |
Sovereign bonds | 8,410 |  |  | 16,005 |
Municipal bonds | 1,110 |  |  | 2,322 |
Non-current investments | 619,343 |  |  | 433,452 |
| $ | 1,013,064 |  |  | $ | 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; sovereign bonds consist of direct debt issued by foreign governments; 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; 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, with the exception of the certificate of deposit held as of December 31, 2019 that was denominated in Korean Won. Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $1,912,000 and $2,874,000 as of September 27, 2020 and December 31, 2019, respectively. 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 September 27, 2020 (in thousands):
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Current: |  |  |  |  |  |  |
Corporate bonds | $ | 43,208 |  |  | $ | 254 |  |  | $ | (26) |  |  | $ | 43,436 |
Asset-backed securities | 34,277 |  |  | 259 |  |  | — |  |  | 34,536 |
Sovereign bonds | 15,978 |  |  | 108 |  |  | — |  |  | 16,086 |
Municipal bonds | 1,298 |  |  | 9 |  |  | — |  |  | 1,307 |
Non-current: |  |  |  |  |  |  |
Treasury bills | 268,071 |  |  | 2,030 |  |  | (10) |  |  | 270,091 |
Corporate bonds | 213,850 |  |  | 2,717 |  |  | (116) |  |  | 216,451 |
Asset-backed securities | 94,270 |  |  | 737 |  |  | — |  |  | 95,007 |
Agency bonds | 28,193 |  |  | 81 |  |  | — |  |  | 28,274 |
Sovereign bonds | 8,349 |  |  | 61 |  |  | — |  |  | 8,410 |
Municipal bonds | 1,105 |  |  | 5 |  |  | — |  |  | 1,110 |
| $ | 708,599 |  |  | $ | 6,261 |  |  | $ | (152) |  |  | $ | 714,708 |
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 September 27, 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 | $ | 42,058 |  |  | $ | (142) |  |  | $ | — |  |  | $ | — |  |  | $ | 42,058 |  |  | $ | (142) |
Treasury bills | 11,543 |  |  | (10) |  |  | — |  |  | — |  |  | 11,543 |  |  | (10) |
| $ | 53,601 |  |  | $ | (152) |  |  | $ | — |  |  | $ | — |  |  | $ | 53,601 |  |  | $ | (152) |
The Company recorded no gross credit losses or gross credit recoveries on debt securities for the three-month period ended September 27, 2020, and $160,000 and $85,000, respectively, for the nine-month period ended September 27, 2020. No credit losses or recoveries on debt securities were recorded for the three-month or nine-month periods ended September 29, 2019. Credit losses and recoveries are included in "Other income (expense)" on the Consolidated Statements of Operations. The following table summarizes the allowance for credit losses activity for the nine-month period ended September 27, 2020 (in thousands):
Balance as of December 31, 2019 | $ | — |
Increases to the allowance for credit losses | 160 |
Decreases to the allowance for credit losses | (85) |
Write-offs | — |
Balance as of September 27, 2020 | $ | 75 |
The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $787,000 and $1,000, respectively, for the three-month period ended September 27, 2020, and $361,000 and $67,000, respectively, for the three-month period ended September 29, 2019. The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $3,613,000 and $22,000, respectively, for the nine-month period ended September 27, 2020, and $818,000 and $103,000, respectively, for the nine-month period ended September 29, 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 September 27, 2020 (in thousands):
| <1 year |  | 1-2 Years |  | 2-3 Years |  | 3-4 Years |  | 4-5 Years |  |  |  | Total
Treasury bills | $ | — |  |  | $ | 167,677 |  |  | $ | 98,353 |  |  | $ | 4,061 |  |  | $ | — |  |  |  |  | $ | 270,091 |
Corporate bonds | 43,436 |  |  | 86,619 |  |  | 126,966 |  |  | 2,866 |  |  | — |  |  |  |  | 259,887 |
Asset-backed securities | 34,536 |  |  | 45,513 |  |  | 45,457 |  |  | 52 |  |  | 3,985 |  |  |  |  | 129,543 |
Agency bonds | — |  |  | 5,933 |  |  | 22,341 |  |  | — |  |  | — |  |  |  |  | 28,274 |
Sovereign bonds | 16,086 |  |  | 4,973 |  |  | 3,437 |  |  | — |  |  | — |  |  |  |  | 24,496 |
Municipal bonds | 1,307 |  |  | 1,110 |  |  | — |  |  | — |  |  | — |  |  |  |  | 2,417 |
| $ | 95,365 |  |  | $ | 311,825 |  |  | $ | 296,554 |  |  | $ | 6,979 |  |  | $ | 3,985 |  |  |  |  | $ | 714,708 |

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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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