Cash, Cash Equivalents, and Investments

3 Months Ended

Apr. 03, 2022

Cash and Cash Equivalents [Abstract]

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


	April 3, 2022		December 31, 2021
Cash	$	158,285	$	185,624

Treasury bills	7,001		—
Money market instruments	483		537
Cash and cash equivalents	165,769		186,161
Corporate bonds	97,772		73,088
Asset-backed securities	37,084		37,655
Treasury bills	10,204		18,912
Agency bonds	2,801		2,802
Municipal bonds	1,105		4,998




Current investments	148,966		137,455
Corporate bonds	414,366		481,218
Asset-backed securities	36,211		43,940
Agency bonds	15,834		16,077
Treasury bills	10,383		39,753
Sovereign bonds	2,007		2,119
Municipal bonds	628		641


Non-current investments	479,429		583,748
	$	794,164	$	907,364

Treasury bills consist of debt securities issued by the U.S. government; corporate bonds consist of debt securities issued by both domestic and foreign companies; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; agency bonds consist of domestic or foreign obligations of government agencies and government-sponsored enterprises that have government backing; municipal bonds consist of debt securities issued by state and local government entities; and sovereign bonds consist of direct debt issued by foreign governments. All of the Company's securities as of April 3, 2022 and December 31, 2021 were denominated in U.S. Dollars.

Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $2,940,000 and $3,037,000 as of April 3, 2022 and December 31, 2021, respectively.

The following table summarizes the Company’s available-for-sale investments as of April 3, 2022 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Current:
Corporate bonds	$	98,122	$	58	$	(408)	$	97,772
Asset-backed securities	37,300		12		(228)		37,084


Treasury bills	10,247		—		(43)		10,204
Agency bonds	2,800		1		—		2,801
Municipal bonds	1,105		—		—		1,105

Non-current:
Corporate bonds	433,204		8		(18,846)		414,366
Asset-backed securities	37,579		—		(1,368)		36,211
Agency bonds	16,133		—		(299)		15,834
Treasury bills	10,592		1		(210)		10,383
Sovereign bonds	2,130		—		(123)		2,007
Municipal bonds	635		—		(7)		628
	$	649,847	$	80	$	(21,532)	$	628,395

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 April 3, 2022 (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	$	425,643	$	(17,258)	$	45,219	$	(1,996)	$	470,862	$	(19,254)
Asset-backed securities	65,603		(1,592)		556		(4)		66,159		(1,596)
Treasury bills	15,982		(250)		102		(3)		16,084		(253)
Agency bonds	15,834		(299)		—		—		15,834		(299)
Sovereign bonds	2,007		(123)		—		—		2,007		(123)
Municipal bonds	1,733		(7)		—		—		1,733		(7)


	$	526,802	$	(19,529)	$	45,877	$	(2,003)	$	572,679	$	(21,532)

Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of April 3, 2022 or December 31, 2021. There was no activity recorded in the allowance for credit losses during the three-month periods ended April 3, 2022 or April 4, 2021.

The Company recorded gross realized gains and losses on the sale of debt securities totaling $118,000 and $154,000, respectively, for the three-month period ended April 3, 2022, and no gross realized gains or losses on the sale of debt securities for the three-month period ended April 4, 2021. Realized 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, were 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 April 3, 2022 (in thousands):


	<1 year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		Total
Corporate bonds	$	97,772	$	175,124	$	168,060	$	47,259	$	23,923	$	512,138
Asset-backed securities	37,084		21,883		—		14,328		—		73,295
Treasury bills	10,204		10,383		—		—		—		20,587


Agency bonds	2,801		15,834		—		—		—		18,635
Sovereign bonds	—		—		1,007		1,000		—		2,007
Municipal bonds	1,105		628		—		—		—		1,733


	$	148,966	$	223,852	$	169,067	$	62,587	$	23,923	$	628,395