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Investments

3 Months Ended

Sep. 27, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Investments consist of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, variable rate demand notes, commercial paper and certificates of deposit. All short-term investments are classified as available-for-sale. Other long-term investments consist of the Company's ownership interest in Lextar.

Short-term investments as of September 27, 2020 and June 28, 2020 consisted of the following:

						September 27, 2020
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Credit Loss Allowance (1)						Estimated Fair Value
Municipal bonds						$119.6						$2.3						$—						$—						$121.9
Corporate bonds						456.3						6.2						—						—						462.5
U.S. agency securities						18.2						—						(0.1)						—						18.1
U.S. treasury securities						58.9						0.5						—						—						59.4
Certificates of deposit						33.7						—						—						—						33.7
Commercial paper						6.5						—						—						—						6.5
Total short-term investments						$693.2						$9.0						($0.1)						$—						$702.1
												June 28, 2020
												Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses (2)						Estimated Fair Value
Municipal bonds												$130.0						$2.0						$—						$132.0
Corporate bonds												473.8						6.3						—						480.1
U.S. agency securities												29.1						—						—						29.1
U.S. treasury securities												52.3						0.6						—						52.9
Certificates of deposit												95.3						—						—						95.3
Variable rate demand note												2.5						—						—						2.5
Commercial paper												11.0						—						—						11.0
Total short-term investments												$794.0						$8.9						$—						$802.9

(1) Credit loss allowance is applicable beginning in the first quarter of fiscal 2021 due to adoption of ASU 2016-13, which replaced the Company's other than temporary impairment analysis with an expected credit losses model.

(2) The Company had an unrealized loss of less than $0.1 million as of June 28, 2020.

The Company does not include accrued interest in estimated fair values of short-term investments and does not record an allowance for credit losses on receivables related to accrued interest. Accrued interest receivable was $4.1 million and $4.3 million as of September 27, 2020 and June 28, 2020, respectively, and is recorded in other current assets on the consolidated balance sheets. When necessary, write offs of noncollectable interest income are recorded as a reversal to interest income. There were no write offs of noncollectable interest income for each of the three month periods ended September 27, 2020 and September 29, 2019.

The following tables present the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position:

						September 27, 2020
						Less than 12 Months												Greater than 12 Months												Total
						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Municipal bonds						$4.0						$—						$—						$—						$4.0						$—
Corporate bonds						7.8						—						—						—						7.8						—
U.S. agency securities						16.0						(0.1)						—						—						16.0						(0.1)
U.S. treasury securities						23.8						—						—						—						23.8						—
Total						$51.6						($0.1)						$—						$—						$51.6						($0.1)
Number of securities with an unrealized loss												16												—												16
						June 28, 2020
						Less than 12 Months												Greater than 12 Months												Total
						Fair Value						Unrealized Loss (1)						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Municipal bonds						$14.3						$—						$—						$—						$14.3						$—
Corporate bonds						29.1						—						—						—						29.1						—
U.S. agency securities						8.6						—						—						—						8.6						—
U.S. treasury securities						13.8						—						—						—						13.8						—
Total						$65.8						$—						$—						$—						$65.8						$—
Number of securities with an unrealized loss												46												—												46

(1) Securities with an unrealized loss of less than 12 months as of June 28, 2020 have an unrealized loss value of less than $0.1 million, individually and in the aggregate.

The Company utilizes specific identification in computing realized gains and losses on the sale of investments. There were less than $0.1 million of realized losses on the sale of investments for each of the three month periods ended September 27, 2020 and September 29, 2019. Realized losses are included in non-operating expense in the consolidated statements of operations. Unrealized gains and losses are included as a separate component of equity, net of tax, unless the Company evaluates there is an expected credit loss.

The Company evaluates its investments for expected credit losses. The Company believes it is able to and intends to hold each of the investments held with an unrealized loss as of September 27, 2020 until the investments fully recover in market value. None of the investments with an unrealized loss as of September 27, 2020 had credit downgrades in the current period. No allowance for credit losses was recorded as of September 27, 2020.

The contractual maturities of short-term investments as of September 27, 2020 were as follows:

						Within One Year						After One, Within Five Years						After Five, Within Ten Years						After Ten Years						Total
Municipal bonds						$24.1						$97.8						$—						$—						$121.9
Corporate bonds						197.1						265.4						—						—						462.5
U.S. agency securities						8.5						9.6						—						—						18.1
U.S. treasury securities						44.7						14.7						—						—						59.4
Certificates of deposit						33.7						—						—						—						33.7
Commercial paper						6.5						—						—						—						6.5
Total short-term investments						$314.6						$387.5						$—						$—						$702.1

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- References

No definition available.

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- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2209399

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2324412

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI http://asc.fasb.org/topic&trid=2196928

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2176304

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