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Investments

9 Months Ended

Mar. 28, 2021

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 ENNOSTAR (formerly Lextar).

Short-term investments as of March 28, 2021 and June 28, 2020 consisted of the following:

						March 28, 2021
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses (1)						Credit Loss Allowance (2)						Estimated Fair Value
Municipal bonds						$135.6						$2.0						$—						$—						$137.6
Corporate bonds						470.5						3.8						(0.2)						—						474.1
U.S. agency securities						15.3						—						—						—						15.3
U.S. treasury securities						69.4						0.3						—						—						69.7
Certificates of deposit						12.8						—						—						—						12.8
Variable rate demand note						11.0						—						—						—						11.0
Commercial paper						41.2						—						—						—						41.2
Total short-term investments						$755.8						$6.1						($0.2)						$—						$761.7
												June 28, 2020
												Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses (1)						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												83.3						—						—						83.3
Variable rate demand note												2.5						—						—						2.5
Commercial paper												11.0						—						—						11.0
Total short-term investments												$782.0						$8.9						$—						$790.9

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

(2) 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.

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 $4.0 million and $4.3 million as of March 28, 2021 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 and nine month periods ended March 28, 2021 and March 29, 2020.

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:

						March 28, 2021
						Less than 12 Months												Greater than 12 Months												Total
						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Municipal bonds						$6.4						$—						$—						$—						$6.4						$—
Corporate bonds						113.4						(0.2)						—						—						113.4						(0.2)
U.S. agency securities						13.2						—						—						—						13.2						—
U.S. treasury securities						19.4						—						—						—						19.4						—
Certificates of deposit						0.7						—						—						—						0.7						—
Total						$153.1						($0.2)						$—						$—						$153.1						($0.2)
Number of securities with an unrealized loss												104												—												104
						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 for the period 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. Realized gains of $0.1 million and $0.3 million for the three and nine months ended March 28, 2021 and realized gains of $0.9 million and $1.0 million for the three and nine months ended March 29, 2020 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 determines 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 March 28, 2021 until the investments fully recover in market value. None of the investments with an unrealized loss as of March 28, 2021 had credit downgrades in the current period. No allowance for credit losses was recorded as of March 28, 2021.

The contractual maturities of short-term investments as of March 28, 2021 were as follows:

						Within One Year						After One, Within Five Years						After Five, Within Ten Years						After Ten Years						Total
Municipal bonds						$25.9						$111.7						$—						$—						$137.6
Corporate bonds						120.5						353.6						—						—						474.1
U.S. agency securities						3.0						12.3						—						—						15.3
U.S. treasury securities						9.6						60.1						—						—						69.7
Certificates of deposit						12.8						—						—						—						12.8
Variable rate demand note						—						—						—						11.0						11.0
Commercial paper						41.2						—						—						—						41.2
Total short-term investments						$213.0						$537.7						$—						$11.0						$761.7

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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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