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Investments

3 Months Ended

Sep. 26, 2021

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Investments consist of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, certificates of deposit, commercial paper and variable rate demand notes. All short-term investments are classified as available-for-sale.

Short-term investments as of September 26, 2021 and June 27, 2021 consisted of the following:

						September 26, 2021
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Credit Loss Allowance						Estimated Fair Value
Municipal bonds						$135.7						$1.7						$—						$—						$137.4
Corporate bonds						366.9						2.6						(0.2)						—						369.3
U.S. agency securities						13.8						—						—						—						13.8
U.S. treasury securities						46.1						0.2						—						—						46.3
Certificates of deposit						9.5						—						—						—						9.5
Variable rate demand notes						20.0						—						—						—						20.0
Total short-term investments						$592.0						$4.5						($0.2)						$—						$596.3
						June 27, 2021
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Credit Loss Allowance						Estimated Fair Value
Municipal bonds						$139.4						$1.9						$—						$—						$141.3
Corporate bonds						456.5						3.3						(0.3)						—						459.5
U.S. agency securities						15.8						—						—						—						15.8
U.S. treasury securities						72.3						0.3						(0.1)						—						72.5
Certificates of deposit						16.5						—						—						—						16.5
Commercial paper						50.0						—						—						—						50.0
Variable rate demand notes						20.0						—						—						—						20.0
Total short-term investments						$770.5						$5.5						($0.4)						$—						$775.6

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 $5.5 million as of September 26, 2021 and June 27, 2021, 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 during the three months ended September 26, 2021 and September 27, 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:

						September 26, 2021
						Less than 12 Months												Greater than 12 Months												Total
						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Municipal bonds						$14.0						$—						$—						$—						$14.0						$—
Corporate bonds						94.1						(0.2)						—						—						94.1						(0.2)
U.S. agency securities						7.7						—						—						—						7.7						—
U.S. treasury securities						20.8						—						—						—						20.8						—
Total						$136.6						($0.2)						$—						$—						$136.6						($0.2)
Number of securities with an unrealized loss												75												—												75
						June 27, 2021
						Less than 12 Months												Greater than 12 Months												Total
						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Municipal bonds						$28.8						$—						$—						$—						$28.8						$—
Corporate bonds						133.8						(0.3)						—						—						133.8						(0.3)
U.S. agency securities						16.7						—						—						—						16.7						—
U.S. treasury securities						47.9						(0.1)						—						—						47.9						(0.1)
Certificates of deposit						0.7						—						—						—						0.7						—
Total						$227.9						($0.4)						$—						$—						$227.9						($0.4)
Number of securities with an unrealized loss												134												—												134

The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains of $0.2 million and less than $0.1 million for the three months ended September 26, 2021 and September 27, 2020, respectively, are included in non-operating expense, net 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 September 26, 2021 until the investments fully recover in market value. No allowance for credit losses was recorded as of September 26, 2021.

The contractual maturities of short-term investments as of September 26, 2021 were as follows:

 

						Within One Year						After One, Within Five Years						After Five, Within Ten Years						After Ten Years						Total
Municipal bonds						$27.5						$109.9						$—						$—						$137.4
Corporate bonds						65.5						303.8						—						—						369.3
U.S. agency securities						5.5						8.3						—						—						13.8
U.S. treasury securities						16.6						29.7						—						—						46.3
Certificates of deposit						9.5						—						—						—						9.5
Variable rate demand notes						—						—						—						20.0						20.0
Total short-term investments						$124.6						$451.7						$—						$20.0						$596.3

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- References

No definition available.

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X

- 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

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1403
-Paragraph (b)

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