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Investments

9 Months Ended

Mar. 27, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Short-term investments consist of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, non-U.S. government 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 March 27, 2022 and June 27, 2021 consisted of the following (in millions of U.S. Dollars):

						March 27, 2022
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Credit Loss Allowance						Estimated Fair Value
Municipal bonds						$173.5						$0.1						($3.1)						$—						$170.5
Corporate bonds						478.0						0.1						(12.0)						—						466.1
U.S. agency securities						4.0						—						(0.1)						—						3.9
U.S. treasury securities						99.0						—						(0.3)						—						98.7
Non-U.S. government securities						7.7						—						(0.3)						—						7.4
Commercial paper						29.0						—						—						—						29.0
Variable rate demand notes						24.6						—						—						—						24.6
Total short-term investments						$815.8						$0.2						($15.8)						$—						$800.2
						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 $4.4 million and $5.5 million as of March 27, 2022 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 and nine months ended March 27, 2022 and March 28, 2021.

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 (in millions of U.S. Dollars):

						March 27, 2022
						Less than 12 Months												Greater than 12 Months												Total
						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Municipal bonds						$154.5						($3.1)						$1.0						$—						$155.5						($3.1)
Corporate bonds						435.8						(12.0)						7.1						(0.3)						442.9						(12.3)
U.S. agency securities						3.9						(0.1)						—						—						3.9						(0.1)
U.S. treasury securities						59.7						(0.3)						—						—						59.7						(0.3)
Total						$653.9						($15.5)						$8.1						($0.3)						$662.0						($15.8)
Number of securities with an unrealized loss												344												4												348
						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						$13.4						$—						$—						$—						$13.4						$—
Corporate bonds						133.8						(0.3)						—						—						133.8						(0.3)
U.S. agency securities						10.7						—						—						—						10.7						—
U.S. treasury securities						47.9						(0.1)						—						—						47.9						(0.1)
Certificates of deposit						0.7						—						—						—						0.7						—
Total						$206.5						($0.4)						$—						$—						$206.5						($0.4)
Number of securities with an unrealized loss												128												—												128

Additionally, the Company held cash equivalent securities in unrealized loss positions as of March 27, 2022 and June 27, 2021. As of March 27, 2022, the Company held six cash equivalent securities in unrealized loss positions with an aggregate fair value of $53.9 million and an aggregate unrealized loss of less than $0.1 million. As of June 27, 2021, the Company held six cash equivalent securities in unrealized loss positions with an aggregate fair value of $21.4 million and an aggregate unrealized loss of less than $0.1 million. All cash equivalents in unrealized loss positions as of March 27, 2022 and June 27, 2021 have been in unrealized loss positions for less than 12 months.

The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains of less than $0.1 million and $0.3 million for the three and nine months ended March 27, 2022, respectively, and $0.1 million and $0.3 million for the three and nine months ended March 28, 2021, 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 March 27, 2022 until the investments fully recover in market value. No allowance for credit losses was recorded as of March 27, 2022.

The contractual maturities of short-term investments as of March 27, 2022 were as follows:

 

(in millions of U.S. Dollars)						Within One Year						After One, Within Five Years						After Five, Within Ten Years						After Ten Years						Total
Municipal bonds						$39.4						$131.1						$—						$—						$170.5
Corporate bonds						97.5						368.6						—						—						466.1
U.S. agency securities						2.0						1.9						—						—						3.9
U.S. treasury securities						67.0						31.7						—						—						98.7
Non-U.S. government securities						—						—						7.4						—						7.4
Commercial paper						29.0						—						—						—						29.0
Variable rate demand notes						—						—						—						24.6						24.6
Total short-term investments						$234.9						$533.3						$7.4						$24.6						$800.2

X

- 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

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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