SILICON LABORATORIES INC. [SLAB] Filings

10-Q 1 slab-20220702x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number: 000-29823

SILICON LABORATORIES INC.

(Exact name of registrant as specified in its charter)

Delaware		74-2793174
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


400 West Cesar Chavez, Austin, Texas		78701
(Address of principal executive offices)		(Zip Code)

(512) 416-8500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	SLAB	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☑ No

As of July 19, 2022, 34,223,488 shares of common stock of Silicon Laboratories Inc. were outstanding.

Table of Contents


Part I. Financial Information		Page Number

Item 1.	Financial Statements (Unaudited):

	Condensed Consolidated Balance Sheets at July 2, 2022 and January 1, 2022	3

	Condensed Consolidated Statements of Income for the three and six months ended July 2, 2022 and July 3, 2021	4

	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 2, 2022 and July 3, 2021	5

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended July 2, 2022 and July 3, 2021	6

	Condensed Consolidated Statements of Cash Flows for the six months ended July 2, 2022 and July 3, 2021	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

Item 4.	Controls and Procedures	28

Part II. Other Information

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	29

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43

Item 3.	Defaults Upon Senior Securities	43

Item 4.	Mine Safety Disclosures	43

Item 5.	Other Information	43

Item 6.	Exhibits	44

Cautionary Statement

Except for the historical financial information contained herein, the matters discussed in this report on Form 10-Q (as well as documents incorporated herein by reference) may be considered “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include declarations regarding the intent, belief or current expectations of Silicon Laboratories Inc. and its management and may be signified by the words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan,” “project,” “will” or similar language. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements. Factors that could cause or contribute to such differences include those discussed under “Risk Factors” and elsewhere in this report. Silicon Laboratories disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Part I. Financial Information

Item 1. Financial Statements

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)


	July 2,		January 1,
	2022		2022
Assets
Current assets:
Cash and cash equivalents	$	504,850	$	1,074,623
Short-term investments		972,845		964,582
Accounts receivable, net		72,106		98,313
Inventories		74,026		49,307
Prepaid expenses and other current assets		86,138		51,748
Total current assets		1,709,965		2,238,573
Property and equipment, net		149,447		146,516
Goodwill		376,389		376,389
Other intangible assets, net		99,784		118,978
Other assets, net		83,813		77,839
Total assets	$	2,419,398	$	2,958,295
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	95,365	$	47,327
Current portion of convertible debt, net		—		450,599
Deferred revenue and returns liability		10,696		13,849
Other current liabilities		126,058		157,052
Total current liabilities		232,119		668,827
Convertible debt, net		528,564		—
Other non-current liabilities		53,371		77,044
Total liabilities		814,054		745,871
Commitments and contingencies
Stockholders’ equity:
Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued		—		—
Common stock – $0.0001 par value; 250,000 shares authorized; 34,223 and 38,481 shares issued and outstanding at July 2, 2022 and January 1, 2022, respectively		3		4
Retained earnings		1,619,396		2,214,839
Accumulated other comprehensive loss		(14,055)		(2,419)
Total stockholders’ equity		1,605,344		2,212,424
Total liabilities and stockholders’ equity	$	2,419,398	$	2,958,295

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Silicon Laboratories Inc.

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)


	Three Months Ended				Six Months Ended
	July 2,		July 3,		July 2,		July 3,
	2022		2021		2022		2021
Revenues	$	263,150	$	169,492	$	496,964	$	327,349
Cost of revenues		99,247		73,194		177,289		139,297
Gross profit		163,903		96,298		319,675		188,052
Operating expenses:
Research and development		83,511		64,832		161,053		128,847
Selling, general and administrative		49,013		42,953		93,660		85,407
Operating expenses		132,524		107,785		254,713		214,254
Operating income (loss)		31,379		(11,487)		64,962		(26,202)
Other income (expense):
Interest income and other, net		3,445		475		4,944		1,624
Interest expense		(1,667)		(6,486)		(3,347)		(17,810)
Income (loss) from continuing operations before income taxes		33,157		(17,498)		66,559		(42,388)
Provision for income taxes		10,994		1,165		22,683		3,157
Equity-method earnings		(28)		172		1,166		1,898
Income (loss) from continuing operations		22,135		(18,491)		45,042		(43,647)
Income from discontinued operations, net of income taxes		—		38,423		—		77,088

Net income	$	22,135	$	19,932	$	45,042	$	33,441

Basic earnings (loss) per share:
Continuing operations	$	0.62	$	(0.41)	$	1.22	$	(0.98)
Net income	$	0.62	$	0.44	$	1.22	$	0.75

Diluted earnings (loss) per share:
Continuing operations	$	0.60	$	(0.41)	$	1.18	$	(0.98)
Net income	$	0.60	$	0.44	$	1.18	$	0.73

Weighted-average common shares outstanding:
Basic		35,722		44,803		36,862		44,481
Diluted		36,604		45,756		38,063		45,794

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Silicon Laboratories Inc.

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)


	Three Months Ended				Six Months Ended
	July 2,		July 3,		July 2,		July 3,
	2022		2021		2022		2021
Net income	$	22,135	$	19,932	$	45,042	$	33,441
Other comprehensive loss, before tax
Net changes to available-for-sale securities
Unrealized losses arising during the period		(3,013)		(564)		(12,705)		(1,400)
Reclassification for (gains) losses included in net income		374		(39)		423		(397)

Net changes to cash flow hedges
Unrealized gains (losses) arising during the period		(3,001)		388		(3,545)		(269)
Reclassification for (gains) losses included in net income		1,092		(160)		1,092		(320)
Other comprehensive loss, before tax		(4,548)		(375)		(14,735)		(2,386)

Provision (benefit) for income taxes		(959)		(78)		(3,099)		(501)

Other comprehensive loss		(3,589)		(297)		(11,636)		(1,885)

Comprehensive income	$	18,546	$	19,635	$	33,406	$	31,556

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Silicon Laboratories Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(In thousands)

(Unaudited)


				Additional				Accumulated Other		Total
		Common		Paid-In		Retained		Comprehensive		Stockholders’
Three Months Ended July 2, 2022	Shares	Stock		Capital		Earnings		Income (Loss)		Equity
Balance as of April 2, 2022	37,204	$	4	$	—	$	2,018,117	$	(10,466)	$	2,007,655
Net income	—		—		—		22,135		—		22,135
Other comprehensive loss	—		—		—		—		(3,589)		(3,589)
Stock issuances, net of shares withheld for taxes	159		—		1,161		—		—		1,161
Repurchases of common stock	(3,140)		(1)		(15,561)		(420,856)		—		(436,418)
Stock-based compensation	—		—		14,400		—		—		14,400
Balance as of July 2, 2022	34,223	$	3	$	—	$	1,619,396	$	(14,055)	$	1,605,344


				Additional				Accumulated Other		Total
		Common		Paid-In		Retained		Comprehensive		Stockholders’
Three Months Ended July 3, 2021	Shares	Stock		Capital		Earnings		Income (Loss)		Equity
Balance as of April 3, 2021	44,749	$	4	$	199,576	$	1,007,173	$	226	$	1,206,979
Net income	—		—		—		19,932		—		19,932
Other comprehensive loss	—		—		—		—		(297)		(297)
Stock issuances, net of shares withheld for taxes	157		—		6,473		—		—		6,473
Repurchases of common stock	(142)		—		(18,982)		—		—		(18,982)
Stock-based compensation	—		—		13,649		—		—		13,649
Balance as of July 3, 2021	44,764	$	4	$	200,716	$	1,027,105	$	(71)	$	1,227,754


				Additional				Accumulated Other		Total
		Common		Paid-In		Retained		Comprehensive		Stockholders’
Six Months Ended July 2, 2022	Shares	Stock		Capital		Earnings		Income (Loss)		Equity
Balance as of January 1, 2022	38,481	$	4	$	—	$	2,214,839	$	(2,419)	$	2,212,424
Cumulative effect of adoption of accounting standard	—		—		—		(59,963)		—		(59,963)
Net income	—		—		—		45,042		—		45,042
Other comprehensive loss	—		—		—		—		(11,636)		(11,636)
Stock issuances, net of shares withheld for taxes	301		—		(7,593)		—		—		(7,593)
Repurchases of common stock	(4,559)		(1)		(19,675)		(580,522)		—		(600,198)
Stock-based compensation	—		—		27,268		—		—		27,268
Balance as of July 2, 2022	34,223	$	3	$	—		1,619,396	$	(14,055)	$	1,605,344


				Additional				Accumulated Other		Total
		Common		Paid-In		Retained		Comprehensive		Stockholders’
Six Months Ended July 3, 2021	Shares	Stock		Capital		Earnings		Income (Loss)		Equity
Balance as of January 2, 2021	43,925	$	4	$	204,359	$	993,664	$	1,814	$	1,199,841
Net income	—		—		—		33,441		—		33,441
Other comprehensive loss	—		—		—		—		(1,885)		(1,885)
Stock issuances, net of shares withheld for taxes	453		—		(11,344)		—		—		(11,344)
Repurchases of common stock	(142)		—		(18,982)		—		—		(18,982)
Stock-based compensation	—		—		27,431		—		—		27,431
Convertible debt activity	528		—		(748)		—		—		(748)
Balance as of July 3, 2021	44,764	$	4	$	200,716	$	1,027,105	$	(71)	$	1,227,754

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Six Months Ended
	July 2,		July 3,
	2022		2021
Operating Activities
Net income	$	45,042	$	33,441
Adjustments to reconcile net income to cash provided by operating activities of continuing operations:
Income from discontinued operations, net of income taxes		—		(77,088)
Depreciation of property and equipment		10,561		8,184
Amortization of other intangible assets		19,194		22,902
Amortization of debt discount and debt issuance costs		994		11,822
Loss on extinguishment of convertible debt		3		3,370
Stock-based compensation expense		27,264		22,620
Equity-method earnings		(1,166)		(1,898)
Deferred income taxes		(9,344)		(5,644)
Changes in operating assets and liabilities:
Accounts receivable		26,207		(4,377)
Inventories		(24,714)		(4,447)
Prepaid expenses and other assets		(25,286)		(3,591)
Accounts payable		25,606		14,711
Other current liabilities and income taxes		(3,418)		(10,626)
Deferred revenue and returns liability		(3,153)		(175)
Other non-current liabilities		(4,416)		(3,464)
Net cash provided by operating activities of continuing operations		83,374		5,740

Investing Activities
Purchases of marketable securities		(554,267)		(80,426)
Sales of marketable securities		27,404		186,626
Maturities of marketable securities		511,296		100,023
Purchases of property and equipment		(12,322)		(10,779)
Purchases of other assets		—		(578)
Net cash provided by (used in) investing activities of continuing operations		(27,889)		194,866

Financing Activities
Payments on debt		(21)		(140,572)
Repurchases of common stock		(579,040)		(18,982)
Payment of taxes withheld for vested stock awards		(13,958)		(19,732)
Proceeds from the issuance of common stock		6,365		8,388
Net cash used in financing activities of continuing operations		(586,654)		(170,898)

Discontinued Operations
Operating activities		(38,604)		72,674
Investing activities		—		(2,018)
Net cash provided by (used in) discontinued operations		(38,604)		70,656

Increase (decrease) in cash and cash equivalents		(569,773)		100,364
Cash and cash equivalents at beginning of period		1,074,623		202,720
Cash and cash equivalents at end of period	$	504,850	$	303,084

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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1. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The information included herein contains all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly Silicon Laboratories Inc.’s (the “Company”) financial position, results of its operations, comprehensive income, stockholders’ equity and cash flows. The Condensed Consolidated Balance Sheet as of January 1, 2022 was derived from the Company’s audited Consolidated Financial Statements. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three and six months ended July 2, 2022 are not necessarily indicative of the results to be expected for the full year.

These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended January 1, 2022, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 2, 2022.

The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2022 will have 52 weeks and fiscal 2021 had 52 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. The Company periodically reviews the assumptions used in its financial statement estimates.

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year.

The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component.

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1. Significant Accounting Policies (Continued)

Adoption of New Accounting Standard

Convertible Instruments

The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40, on January 2, 2022, the first day of its fiscal year ending December 31, 2022. The Company elected the modified retrospective transition method of adoption at the beginning of the period of adoption through a cumulative-effect adjustment. Prior periods have not been adjusted. The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands):


	Increase
Financial Statement Line Item	(Decrease)
Current portion of convertible debt, net	$	76,991
Other non-current liabilities	$	(17,028)
Retained earnings	$	(59,963)

The primary impact of the Company’s adoption of ASU 2020-06 was to increase the carrying value of its convertible debt, representing the unamortized debt discount, and reduce deferred tax liabilities related to convertible debt. The adoption reduced reported interest expense recorded in connection with convertible debt, which increased basic earnings per share and diluted earnings per share by $0.11 and $0.11, respectively, for the three months ended July 2, 2022, and by $0.22 and $0.21, respectively, for the six months ended July 2, 2022.

2. Discontinued Operations

On July 26, 2021, the Company sold its infrastructure and automotive business to Skyworks Solutions, Inc. for $2.75 billion in cash. The financial results of the infrastructure and automotive business, which are readily distinguishable from other components of the Company, have been presented as discontinued operations in the Condensed Consolidated Financial Statements because the sale represented a strategic shift for the Company.

The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Condensed Consolidated Statements of Income (in thousands, except per share data):


	Three Months Ended		Six Months Ended
	July 3,		July 3,
	2021		2021
Revenues	$	108,064	$	205,712
Costs of revenues		45,091		83,910
Operating expenses		25,052		47,007
Income from discontinued operations before income taxes		37,921		74,795
Provision (benefit) for income taxes		(502)		(2,293)
Income from discontinued operations	$	38,423	$	77,088

Income from discontinued operations per share:
Basic	$	0.86	$	1.73
Diluted	$	0.84	$	1.68

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2. Discontinued Operations (Continued)

Continuing Involvement

In connection with the closing of the sale, the Company entered into certain ancillary agreements with Skyworks, including a Transition Services Agreement (“TSA”). Through the TSA, the Company has subleased certain premises to Skyworks and will provide or provides various temporary support services for three to eighteen months after the close of the transaction, depending on the service provided. Although the services provided under the TSA will generate continuing cash flows between the Company and Skyworks for the duration of the TSA, the amounts have not been nor are expected to be material to the ongoing operations of either entity. In addition, the Company has no contractual ability through the TSA or any other agreement to significantly influence the operating or financial policies of Skyworks. Fees received by the Company under the TSA were approximately $3.5 million for the six months ended July 2, 2022.

3. Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share from continuing operations (in thousands, except per share data):


	Three Months Ended				Six Months Ended
	July 2,		July 3,		July 2,		July 3,
	2022		2021		2022		2021
Income (loss) from continuing operations	$	22,135	$	(18,491)	$	45,042	$	(43,647)

Shares used in computing basic income (loss) per share		35,722		44,803		36,862		44,481

Effect of dilutive securities:
Convertible debt and stock-based awards		882		—		1,201		—
Shares used in computing diluted income (loss) per share		36,604		44,803		38,063		44,481

Income (loss) per share:
Basic	$	0.62	$	(0.41)	$	1.22	$	(0.98)
Diluted	$	0.60	$	(0.41)	$	1.18	$	(0.98)

The Company has irrevocably elected to settle the principal amount of its convertible senior notes in cash and intends to settle any excess value in shares in the event of a conversion. For the three months ended July 2, 2022 and July 3, 2021 and the six months ended July 2, 2022 and July 3, 2021, approximately 0.6 million, 0.5 million, 0.8 million and 0.8 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share. See Note 7, Debt, to the Condensed Consolidated Financial Statements for additional information.

4. Fair Value of Financial Instruments

The fair values of the Company’s financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below:

Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 – Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets.

Level 3 – Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.

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4. Fair Value of Financial Instruments (Continued)

The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value.


	Fair Value Measurements
	at July 2, 2022 Using
	Quoted Prices in		Significant Other
	Active Markets for		Observable
	Identical Assets		Inputs
Description	(Level 1)		(Level 2)		Total
Assets:
Cash equivalents:
Money market funds	$	275,655	$	—	$	275,655
Government debt securities		23,617		5,003		28,620
Corporate debt securities		—		16,934		16,934
Total cash equivalents	$	299,272	$	21,937	$	321,209

Short-term investments:
Government debt securities	$	211,319	$	92,343	$	303,662
Corporate debt securities		—		669,183		669,183
Total short-term investments	$	211,319	$	761,526	$	972,845

Total	$	510,591	$	783,463	$	1,294,054


	Fair Value Measurements
	at January 1, 2022 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	845,740	$	—	$	—	$	845,740
Corporate debt securities		—		3,552		—		3,552
Government debt securities		—		2,950		—		2,950
Total cash equivalents	$	845,740	$	6,502	$	—	$	852,242

Short-term investments:
Government debt securities	$	71,509	$