v3.25.2
Fair Value Measurements
 6 Months Ended
Jul. 04, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value reflects the amounts that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy has the following three levels:
•Level 1 - quoted prices (unadjusted) in active markets for identical assets and liabilities;
•Level 2 - inputs other than Level 1 that are observable either directly or indirectly, such as quoted prices in active markets for similar instruments or on industry models using data inputs, such as interest rates and prices that can be directly observed or corroborated in active markets; and
•Level 3 - unobservable inputs that are supported by little or no market activity that are significant to the fair value measurement.
The classifications within the fair value hierarchy of our financial assets that were measured and recorded at fair value on a recurring basis were as follows (in thousands):
June 30, 2025
Level 1Level 2Total
Commercial paper$— $166,146 $166,146 
Corporate bonds— 921,130 921,130 
U.S. Treasury and government-sponsored enterprises— 177,480 177,480 
Municipal bonds— 3,872 3,872 
Total debt securities available-for-sale— 1,268,628 1,268,628 
Money market funds43,352 — 43,352 
Certificates of deposit— 73,770 73,770 
Total financial assets carried at fair value$43,352 $1,342,398 $1,385,750 
December 31, 2024
Level 1Level 2Total
Commercial paper$— $172,891 $172,891 
Corporate bonds— 1,011,366 1,011,366 
U.S. Treasury and government-sponsored enterprises— 338,393 338,393 
Municipal bonds— 3,001 3,001 
Total debt securities available-for-sale— 1,525,651 1,525,651 
Money market funds145,690 — 145,690 
Certificates of deposit— 77,226 77,226 
Total financial assets carried at fair value$145,690 $1,602,877 $1,748,567 
When available, we value marketable securities based on quoted prices for those financial instruments, which is a Level 1 input. Our remaining marketable securities are valued using third-party pricing sources, which use observable market prices, interest rates and yield curves observable at commonly quoted intervals for similar assets as observable inputs for pricing, which is a Level 2 input.
The carrying amount of our remaining financial assets and liabilities, which include receivables and payables, approximate their fair values due to their short-term nature.
Forward Foreign Currency Contracts
We may enter into forward foreign currency exchange contracts that are not designated as hedges for accounting purposes to hedge certain operational exposures for the changes in foreign currency exchange rates associated with assets or liabilities denominated in foreign currencies, primarily the Euro. Our outstanding forward contracts are generally short-term in nature with maturities of less than three months and are included in other current liabilities in the accompanying Condensed Consolidated Balance Sheets and are considered as Level 2 in the fair value hierarchy of our fair value measurements. Any net realized gains (losses) recognized on the maturity of forward contracts are included in other income (expenses), net on our accompanying Condensed Consolidated Statements of Income.
As of June 30, 2025, there were no forward contracts outstanding. As of December 31, 2024, we had one forward contract outstanding to sell €3.6 million. The net realized gains (losses) we recognized on the maturity of forward contracts were immaterial for each of the three and six months ended June 30, 2025 and 2024.