v3.25.2
Financial Instruments
 6 Months Ended
Jun. 29, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Cash, Cash Equivalents, and Investments
The following table summarizes the Company’s cash, cash equivalents, and investments as of June 29, 2025 (in thousands):
Fair Value LevelAmortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair ValueCash and Cash EquivalentsCurrent InvestmentsNon-current Investments
Cash$151,362 $— $— $151,362 $151,362 $— $— 
Money market instrumentsLevel 1656 — — 656 656 — — 
Certificates of depositLevel 225,293 — — 25,293 25,293 — — 
Treasury billsLevel 22,000 — — 2,000 2,000 — — 
Corporate bondsLevel 2334,656 2,292 (1,023)335,925 — 47,809 288,115 
Treasury notesLevel 231,408 98 (23)31,483 — — 31,484 
Asset-backed securitiesLevel 25,245 — (409)4,836 — 87 4,749 
Sovereign bondsLevel 21,001 — (5)996 — 996 — 
Total$551,621 $2,390 $(1,460)$552,551 $179,311 $48,892 $324,348 
The following table summarizes the Company’s cash, cash equivalents, and investments as of December 31, 2024 (in thousands):
Fair Value LevelAmortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair ValueCash and Cash EquivalentsCurrent InvestmentsNon-current Investments
Cash$170,852 $— $— $170,852 $170,852 $— $— 
Money market instrumentsLevel 115,242 — — 15,242 15,242 — — 
Corporate bondsLevel 2344,804 411 (4,299)340,916 — 55,742 285,174 
Treasury notesLevel 246,071 2 (439)45,634 — 2,487 43,147 
Asset-backed securitiesLevel 213,870 — (556)13,314 — 737 12,577 
Sovereign bondsLevel 21,013 — (23)990 — 990 — 
Total$591,852 $413 $(5,317)$586,948 $186,094 $59,956 $340,898 
The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1.
The Company’s debt securities are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial instruments, and in doing so, considers valuations provided by a large, third-party pricing service. This service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations.
Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $3,926,000 and $4,144,000 as of June 29, 2025 and December 31, 2024, respectively.
Realized Gains (Losses) on Debt Securities
The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month and six-month periods ended June 29, 2025 and June 30, 2024 (in thousands):
Three-months EndedSix-months Ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Gross realized gains$30 $6 $57 $8 
Gross realized losses(3)(16)(3)(16)
Net realized gains (losses)$27 $(10)$54 $(8)
Realized gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as accumulated other comprehensive income (loss).
Unrealized Losses on Debt Securities
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of June 29, 2025 (in thousands):
 Unrealized Loss Position For: 
 Less than 12 Months12 Months or GreaterTotal
 Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
Corporate bonds$54,076 $(282)$52,136 $(741)$106,212 $(1,023)
Treasury notes9,708 (23)— — 9,708 (23)
Asset-backed securities— — 4,836 (409)4,836 (409)
Sovereign bonds— — 996 (5)996 (5)
$63,784 $(305)$57,968 $(1,155)$121,752 $(1,460)
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2024 (in thousands):
 Unrealized Loss Position For: 
 Less than 12 Months12 Months or GreaterTotal
 Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
Corporate bonds$172,049 $(2,227)$87,815 $(2,071)$259,864 $(4,298)
Treasury notes42,149 (425)2,487 (14)44,636 (439)
Asset-backed securities11,024 (547)2,290 (10)13,314 (557)
Sovereign bonds— — 990 (23)990 (23)
$225,222 $(3,199)$93,582 $(2,118)$318,804 $(5,317)
Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of June 29, 2025 or December 31, 2024. Management currently intends to hold these securities to full value recovery at maturity.
Debt Securities Maturities
The following table presents the effective maturity dates of the Company’s available-for-sale investments as of June 29, 2025 (in thousands):
<1 year1-2 Years2-3 Years3-4 Years4-5 Years5-8 YearsTotal
Corporate bonds$47,809 $74,948 $106,924 $71,479 $34,765 $— $335,925 
Treasury notes— 15,163 16,320 — — — 31,483 
Asset-backed securities87 — — 1,774 — 2,975 4,836 
Sovereign bonds996 — — — — — 996 
$48,892 $90,111 $123,244 $73,253 $34,765 $2,975 $373,240 
Derivative Instruments
The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities that do not exceed twelve months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.
The Company had the following outstanding forward contracts (in thousands):
June 29, 2025December 31, 2024
CurrencyNotional
Value		USD
Equivalent		Notional
Value		USD
Equivalent
Derivatives Not Designated as Hedging Instruments:
Singapore Dollar38,000 $29,317 40,000 $29,457 
Chinese Renminbi70,000 9,780 95,000 12,990 
Mexican Peso150,000 7,939 220,000 10,701 
Hungarian Forint2,500,000 7,344 2,360,000 5,951 
Indian Rupee500,000 5,844 — — 
British Pound4,000 5,486 3,200 4,008 
Korean Won7,000,000 5,155 — — 
Japanese Yen300,000 2,080 2,000,000 12,789 
Euro— — 25,000 26,029 
Swiss Franc— — 2,200 2,432 
Canadian Dollar— — 2,000 1,390 
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
 Asset DerivativesLiability Derivatives
 Fair ValueFair Value
 Balance Sheet LocationFair Value LevelJune 29, 2025December 31, 2024Balance Sheet LocationFair Value LevelJune 29, 2025December 31, 2024
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid expenses and other current assetsLevel 2$1,065 $689 Accrued expensesLevel 2$766 $757 
Activity:
Gross amounts recognized$1,065 $689 $766 $757 
Gross amounts offset— — — — 
Net amounts presented on the Consolidated Balance Sheets$1,065 $689 $766 $757 
The Company’s forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks.
Information regarding the effect of derivative instruments on the Consolidated Statements of Operations was as follows (in thousands):
 Statement of Operations LocationThree-months Ended
Six-months Ended
 June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$(420)$876 $(967)$631 
Activities related to derivative instruments are reflected within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.