v3.25.2
Fair Value of Financial Instruments
 6 Months Ended
Jul. 05, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments 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.
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 5, 2025 Using
DescriptionQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Total
Cash equivalents:
Money market funds$235,405 $— $235,405 
Total cash equivalents$235,405 $— $235,405 
Short-term investments:
Corporate debt securities$— $405 $405 
Government debt securities— 100,676 100,676 
Total short-term investments$— $101,081 $101,081 
Total$235,405 $101,081 $336,486 
Fair Value Measurements
at December 28, 2024 Using
DescriptionQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Total
Cash equivalents:
Money market funds$188,057 $— $188,057 
Total cash equivalents$188,057 $— $188,057 
Short-term investments:
Corporate debt securities$— $13,514 $13,514 
Government debt securities— 87,040 87,040 
Total short-term investments$— $100,554 $100,554 
Total$188,057 $100,554 $288,611 
Valuation methodology
The Company’s short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; quoted prices in less active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data.
The following summarizes the components of available-for-sale investments (in thousands):
Reported As
As of July 5, 2025Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash EquivalentMarketable Securities
Corporate debt securities$407 $— $(2)$405 $— $405 
Government debt securities100,561 146 (31)100,676 — 100,676 
Money market funds235,405 — — 235,405 235,405 — 
Total$336,373 $146 $(33)$336,486 $235,405 $101,081 
Reported As
As of December 28, 2024Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash EquivalentMarketable Securities
Corporate debt securities$13,517 $12 $(15)$13,514 $— $13,514 
Government debt securities86,949 141 (49)87,040 — 87,040 
Money market funds188,057 — — 188,057 188,057 — 
Total$288,523 $153 $(64)$288,611 $188,057 $100,554 
Contractual maturities of investments
The Company’s available-for-sale investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income in the Condensed Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at July 5, 2025 (in thousands):
CostFair Value
Due in one year or less $66,128 $66,163 
Due after one year through five years 34,840 34,918 
$100,968 $101,081 
Unrealized Gains and Losses
The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands):
Less Than 12 Months12 Months or GreaterTotal
As of July 5, 2025Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Corporate debt securities $— $— $291 $(2)$291 $(2)
Government debt securities35,456 (31)— — 35,456 (31)
$35,456 $(31)$291 $(2)$35,747 $(33)
Less Than 12 Months12 Months or GreaterTotal
As of December 28, 2024Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Corporate debt securities $— $— $4,187 $(15)$4,187 $(15)
Government debt securities26,318 (49)— — 26,318 (49)
$26,318 $(49)$4,187 $(15)$30,505 $(64)
The gross unrealized losses as of July 5, 2025 and December 28, 2024 were due primarily to changes in market interest rates. At July 5, 2025 and December 28, 2024, there were no material unrealized gains associated with the Company’s available-for-sale investments.
The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of July 5, 2025, there were no material declines in the market value of available-for-sale investments due to credit-related factors.
Fair values of other financial instruments
The Company’s other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities.