v3.25.3
Financial Instruments
 9 Months Ended
Sep. 28, 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 September 28, 2025 (in thousands):
Fair Value LevelAmortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair ValueCash and Cash EquivalentsCurrent InvestmentsNon-current Investments
Cash$152,453 $— $— $152,453 $152,453 $— $— 
Money market instrumentsLevel 157,023 — — 57,023 57,023 — — 
Certificates of depositLevel 236,422 — — 36,422 36,422 — — 
Corporate bondsLevel 2315,660 2,697 (592)317,765 — 51,879 265,886 
Treasury notesLevel 229,604 113 (7)29,710 — — 29,710 
Asset-backed securitiesLevel 24,822 — (340)4,482 — — 4,482 
Treasury billsLevel 21,489 — — 1,489 — 1,489 — 
Sovereign bondsLevel 21,000 — — 1,000 — 1,000 — 
Total$598,473 $2,810 $(939)$600,344 $245,898 $54,368 $300,078 
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 $3,268,000 and $4,144,000 as of September 28, 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 nine-month periods ended September 28, 2025 and September 29, 2024 (in thousands):
Three-months EndedNine-months Ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Gross realized gains$116 $— $173 $8 
Gross realized losses(20)— (23)(16)
Net realized gains (losses)$96 $— $150 $(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 September 28, 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$72,812 $(190)$33,955 $(403)$106,767 $(593)
Treasury notes11,075 (6)— — 11,075 (6)
Asset-backed securities— — 4,483 (340)4,483 (340)
Sovereign bonds— — 1,000 — 1,000 — 
$83,887 $(196)$39,438 $(743)$123,325 $(939)
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 September 28, 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 September 28, 2025 (in thousands):
<1 year1-2 Years2-3 Years3-4 Years4-5 Years5-8 YearsTotal
Corporate bonds$51,879 $73,474 $93,202 $70,619 $28,591 $— $317,765 
Treasury notes— 18,690 11,020 — — — 29,710 
Asset-backed securities— — — 1,713 — 2,769 4,482 
Treasury bills1,489 — — — — — 1,489 
Sovereign bonds1,000 — — — — — 1,000 
$54,368 $92,164 $104,222 $72,332 $28,591 $2,769 $354,446 
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):
September 28, 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 Renminbi90,000 12,628 95,000 12,990 
Mexican Peso100,000 5,417 220,000 10,701 
Hungarian Forint2,500,000 7,466 2,360,000 5,951 
British Pound4,000 5,362 3,200 4,008 
Japanese Yen200,000 1,341 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 LevelSeptember 28, 2025December 31, 2024Balance Sheet LocationFair Value LevelSeptember 28, 2025December 31, 2024
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid expenses and other current assetsLevel 2$262 $689 Accrued expensesLevel 2$316 $757 
Activity:
Gross amounts recognized$262 $689 $316 $757 
Gross amounts offset— — — — 
Net amounts presented on the Consolidated Balance Sheets$262 $689 $316 $757 
The Company’s forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks.
Information regarding the effect of derivative instruments on the Consolidated Statements of Operations was as follows (in thousands):
Statement of Operations LocationThree-months EndedNine-months Ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$(447)$944 $(1,414)$1,575 
Activities related to derivative instruments are reflected within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.