v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Apr. 04, 2026
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 April 4, 2026 Using
DescriptionQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Total
Cash equivalents:
Money market funds$217,216 $— $217,216 
Time deposit— 5,490 5,490 
Total cash equivalents$217,216 $5,490 $222,706 
Short-term investments:
Government debt securities$— $55,767 $55,767 
Total short-term investments$— $55,767 $55,767 
Total$217,216 $61,257 $278,473 
Fair Value Measurements
at January 3, 2026 Using
DescriptionQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Total
Cash equivalents:
Money market funds$206,051 $— $206,051 
Time deposit— 5,595 5,595 
Total cash equivalents$206,051 $5,595 $211,646 
Short-term investments:
Government debt securities$— $79,400 $79,400 
Total short-term investments$— $79,400 $79,400 
Total$206,051 $84,995 $291,046 
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 April 4, 2026Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash EquivalentMarketable Securities
Time Deposits$5,490 $— $— $5,490 $5,490 $— 
Government debt securities55,687 81 (1)55,767 — 55,767 
Money market funds217,216 — — 217,216 217,216 — 
Total$278,393 $81 $(1)$278,473 $222,706 $55,767 
Reported As
As of January 03, 2026Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash EquivalentMarketable Securities
Time deposits$5,595 $— $— $5,595 $5,595 $— 
Government debt securities79,148 252 — 79,400 — 79,400 
Money market funds206,051 — — 206,051 206,051 — 
Total$290,794 $252 $— $291,046 $211,646 $79,400 
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 April 4, 2026 (in thousands):
CostFair Value
Due in one year or less $50,994 $51,062 
Due after one year through five years 4,693 4,705 
$55,687 $55,767 
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 April 4, 2026Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Government debt securities$5,214 $(1)$— $— $5,214 $(1)
$5,214 $(1)$— $— $5,214 $(1)
The gross unrealized losses as of April 4, 2026 were due primarily to changes in market interest rates. There were no gross unrealized losses as of January 3, 2026. At April 4, 2026 and January 3, 2026, 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 April 4, 2026, 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.