v3.26.1
Fair Value Measurements
 6 Months Ended
Jul. 03, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 11: Fair Value Measurements

Fair Value of Financial Instruments

The following tier level hierarchy is used to determine fair values of the financial instruments:

•Level 1: based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
•Level 2: based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly.
•Level 3: based on the use of unobservable inputs for the assets and liabilities and other types of analyses.

The carrying values of cash and cash equivalents, which include money market funds and demand and time deposits, approximate fair value because of the short-term maturity of these instruments. Money market funds and demand deposits are classified as Level 1 while time deposits are classified as Level 2 within the fair value hierarchy. The carrying amounts of other current assets, excluding assets held-for-sale, and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short-term maturity of the amounts, and such amounts are considered Level 2 in the fair value hierarchy.

The Company held $350.0 million and $400.0 million of short-term investments in time deposits as of July 3, 2026 and December 31, 2025, respectively.

In connection with the Vcore acquisition in 2025, the Company is required to pay additional cash consideration upon the receipt and acceptance of specified products and the achievement of certain revenue milestones. The maximum contingent cash
consideration to be distributed is $144.0 million. Contingent consideration is classified as Level 3 within the fair value hierarchy. Key unobservable inputs included the probability of completing future product milestones, the probability of achieving revenue targets, the expected timing of payments, volatility and risk‑adjusted discount rates. The contingent liability for revenue milestones was valued using Monte Carlo simulations.

The contingent consideration, which will be settled in cash, has been allocated between accrued expenses and other long-term liabilities based on the expected timing of payments. Accordingly, it will be remeasured at fair value each reporting period, with changes recognized in the Consolidated Statements of Operations. The fair value of the contingent consideration was as follows (in millions):
As of
July 3, 2026December 31, 2025
Contingent consideration included in:
Accrued expenses and other current liabilities$58.6 $48.3 
Other long-term liabilities54.5 61.6 
Total$113.1 $109.9 

Fair Value of Long-Term Debt, including Current Portion

The carrying amounts and fair values of the Company's long-term borrowings were as follows (in millions):
As of
July 3, 2026December 31, 2025
Carrying
Amount		Fair ValueCarrying
Amount		Fair Value
Long-term debt, including current portion (1)
0.50% Notes
$1,485.9 $1,813.2 $1,483.5 $1,424.2 
2031 0% Notes
1,474.0 1,494.7 — — 
0% Notes
802.1 1,416.7 800.4 965.0 
3.875% Notes
697.4 682.2 696.6 684.2 

(1) Carrying amounts shown are net of unamortized debt discount, if applicable, and unamortized debt issuance costs.

Fair values of the 0.50% Notes, 2031 0% Notes, 0% Notes and 3.875% Notes were estimated based on market prices in active markets (Level 1).