v3.26.1
Fair Value Measures
 9 Months Ended
Jun. 27, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measures Fair Value Measures
The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market
Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability
The following table presents the Company’s financial assets measured and recorded at fair value on a recurring basis using the above input categories as of June 27, 2026 and September 27, 2025 (in thousands):
June 27, 2026
September 27, 2025
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets:
Money market funds
$
1,086,774 
$
— 
$
— 
$
1,086,774 
$
1,193,375 
$
— 
$
— 
$
1,193,375 
Strategic investments
— 
43,455 
87,707 
131,162 
— 
16,789 
43,334 
60,123 
Total assets
$
1,086,774 
$
43,455 
$
87,707 
$
1,217,936 
$
1,193,375 
$
16,789 
$
43,334 
$
1,253,498 
The Company had no liabilities measured and recorded at fair value on a recurring basis as of June 27, 2026 and September 27, 2025.
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the condensed consolidated balance sheets. The fair value of outstanding warrants issued to the Company are classified as Level 2. Level 2 securities are priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. Certain strategic investments measured at fair value are classified as Level 3 as their fair value measurements may include a combination of observable and unobservable inputs. Other certain strategic investments are carried at cost and are subject to remeasurement only upon the occurrence of a triggering event.
Strategic Investments
Strategic investments that consist of noncontrolling equity investments without readily determinable fair values in privately held companies for which the Company does not have the ability to exercise significant influence are accounted for at cost, with adjustments for observable changes in prices or impairments representing Level 3 fair value measurements recognized in “other income, net” on the Company’s condensed consolidated statements of operations. Each reporting period, the Company performs a qualitative assessment to evaluate whether the investment is impaired. The Company’s assessment includes a review of recent operating results and trends, recent sales or acquisitions of the investee securities, and other publicly available data. If the investment is impaired, the Company writes it down to its estimated fair value. As of June 27, 2026 and September 27, 2025, these investments had a carrying value of $65.1 million and $23.3 million, respectively.
The Company has warrants issued which are included within strategic investments and for which the fair value is classified as Level 2. The fair value of the warrants accounted for as derivative instruments is $35.2 million at June 27, 2026 and is further described in Note 13, Derivative Instruments.
The Company has certain other non-marketable strategic investments measured at fair value. The Company has not elected the fair value option for these investments. The Company held $22.6 million of these investments at June 27, 2026 and $20.0 million of these investments at September 27, 2025. These investments are included in other assets on the consolidated balance sheets. A fair value adjustment resulting from an increase in fair value on these strategic investments of $0.9 million and $2.6 million was recorded to “other income, net” for the three and nine months ended June 27, 2026, respectively. There were no losses, or impairments recorded for the three or nine months ended June 27, 2026.