v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 3. Fair Value Measurements

Recurring Fair Value Measurements

The following tables present information about the Company’s assets and liabilities that are regularly measured and carried at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value, which is described further within Note 4 Fair Value Measurements to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2026:

 

 

June 30, 2026

 

 

 

Cash and Cash Equivalents

 

 

Marketable Securities

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal and municipal notes and bonds

 

$

—

 

 

$

124,772

 

 

$

124,772

 

 

$

—

 

 

$

308,291

 

 

$

308,291

 

Cash

 

 

226,804

 

 

 

—

 

 

 

226,804

 

 

 

—

 

 

 

—

 

 

 

—

 

Money market funds

 

 

787,462

 

 

 

—

 

 

 

787,462

 

 

 

—

 

 

 

—

 

 

 

—

 

Certificates of deposit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

73,970

 

 

 

73,970

 

Commercial paper

 

 

—

 

 

 

114,167

 

 

 

114,167

 

 

 

—

 

 

 

179,097

 

 

 

179,097

 

Corporate bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

67,587

 

 

 

67,587

 

Total Cash, Cash Equivalents, and Marketable Securities

 

$

1,014,266

 

 

$

238,939

 

 

$

1,253,205

 

 

$

—

 

 

$

628,945

 

 

$

628,945

 

      Foreign currency forward contracts

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,284

 

 

 

1,284

 

Total assets

 

$

1,014,266

 

 

$

238,939

 

 

$

1,253,205

 

 

$

—

 

 

$

630,229

 

 

$

630,229

 

 

 

 

January 3, 2026

 

 

 

Cash and Cash Equivalents

 

 

Marketable Securities

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal and municipal notes and bonds

 

$

—

 

 

$

40,415

 

 

$

40,415

 

 

$

—

 

 

$

149,554

 

 

$

149,554

 

Cash

 

 

245,130

 

 

 

—

 

 

 

245,130

 

 

 

—

 

 

 

—

 

 

 

—

 

Money market funds

 

 

5,118

 

 

 

—

 

 

 

5,118

 

 

 

—

 

 

 

—

 

 

 

—

 

Certificates of deposit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

47,338

 

 

 

47,338

 

Commercial paper

 

 

—

 

 

 

53,373

 

 

 

53,373

 

 

 

—

 

 

 

32,204

 

 

 

32,204

 

Corporate bonds

 

 

—

 

 

 

2,083

 

 

 

2,083

 

 

 

—

 

 

 

64,407

 

 

 

64,407

 

Total Cash, Cash Equivalents, and Marketable Securities

 

$

250,248

 

 

$

95,871

 

 

$

346,119

 

 

$

—

 

 

$

293,503

 

 

$

293,503

 

      Foreign currency forward contracts

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

89

 

 

 

89

 

Total assets

 

$

250,248

 

 

$

95,871

 

 

$

346,119

 

 

$

—

 

 

$

293,592

 

 

$

293,592

 

Items classified within Level 1 of the fair value hierarchy are valued using quoted prices in active markets for identical assets or liabilities. The Company’s marketable securities, comprised of Level 2 available-for-sale debt securities, are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. The foreign currency forward contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers.

There were no impairments of the Company’s assets measured and carried at fair value during the three and six months ended June 30, 2026 and June 28, 2025. There were no changes in valuation techniques during the three and six months ended June 30, 2026 and June 28, 2025.

Financial Instruments Not Measured at Fair Value on a Recurring Basis

The Company reports its financial instruments at fair value with the exception of its 0.00% Convertible Senior Notes due 2031 (“2031 Notes”). The estimated fair value of the 2031 Notes was determined based on the trading price of the 2031 Notes as of the last day of trading for the period. The Company classifies the fair value of the 2031 Notes as a Level 2 measurement, as the 2031 Notes are not actively traded in the market. On or after March 1, 2031, until the close of business on the second Scheduled Trading Day (as defined in the Indenture governing the 2031 Notes, which is further described in Note 7 below) immediately before the maturity date, the 2031 Notes will be convertible at the option of the noteholders at any time.

At June 30, 2026 the carrying value, net of unamortized debt discount and issuance costs, and estimated fair values of the 2031 Notes are as follows:

 

 

June 30, 2026

 

 

 

Level 2

 

 

 

Carrying Value, net

 

 

Estimated Fair Value

 

 

 

(in thousands)

 

Senior Convertible Notes:

 

 

 

 

 

 

2031 Notes

 

$

1,471,731

 

 

$

1,982,250

 

Total senior convertible notes

 

$

1,471,731

 

 

$

1,982,250

 

 

Assets Measured at Fair Value on a Non-Recurring Basis

At June 30, 2026 and January 3, 2026, the Company held investments of $8.0 million in the equity of a privately-held company. This non-marketable equity investment is recorded at fair value on a non-recurring basis and is classified as a Level 3 asset in “Other assets” on the Condensed Consolidated Balance Sheets. This non-marketable equity investment is generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and is periodically assessed for impairment when events or circumstances indicate that decline in value may have occurred. As of June 30, 2026, there have been no impairments recorded for the non-marketable equity investment.