v3.26.1
Financial Instruments
 6 Months Ended
Jul. 05, 2026
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 July 5, 2026 (in thousands):
Fair Value LevelAmortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair ValueCash and Cash EquivalentsCurrent InvestmentsNon-current Investments
Cash$232,252 $— $— $232,252 $232,252 $— $— 
Money market instrumentsLevel 170,269 — — 70,269 70,269 — — 
Corporate bondsLevel 2429,801 829 (1,958)428,672 — 95,908 332,764 
Treasury notesLevel 220,394 3 (69)20,328 — 5,941 14,387 
Asset-backed securitiesLevel 23,758 — (266)3,492 — — 3,492 
Total$756,474 $832 $(2,293)$755,013 $302,521 $101,849 $350,643 
The following table summarizes the Company’s cash, cash equivalents, and investments as of December 31, 2025 (in thousands):
Fair Value LevelAmortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair ValueCash and Cash EquivalentsCurrent InvestmentsNon-current Investments
Cash$199,755 $— $— $199,755 $199,755 $— $— 
Money market instrumentsLevel 163,170 — — 63,170 63,170 — — 
Corporate bondsLevel 2342,442 3,149 (240)345,351 — 66,625 278,726 
Treasury notesLevel 229,676 167 — 29,843 — 7,412 22,431 
Asset-backed securitiesLevel 24,471 — (289)4,182 — — 4,182 
Total$639,514 $3,316 $(529)$642,301 $262,925 $74,037 $305,339 
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. Money market instruments consist of treasury bills, corporate commercial paper, and certificates of deposit that are highly liquid and mature in three months or less. Corporate bonds consist of debt securities issued by both domestic and foreign companies; treasury notes consist of debt securities issued by the U.S. government; and asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement. All of the Company's securities as of July 5, 2026 and December 31, 2025 were denominated in U.S. Dollars, with the exception of certain certificates of deposit.
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 $5,051,000 and $3,852,000 as of July 5, 2026 and December 31, 2025,
respectively.
Realized Gains (Losses) on Debt Securities
The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively (in thousands):
Three-months EndedSix-months Ended
July 5, 2026June 29, 2025July 5, 2026June 29, 2025
Gross realized gains$— $30 $28 $57 
Gross realized losses— (3)— (3)
Net realized gains (losses)$— $27 $28 $54 
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 July 5, 2026 (in thousands):
Unrealized Loss Position For:
Less than 12 Months12 Months or GreaterTotal
Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
Corporate bonds$235,846 $(1,950)$4,992 $(8)$240,838 $(1,958)
Treasury notes17,346 (69)— — 17,346 (69)
Asset-backed securities— — 3,492 (266)3,492 (266)
$253,192 $(2,019)$8,484 $(274)$261,676 $(2,293)
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, 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$30,602 $(73)$22,412 $(167)$53,014 $(240)
Asset-backed securities— — 4,182 (289)4,182 (289)
$30,602 $(73)$26,594 $(456)$57,196 $(529)
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 July 5, 2026 or December 31, 2025. 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 July 5, 2026 (in thousands):
<1 year1-2 Years2-3 Years3-4 Years4-5 Years5-8 YearsTotal
Corporate bonds$95,908 $87,861 $120,459 $54,883 $69,561 $— $428,672 
Treasury notes5,941 14,387 — — — — 20,328 
Asset-backed securities— — 1,404 — — 2,088 3,492 
$101,849 $102,248 $121,863 $54,883 $69,561 $2,088 $452,492 
Derivative Instruments
The Company’s foreign currency risk management strategy is 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 of generally up to three months but not greater than one year 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):
July 5, 2026December 31, 2025
CurrencyNotional
Value		USD
Equivalent		Notional
Value		USD
Equivalent
Derivatives Not Designated as Hedging Instruments:
Singapore Dollar46,000 $36,636 — $— 
Chinese Renminbi200,000 29,533 20,000 2,865 
Euro17,100 14,735 — — 
Mexican Peso250,000 14,269 160,000 8,881 
Hungarian Forint2,500,000 8,023 2,500,000 7,600 
British Pound4,000 5,308 4,000 5,383 
Indian Rupee300,000 3,163 400,000 4,436 
Swiss Franc2,000 2,487 — — 
Korean Won— — 9,000,000 6,239 
Japanese Yen— — 400,000 2,563 
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 LevelJuly 5, 2026December 31, 2025Balance Sheet LocationFair Value LevelJuly 5, 2026December 31, 2025
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid expenses and other current assetsLevel 2$501 $791 Accrued expensesLevel 2$1,979 $367 
Activity:
Gross amounts recognized$501 $791 $1,979 $367 
Gross amounts offset— — — — 
Net amounts presented on the Consolidated Balance Sheets$501 $791 $1,979 $367 
The Company’s foreign currency forward contracts are measured at fair value using observable market inputs, including quoted forward foreign exchange rates obtained from a large, third-party pricing service. As the valuation uses observable market data and does not rely on significant unobservable inputs, these contracts are classified within Level 2 of the fair value hierarchy. 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 EndedSix-months Ended
July 5, 2026June 29, 2025July 5, 2026June 29, 2025
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$243 $(420)$(518)$(967)
Activities related to derivative instruments are reflected within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.