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FAIR VALUE AND FINANCIAL INSTRUMENTS
 9 Months Ended
Jul. 03, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE AND FINANCIAL INSTRUMENTS FAIR VALUE AND FINANCIAL INSTRUMENTS
We group our financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value. These levels are:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data.
Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by us.
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
We measure certain assets and liabilities at fair value on a recurring basis such as our financial instruments. There have been no transfers between Level 1, 2 or 3 assets or liabilities during the three and nine months ended July 3, 2026.
Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands):
July 3, 2026
Fair ValueActive Markets for Identical Assets (Level 1)Observable Inputs (Level 2)Unobservable Inputs (Level 3)
Assets
Money market funds$23,941 $23,941 $— $— 
U.S. Treasuries and agency bonds42,339 23,409 18,930 — 
Corporate bonds531,087 — 531,087 — 
Marketable equity securities90,013 90,013 — — 
Non-marketable debt securities12,119 — 12,119 — 
Total assets measured at fair value$699,499 $137,363 $562,136 $— 
October 3, 2025
Fair ValueActive Markets for Identical Assets (Level 1)Observable Inputs (Level 2)Unobservable Inputs (Level 3)
Assets
Money market funds$63,811 $63,811 $— $— 
U.S. Treasuries and agency bonds66,738 45,373 21,365 — 
Corporate bonds557,579 — 557,579 — 
Commercial paper49,516 — 49,516 — 
Total assets measured at fair value$737,644 $109,184 $628,460 $— 
Derivatives
We have foreign currency exposure arising from certain of our Euro and Yen denominated intercompany debt. We have entered into foreign currency exchange hedging contracts associated with this intercompany debt to partially mitigate the impact of currency rate changes. They are not designated as cash flow or fair value hedges under ASC 815, Derivatives and Hedging. Changes in fair value are reported in current period earnings. These gains and losses are intended to offset the gains and losses recorded on the associated intercompany debt. We do not use derivative financial instruments for trading or speculation purposes.
As of July 3, 2026 and October 3, 2025, we had $58.5 million and $36.0 million, respectively, in notional forward foreign currency contracts. As of July 3, 2026 and October 3, 2025, the fair value of derivative instruments not designated as hedges was immaterial.