v3.26.3
Fair Value Measurements and Investments
 3 Months Ended
Oct. 02, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Investments Fair Value Measurements and Investments
Financial Instruments Carried at Fair Value
Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one of the following three levels:
Level 1.    Quoted prices in active markets for identical assets or liabilities.
Level 2.    Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3.    Inputs that are unobservable for the asset or liability and that are significant to the fair value of the assets or liabilities.
The following tables present information about the Company’s financial instruments that were measured at fair value on a recurring basis for the periods presented and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:
October 2, 2026
Level 1Level 2Level 3Total
(in millions)
Assets:
Cash equivalents - Money market funds$2,188 $— $— $2,188 
Marketable equity securities2,289 — — 2,289 
Short-term investments (included in Other current assets)— 70 — 70 
Foreign exchange contracts (included in Other current assets)— 2 — 2 
Total assets at fair value$4,477 $72 $— $4,549 
Liabilities:
Foreign exchange contracts (included in Accrued expenses)$— $9 $— $9 
Total liabilities at fair value$— $9 $— $9 
July 3, 2026
Level 1Level 2Level 3Total
(in millions)
Assets:
Cash equivalents - Money market funds$2,863 $— $— $2,863 
Marketable equity securities1,777 — — 1,777 
Short-term investments (included in Other current assets)— — — — 
Foreign exchange contracts (included in Other current assets)— 6 — 6 
Total assets at fair value$4,640 $6 $— $4,646 
Liabilities:
Foreign exchange contracts (included in Accrued expenses)$— $2 $— $2 
Total liabilities at fair value$— $2 $— $2 
Money Market Funds. The Company’s money market funds are funds invested in U.S. Treasury and U.S. Government agency securities. Money market funds are valued based on quoted market prices.
Marketable Equity Securities. The Company’s marketable equity securities represent an investment in Nanya Technology Corporation, a publicly-traded entity that has a quoted price in an active market and, therefore, has a readily determinable fair value. The marketable equity securities are measured at fair value with the unrealized gains amounting to $512 million for the three months ended October 2, 2026, recognized through the Condensed Consolidated Statements of Operations. The marketable equity securities owned by the Company are subject to a statutory lock-up period of three years, during which the Company will be restricted from transferring or selling the shares, subject to limited exceptions under applicable Taiwanese law.
Short-term investments. The Company has invested in time deposits with original maturities of greater than 90 days. These instruments are presented within Other current assets and are considered short-term investments.
Foreign Exchange Contracts. The Company’s foreign exchange contracts are short-term contracts to hedge the Company’s foreign currency risk. Foreign exchange contracts are valued using an income approach that is based on the present value of a future cash flow model. The market-based observable inputs for the model include forward rates and credit default swap rates. See Note 7, Derivative Instruments and Hedging Activities, for additional disclosures.
During the periods presented, the Company had no transfers of financial instruments between levels, and there were no changes in valuation techniques or the inputs used in the fair value measurement.