v3.26.3
Fair Value Measurements
 3 Months Ended
Oct. 03, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 8. Fair Value Measurements
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. There is an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. Observable inputs are inputs which market participants would use in valuing an asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs which reflect the assumptions market participants would use in valuing an asset or liability.
The three levels of inputs that may be used to measure fair value are:
•Level 1: includes financial instruments for which quoted market prices for identical instruments are available in active markets. Level 1 assets of the Company include money market funds, U.S. Treasury securities and marketable equity securities as they are traded with sufficient volume and frequency of transactions.
•Level 2: includes financial instruments for which the valuations are based on quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 2 instruments of the Company include asset-backed securities, foreign currency forward contracts and debt. To estimate their fair value, the Company utilizes pricing models based on market data. The significant inputs for the valuation model usually include benchmark yields, reported trades, broker and dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, and industry and economic events.
•Level 3: includes financial instruments for which fair value is derived from valuation-based inputs, that are unobservable and significant to the overall fair value measurement. The Company’s Level 3 assets consist of an investment in a non-marketable equity security in a privately held company. We measure the non-marketable equity security under the Measurement Alternative at cost minus impairment, if any, adjusted for observable price changes in orderly transactions for an identical or similar investment in the same issuer. The Company’s Level 3 liabilities consist of contingent purchase consideration liabilities related to business acquisitions. The fair value of such liabilities are generally determined using a Monte Carlo Simulation that includes significant unobservable inputs such as the projected revenues of the acquired business over the earn-out period. The fair value of certain liabilities is derived using the estimated probability of success of achieving the earn-out milestones discounted to present value. The fair value of contingent consideration liabilities is remeasured at each reporting period at the estimated fair value based on the inputs on the date of remeasurement, with the change in fair value recognized as a component of SG&A in the Consolidated Statements of Operations.
Fair Value Measurements
The Company’s assets and liabilities measured at fair value on a recurring basis for the periods presented are as follows (in millions):
October 3, 2026June 27, 2026
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets:
Debt available-for-sale securities(1)
$0.3 $— $0.3 $— $0.3 $— $0.3 $— 
Money market funds(2)
291.2 291.2 — — 452.6 452.6 — — 
Trading securities(3)
2.0 2.0 — — 1.9 1.9 — — 
Foreign currency forward contracts(4)
1.1 — 1.1 — 1.6 — 1.6 — 
Total assets$294.6 $293.2 $1.4 $— $456.4 $454.5 $1.9 $— 
Liabilities:
Foreign currency forward contracts(5)
$1.7 $— $1.7 $— $2.5 $— $2.5 $— 
Contingent consideration(6)
93.0 — — 93.0 76.9 — — 76.9 
Total liabilities$94.7 $— $1.7 $93.0 $79.4 $— $2.5 $76.9 
(1)Included in Other non-current assets on the Consolidated Balance Sheets.
(2)Includes, as of October 3, 2026, $282.3 million in Cash and cash equivalents, $6.0 million in Restricted cash and $2.9 million in Other non-current assets on the Consolidated Balance Sheets. Includes, as of June 27, 2026, $443.3 million in Cash and cash equivalents, $6.4 million in Restricted cash and $2.9 million in Other non-current assets on the Consolidated Balance Sheets.
(3)Included in Short-term investments on the Consolidated Balance Sheets.
(4)Included in Prepayments and other current assets on the Consolidated Balance Sheets.
(5)Included in Other current liabilities on the Consolidated Balance Sheets.
(6)As of October 3, 2026 and June 27, 2026, includes certain amounts in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets.
Contingent Consideration
As of October 3, 2026, the fair value of the contingent consideration liability was $93.0 million compared to $76.9 million at June 27, 2026. As of October 3, 2026, $72.9 million and $20.1 million of the liability are included in Other current liabilities and Other non-current liabilities, respectively, on the Consolidated Balance Sheets. During the three months ended October 3, 2026, the Company made a contingent consideration payment of $0.5 million for Direct Optical Research Company which was classified as an investing outflow in the Consolidated Statements of Cash Flows.
The earn-out period for Jackson Labs ended on December 31, 2025. The Company was not required to make a contingent consideration payment as the revenue targets were not met.
The Company recorded a charge of $12.4 million from the change in fair value measurement of the contingent consideration liabilities within SG&A in the Consolidated Statements of Operations for the three months ended October 3, 2026.
Instrument Measured at Fair Value on Non-recurring Basis
Our non-marketable equity security accounted for using the Measurement Alternative is measured at fair value on a non-recurring basis and is classified within Level 3 of the fair value hierarchy because we use significant unobservable inputs to estimate its fair value. Refer to “Note 7. Investments and Forward Contracts” for additional information.
Other Fair Value Measures
Fair Value of Debt: If measured at fair value on the Consolidated Balance Sheets, the Company’s 0.625% Senior Convertible Notes (2031 Notes) and 3.75% Senior Notes (2029 Notes) would be classified in Level 2 of the fair value hierarchy as they are not actively traded in the markets.
The Company’s debt measured at fair value for the periods presented is as follows (in millions):
October 3, 2026June 27, 2026
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Debt:
0.625% Senior Convertible Notes
$880.0 $— $880.0 $— $889.1 $— $889.1 $— 
3.75% Senior Notes
372.1 — 372.1 — 381.8 — 381.8 — 
   Total $1,252.1 $— $1,252.1 $— $1,270.9 $— $1,270.9 $—