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Fair Value Measurements
 9 Months Ended
Oct. 01, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value reflects the amounts that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy has the following three levels:
•Level 1 - quoted prices (unadjusted) in active markets for identical assets and liabilities;
•Level 2 - inputs other than level 1 that are observable either directly or indirectly, such as quoted prices in active markets for similar instruments or on industry models using data inputs, such as interest rates and prices that can be directly observed or corroborated in active markets; and
•Level 3 - unobservable inputs that are supported by little or no market activity that are significant to the fair value measurement.
The classifications within the fair value hierarchy of our financial assets that were measured and recorded at fair value on a recurring basis were as follows (in thousands):
September 30, 2021
Level 1
Level 2
Total
Commercial paper$— $886,396 $886,396 
Corporate bonds— 505,548 505,548 
U.S. Treasury and government-sponsored enterprises— 58,985 58,985 
Municipal bonds— 10,711 10,711 
Total debt securities available-for-sale— 1,461,640 1,461,640 
Money market funds119,538 — 119,538 
Certificates of deposit— 134,106 134,106 
Total financial assets carried at fair value$119,538 $1,595,746 $1,715,284 
December 31, 2020
Level 1
Level 2
Total
Commercial paper$— $569,828 $569,828 
Corporate bonds— 548,757 548,757 
U.S. Treasury and government-sponsored enterprises— 208,554 208,554 
Municipal bonds— 28,762 28,762 
Total debt securities available-for-sale— 1,355,901 1,355,901 
Money market funds40,761 — 40,761 
Certificates of deposit— 60,004 60,004 
Total financial assets carried at fair value$40,761 $1,415,905 $1,456,666 
When available, we value investments based on quoted prices for those financial instruments, which is a Level 1 input. Our remaining investments are valued using third-party pricing sources, which use observable market prices, interest rates and yield curves observable at commonly quoted intervals for similar assets as observable inputs for pricing, which is a Level 2 input.
The carrying amount of our remaining financial assets and liabilities, which include cash, receivables and payables, approximate their fair values due to their short-term nature.
Forward Foreign Currency Contracts
In January 2021, we initiated an operational hedging program and entered into forward contracts to hedge certain operational exposures for the changes in foreign currency exchanges rates associated with assets or liabilities denominated in foreign currencies, primarily the Euro.
As of September 30, 2021, we had one forward contract outstanding to sell €9.8 million. The forward contract with a maturity of three months is recorded at fair value and is included in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. The unrealized gain/loss on the settlement of the forward contract is not material as of September 30, 2021. The forward contract is considered a Level 2 in the fair value hierarchy of our fair value measurements. For the nine months ended September 30, 2021, we recognized $0.5 million of net gains on the maturity of our forward contracts, which is included in other income (expense), net on our Condensed Consolidated Statements of Income (Loss).