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Fair Value Measurements
 3 Months Ended
Apr. 01, 2022
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):
March 31, 2022
Level 1
Level 2
Total
Commercial paper$— $954,262 $954,262 
Corporate bonds— 522,101 522,101 
U.S. Treasury and government-sponsored enterprises— 196,464 196,464 
Municipal bonds— 13,286 13,286 
Total debt securities available-for-sale— 1,686,113 1,686,113 
Money market funds87,255 — 87,255 
Certificates of deposit— 117,901 117,901 
Total financial assets carried at fair value$87,255 $1,804,014 $1,891,269 
December 31, 2021
Level 1
Level 2
Total
Commercial paper$— $945,841 $945,841 
Corporate bonds— 540,978 540,978 
U.S. Treasury and government-sponsored enterprises— 33,945 33,945 
Municipal bonds— 12,904 12,904 
Total debt securities available-for-sale— 1,533,668 1,533,668 
Money market funds66,531 — 66,531 
Certificates of deposit— 119,056 119,056 
Total financial assets carried at fair value$66,531 $1,652,724 $1,719,255 
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
We have 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 March 31, 2022, we had one forward contract outstanding to sell €7.5 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 forward contract is considered a Level 2 in the fair value hierarchy of our fair value measurements. For the three months ended March 31, 2022, and 2021, we recognized $0.2 million and $0.4 million, respectively, 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.