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Fair Value Measurements
 9 Months Ended
Sep. 29, 2023
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, 2023
Level 1Level 2Total
Commercial paper$— $386,363 $386,363 
Corporate bonds— 820,095 820,095 
U.S. Treasury and government-sponsored enterprises— 435,826 435,826 
Municipal bonds— 5,915 5,915 
Total debt securities available-for-sale— 1,648,199 1,648,199 
Money market funds182,464 — 182,464 
Certificates of deposit— 84,404 84,404 
Total financial assets carried at fair value$182,464 $1,732,603 $1,915,067 
December 31, 2022
Level 1Level 2Total
Commercial paper$— $722,018 $722,018 
Corporate bonds— 797,848 797,848 
U.S. Treasury and government-sponsored enterprises— 332,587 332,587 
Municipal bonds— 16,162 16,162 
Total debt securities available-for-sale— 1,868,615 1,868,615 
Money market funds94,344 — 94,344 
Certificates of deposit— 103,681 103,681 
Total financial assets carried at fair value$94,344 $1,972,296 $2,066,640 
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 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 exchange rates associated with assets or liabilities denominated in foreign currencies, primarily the Euro.
As of September 30, 2023, we had one forward contract outstanding to sell €3.9 million. The forward contract with a maturity of three months is recorded at fair value and is included in other current liabilities in the accompanying Condensed Consolidated Balance Sheets. The unrealized loss on the forward contract is immaterial as of September 30, 2023. The forward contract is considered a Level 2 in the fair value hierarchy of our fair value measurements. The net realized gains we recognized on the maturity of forward contracts were immaterial for the nine months ended September 30, 2023 and $1.5 million for the corresponding prior year period. Realized and unrealized gains and losses on our forward contracts are included in other income (expense), net on our Condensed Consolidated Statements of Income.