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Fair Value Measurements
 6 Months Ended
Jun. 28, 2024
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):
June 30, 2024
Level 1Level 2Total
Commercial paper$— $189,302 $189,302 
Corporate bonds— 762,090 762,090 
U.S. Treasury and government-sponsored enterprises— 317,870 317,870 
Municipal bonds— 7,865 7,865 
Total debt securities available-for-sale— 1,277,127 1,277,127 
Money market funds116,234 — 116,234 
Certificates of deposit— 40,943 40,943 
Total financial assets carried at fair value$116,234 $1,318,070 $1,434,304 
December 31, 2023
Level 1Level 2Total
Commercial paper$— $214,016 $214,016 
Corporate bonds— 868,245 868,245 
U.S. Treasury and government-sponsored enterprises— 407,321 407,321 
Municipal bonds— 7,841 7,841 
Total debt securities available-for-sale— 1,497,423 1,497,423 
Money market funds154,287 — 154,287 
Certificates of deposit— 72,309 72,309 
Total financial assets carried at fair value$154,287 $1,569,732 $1,724,019 
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.
When necessary, we record impairments of long-lived assets for the amount by which the fair value is less than the carrying value of these assets. When an impairment indicator exists, we calculate the undiscounted value of the projected cash flows for the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is greater, we record an impairment loss for the excess of carrying value over fair value. In addition, in all cases of an impairment review, we reevaluate the remaining useful lives of the assets and modify them, as appropriate. In connection with the 2024 Restructuring Plan, we determined certain long-lived assets were impaired. The fair value was determined using an income approach where certain Level 3 inputs were used, including estimates and assumptions on the timing and amount of discounted cash flows. See “Note 11. Restructuring” for additional information.
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 foreign currency exchange contracts that are not designated as hedges for accounting purposes 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 June 30, 2024, we had one forward contract outstanding to sell €1.8 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 June 30, 2024. The forward contract is considered a Level 2 in the fair value hierarchy of our fair value measurements. The net realized and unrealized gains (losses) we recognized on the maturity of forward contracts were immaterial for each of the three and six months ended June 30, 2024 and 2023 and are included in other expense, net on our Condensed Consolidated Statements of Income.