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Derivative Financial Instruments
 12 Months Ended
Dec. 27, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Foreign Exchange Derivative Contracts
We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities and forecasted foreign currency revenue and expense transactions. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses.

We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts have been designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded as a component of Accumulated other comprehensive loss and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. At December 27, 2025, we have no foreign currency forward contracts that are designated as hedging instruments outstanding.
The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All of our foreign exchange derivative contracts outstanding at December 27, 2025 will mature by the first quarter of fiscal 2026.

The following table provides information about our foreign currency forward contracts outstanding as of December 27, 2025 (in thousands):
CurrencyContract PositionContract Amount (Local Currency)Contract Amount (U.S. Dollars)
EuroSell8,288 9,764 
Japanese YenSell4,074,044 26,077 
Korean WonBuy4,648,606 3,228 
Taiwan DollarSell153,567 4,872 

Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs.

The location and amount of gains related to non-designated derivative instruments in the Consolidated Statements of Income were as follows (in thousands):
Derivatives Not Designated as Hedging InstrumentsLocation of Gain RecognizedFiscal Year Ended
December 27, 2025December 28, 2024December 30, 2023
Foreign exchange forward contractsOther income (expense), net$1,603 $2,225 $2,504 

The location and amount of gains (losses) related to foreign currency derivative instruments designated as cash flow hedges on our Consolidated Statements of Income was as follows (in thousands):
Amount of Gain or (Loss) Recognized in AOCL on DerivativeLocation of Gain or (Loss) Reclassified from AOCL into IncomeAmount of Gain or (Loss) Reclassified from AOCL into Income
Fiscal 2025$2,716 Cost of revenues$1,016 
Research and development235 
Selling, general and administrative324 
$1,575 
Fiscal 2024$(2,023)Cost of revenues$(389)
Research and development(141)
Selling, general and administrative(98)
$(628)
Fiscal 2023$160 Cost of revenues$222 
Research and development75 
Selling, general and administrative80 
$377 

Interest Rate Swaps
During fiscal 2020, we entered into an interest rate swap agreement with Union Bank, succeeded by U.S. Bank National Association to hedge the interest payments on the Building Term Loan for the notional amount of $18.0 million. As future levels of LIBOR over the life of the loan are uncertain, we entered into this interest-rate swap agreement to hedge the exposure in interest rate risks associated with movement in LIBOR rates. By entering into the agreement, we convert a floating rate interest at one-month LIBOR plus 1.75% into a fixed rate interest at 2.75%. This agreement was amended in fiscal 2023 to replace the benchmark reference rate LIBOR with SOFR to match the Building Term Loan agreement (as amended). After the amendment, the interest rate swap continues to convert our floating-rate interest into a fixed-rate at 2.75%. As of December 27, 2025, the notional amount of the loan that is subject to this interest rate swap was $12.3 million. See Note 6, Debt, for additional information.
For accounting purposes, the interest-rate swap contracts qualify for and are designated as cash flow hedges. All hedging relationships are formally documented, and the hedges are designed to offset changes to future cash flows on hedged transactions. We evaluate hedge effectiveness at hedge inception and on an ongoing basis.

The fair value of our interest rate swap contracts are determined at the end of each reporting period based on valuation models that use interest rate yield curves as inputs. The cash flows associated with the interest rate swaps are reported in Net cash provided by operating activities in our Consolidated Statements of Cash Flows and the fair value of the interest rate swap contracts are recorded within Prepaid expenses and other current assets and Other assets.

The impact of the interest rate swaps on the Consolidated Statements of Income was as follows (in thousands):
Amount of Gain (Loss) Recognized in AOCL on Derivative (Effective Portion)Location of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion)Amount of Gain Reclassified from AOCL into Income (Effective Portion)
Fiscal 2025$(169)Other income (expense), net$435 
Fiscal 2024638 Other income (expense), net602 
Fiscal 2023230 Other income (expense), net615 

See also Note 10, Fair Value.