Fair Value Measurements

6 Months Ended

Jan. 27, 2024

Our financial instruments consist of cash, cash equivalents, investments, accounts payable, and accrued liabilities. At January 27, 2024 and July 29, 2023, the carrying values of cash, accounts payable, and accrued liabilities approximated fair value due to their short-term nature. We measure our cash equivalents and investments at fair value within Level 1 or Level 2 of the fair value hierarchy because we value these investments using unadjusted, quoted market prices; or alternative pricing sources and models utilizing market observable inputs, respectively.

Our cash equivalents and investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis as of January 27, 2024 and July 29, 2023 were as follows:


	January 27, 2024								July 29, 2023
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	127,499	$	—	$	—	$	127,499	$	80,251	$	—	$	—	$	80,251
Investments:
U.S. Treasury securities	272		—		—		272		7,226		—		—		7,226
Corporate bonds	—		2,049		—		2,049		—		10,935		—		10,935
Total	$	127,771	$	2,049	$	—	$	129,820	$	87,477	$	10,935	$	—	$	98,412

There were no transfers of financial assets or liabilities into or out of Level 1, Level 2, or Level 3 during the three and six months ended January 27, 2024 or January 28, 2023.

The following table sets forth the amortized cost, gross unrealized losses, and fair values of our investments accounted for as available-for-sale securities as of January 27, 2024 and July 29, 2023:


	January 27, 2024				July 29, 2023
(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Losses		Fair Value
Investments:
U.S. Treasury securities	$	272	$	—	$	272	$	7,266	$	(40)	$	7,226
Corporate bonds	2,051		(2)		2,049		11,069		(134)		10,935
Total	$	2,323	$	(2)	$	2,321	$	18,335	$	(174)	$	18,161

The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of January 27, 2024 were as follows:


	Less Than 12 Months				More Than 12 Months				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Investments:

Corporate bonds	—		—		2,049		(2)		2,049		(2)
Total	$	—	$	—	$	2,049	$	(2)	$	2,049	$	(2)

The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of July 29, 2023 were as follows:


	Less Than 12 Months				More Than 12 Months				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Investments:
U.S. Treasury securities	$	265	$	(1)	$	6,961	$	(39)	$	7,226	$	(40)
Corporate bonds	—		—		10,935		(134)		10,935		(134)
Total	$	265	$	(1)	$	17,896	$	(173)	$	18,161	$	(174)

The total fair value of investments in a continuous unrealized loss and the related gross unrealized losses have both decreased since July 29, 2023, due to maturities and approaching maturities of our investments during the six months ended January 27, 2024. We evaluate securities for expected credit losses on a quarterly basis with consideration given to the financial condition and near-term prospects of the issuer, whether we intend to sell the securities, and whether it is more likely than not that we will be required to sell the securities before recovery of their amortized cost basis. As of January 27, 2024, the losses on our available-for-sale securities were immaterial. We have the current intent and ability to retain these securities until maturity or recovery of the amortized cost basis. Therefore, expected credit losses as of January 27, 2024 were immaterial.

The fair values of available-for-sale securities by contractual maturity as of January 27, 2024 were as follows:


	January 27, 2024
(in thousands)	One Year or Less		Over One Year Through Five Years		Over Five Years		Total
Investments:
U.S. Treasury securities	$	272	$	—	$	—	$	272
Corporate bonds	2,049		—		—		2,049
Total	$	2,321	$	—	$	—	$	2,321

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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