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Investments & Fair Value Measurements
 6 Months Ended
Apr. 01, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Investments & Fair Value Measurements . Investments and Fair Value Measurements
We use cash holdings to purchase investment grade securities diversified among security types, industries, and issuers. All of our investments in debt securities are measured at fair value, and are recorded within cash equivalents and both short-term and long-term investments in our condensed consolidated balance sheets. With the exception of our mutual fund investments held in our SERP and classified as trading securities and our other long-term investments, all of our investments are classified as AFS securities. Derivative contracts are used to hedge currency risk, these are carried at fair value and classified as other assets and other liabilities.
Our investments in debt securities primarily consist of corporate bonds, municipal debt securities, government bonds, commercial paper, U.S. agency securities, and certificates of deposit. In addition, our cash and cash equivalents also consist of highly-liquid money market funds. Consistent with our investment policy, none of our municipal debt investments are supported by letters of credit or standby purchase agreements. Our cash and investment portfolio consisted of the following (in thousands):
April 1, 2022
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$665,624 $— $— $665,624 $665,624 $— $— 
Cash equivalents:
Certificate of deposit2,899 — — 2,899 — 2,899 — 
Commercial paper7,407 — — 7,407 — 7,407 — 
Money market funds207,458 — — 207,458 207,458 — — 
Municipal debt securities7,010 — (1)7,009 — 7,009 — 
Government bonds9,996 — — 9,996 9,996 — — 
Cash and cash equivalents900,394 — (1)900,393 883,078 17,315 — 
Short-term investments:
Certificate of deposit8,685 1 (23)8,663 — 8,663 — 
U.S. agency securities812 1 — 813 — 813 — 
Government bonds46,761 1 (202)46,560 43,904 2,656 — 
Commercial paper20,189 — (36)20,153 — 20,153 — 
Corporate bonds44,824 8 (206)44,626 — 44,626 — 
Municipal debt securities20,919 3 (49)20,873 — 20,873 — 
Short-term investments142,190 14 (516)141,688 43,904 97,784 — 
Long-term investments:
U.S. agency securities1,450 — (43)1,407 — 1,407 — 
Government bonds55,544 — (1,679)53,865 49,897 3,968 — 
Corporate bonds43,704 2 (1,149)42,557 — 42,557 — 
Municipal debt securities18,462 — (377)18,085 — 18,085 — 
Other investments (1)
8,228 — — 8,228 — — — 
Long-term investments127,388 2 (3,248)124,142 49,897 66,017 — 
Total cash, cash equivalents, and investments$1,169,972 $16 $(3,765)$1,166,223 $976,879 $181,116 $— 
Investments held in supplemental retirement plan:
Assets$4,623 $— $— $4,623 $4,623 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,623 $— $— $4,623 $4,623 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $486 $— $486 $— $486 $— 
Liabilities: Included in other accrued liabilities— — (324)(324)— (324)— 
(1)Other investments as of April 1, 2022 is comprised of an equity method investment and an equity security without a readily determinable fair value measured under the "measurement alternative" (at cost, minus impairment or adjusted for any observable price changes). The equity method investment is measured at cost minus impairment, if any, adjusted for our proportionate share of the investee's net income or loss. Our share of the equity method investee's net income or loss is included in other income/(expense), net on the condensed consolidated statements of operations, and was not material in the second quarter of fiscal 2022 and year-to-date period ended April 1, 2022. Our share of the investee's net income or loss was not material in the second quarter of fiscal 2021 and was $1.9 million in the year-to-date period ended March 26, 2021.
September 24, 2021
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$990,182 $— $— $990,182 $990,182 $— $— 
Cash equivalents:
Money market funds235,198 — — 235,198 235,198 — — 
Cash and cash equivalents1,225,380 — — 1,225,380 1,225,380 — — 
Short-term investments:
Certificate of deposit1,795 — — 1,795 — 1,795 — 
U.S. agency securities1,096 6 — 1,102 — 1,102 — 
Government bonds100 2 — 102 102 — — 
Commercial paper5,184 2 — 5,186 — 5,186 — 
Corporate bonds18,850 116 — 18,966 — 18,966 — 
Municipal debt securities11,660 29 (1)11,688 — 11,688 — 
Short-term investments38,685 155 (1)38,839 102 38,737 — 
Long-term investments:
U.S. agency securities2,264 13 (2)2,275 — 2,275 — 
Government bonds11,784 38 (16)11,806 4,966 6,840 — 
Corporate bonds32,116 61 (25)32,152 — 32,152 — 
Municipal debt securities10,080 58 (8)10,130 — 10,130 — 
Other investments (1)
6,456 — — 6,456 — — — 
Long-term investments62,700 170 (51)62,819 4,966 51,397 — 
Total cash, cash equivalents, and investments$1,326,765 $325 $(52)$1,327,038 $1,230,448 $90,134 $— 
Investments held in supplemental retirement plan:
Assets$4,975 $— $— $4,975 $4,975 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,975 $— $— $4,975 $4,975 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $689 $— $689 $— $689 $— 
Liabilities: Included in other accrued liabilities— — (197)(197)— (197)— 

(1)Other investments as of September 24, 2021 is comprised of one equity method investment, which is measured at cost minus impairment, if any, adjusted for our proportionate share of the investee’s net income or loss.
Fair Value Hierarchy.    Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. We minimize the use of unobservable inputs and use observable market data, if available, when determining fair value. We classify our inputs to measure fair value using the following three-level hierarchy:
Level 1: Quoted prices in active markets at the measurement date for identical assets and liabilities. We base the fair value of our Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
Level 2: Prices may be based upon quoted prices in active markets or inputs not quoted on active markets but are corroborated by market data. We obtain the fair value of our Level 2 financial instruments from a professional pricing service, which may use quoted market prices for identical or comparable instruments, or model driven valuations using observable market data or inputs corroborated by observable market data. To validate the fair value determination provided by our primary pricing service, we perform quality controls over values received which include comparing our pricing service provider’s assessment of the fair values of our investment securities against the fair values of our investment securities obtained from another independent source, reviewing the pricing movement in the context of overall market trends, and reviewing trading information from our investment managers. In addition, we assess the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The fair value of the currency derivatives are calculated from market spot rates, forward rates, interest rates, and credit ratings at the end of the period.
Level 3: Unobservable inputs are used when little or no market data is available and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Securities In Gross Unrealized Loss Position.    We periodically evaluate our investments for other-than- temporary declines in fair value. The unrealized losses on our AFS securities were primarily the result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position for less than twelve months and for twelve months or greater as of April 1, 2022 and September 24, 2021 (in thousands):
April 1, 2022September 24, 2021
Less Than 12 Months12 Months Or GreaterLess Than 12 Months
Investment TypeFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Certificate of deposit$8,213 $(23)$— $— $600 $— 
U.S. agency securities872 (24)537 (19)1,449 (2)
Government bonds106,409 (1,788)2,743 (93)8,940 (16)
Commercial paper22,139 (36)— — — — 
Corporate bonds80,242 (1,337)548 (18)22,964 (25)
Municipal debt securities39,803 (427)— — 7,031 (9)
Total$257,678 $(3,635)$3,828 $(130)$40,984 $(52)
As of September 24, 2021, there were no gross unrealized losses and no AFS securities that were in an unrealized loss position for twelve months or greater. Although we had certain securities that were in an unrealized loss position as of April 1, 2022 and September 24, 2021, we expect to recover the full carrying value of these securities.
Investment Maturities.    The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of April 1, 2022 and September 24, 2021, which are recorded within cash equivalents and both short and long-term investments in our condensed consolidated balance sheets (in thousands):
April 1, 2022September 24, 2021
Range of maturityAmortized CostFair ValueAmortized CostFair Value
Due within 1 year$374,721 $374,230 $273,884 $274,037 
Due in 1 to 2 years80,967 79,133 40,739 40,874 
Due in 2 to 5 years39,754 38,331 15,506 15,490 
Total$495,442 $491,694 $330,129 $330,401