XML 25 R14.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Investments & Fair Value Measurements
 6 Months Ended
Mar. 29, 2024
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 unaudited interim 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, and these are carried at fair value and classified as other assets and other liabilities.
Our investments in debt securities consist of corporate bonds, government bonds, municipal debt securities, commercial paper, and U.S. agency securities. 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):
March 29, 2024
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$703,418 $— $— $703,418 $703,418 $— $— 
Cash equivalents:
Money market funds6,117 — — 6,117 6,117 — — 
Cash and cash equivalents709,535 — — 709,535 709,535 — — 
Short-term investments:
Government bonds32,281 2 (401)31,882 30,989 893 — 
Commercial paper14,952 1 (20)14,933 — 14,933 — 
Corporate bonds57,217 12 (244)56,985 — 56,985 — 
Municipal debt securities12,156 — (93)12,063 — 12,063 — 
Short-term investments116,606 15 (758)115,863 30,989 84,874 — 
Long-term investments:
Government bonds34,626 10 (221)34,415 34,415 — — 
Corporate bonds70,253 133 (232)70,154 — 70,154 — 
Municipal debt securities11,053 7 (39)11,021 — 11,021 — 
Other investments (1)
12,383 — — 12,383 — — — 
Long-term investments128,315 150 (492)127,973 34,415 81,175 — 
Total cash, cash equivalents, and investments$954,456 $165 $(1,250)$953,371 $774,939 $166,049 $— 
Investments held in supplemental retirement plan:
Assets$4,642 $— $— $4,642 $4,642 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,642 $— $— $4,642 $4,642 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $968 $— $968 $— $968 $— 
(1)Other investments as of March 29, 2024 is primarily comprised of an equity method investment of $6.9 million and an equity security without a readily determinable fair value, valued at $5.0 million. 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 unaudited interim condensed consolidated statements of operations. Our share of the equity method investee's net income was $3.6 million in the second quarter of fiscal 2024 and was not material in the second quarter of fiscal 2023. Our share of the equity method investee's net income was $6.9 million in the fiscal year-to-date period ended March 29, 2024 and was $1.7 million in the fiscal year-to-date period ended March 31, 2023.
September 29, 2023
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$602,288 $— $— $602,288 $602,288 $— $— 
Cash equivalents:
Commercial paper1,514 — — 1,514 — 1,514 — 
Money market funds139,831 — — 139,831 139,831 — — 
Government Bonds1,731 — — 1,731 1,731 — — 
Cash and cash equivalents745,364 — — 745,364 743,850 1,514 — 
Short-term investments:
Certificate of deposit530 — — 530 — 530 — 
U.S. agency securities5,956 1 (7)5,950 — 5,950 — 
Government bonds50,220 3 (384)49,839 46,246 3,593 — 
Commercial paper5,843 — (3)5,840 — 5,840 — 
Corporate bonds61,803 — (431)61,372 — 61,372 — 
Municipal debt securities15,801 — (184)15,617 — 15,617 — 
Short-term investments140,153 4 (1,009)139,148 46,246 92,902 — 
Long-term investments:
Government bonds33,227 — (1,046)32,181 32,181 — — 
Corporate bonds39,057 6 (589)38,474 — 38,474 — 
Municipal debt securities16,137 — (224)15,913 — 15,913 — 
Other investments (1)
11,244 — — 11,244 — — — 
Long-term investments99,665 6 (1,859)97,812 32,181 54,387 — 
Total cash, cash equivalents, and investments$985,182 $10 $(2,868)$982,324 $822,277 $148,803 $— 
Investments held in supplemental retirement plan:
Assets$4,400 $— $— $4,400 $4,400 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,400 $— $— $4,400 $4,400 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $144 $— $144 $— $144 $— 
Assets: included in other non-current assets— 2 — 2 — 2 — 
Liabilities: Included in other accrued liabilities— — (618)(618)— (618)— 
Liabilities: Included in other non-current liabilities— — (24)(24)— (24)— 
(1)Other investments as of September 29, 2023 is comprised of an equity method investment of $5.9 million and an equity security without a readily determinable fair value, valued at $5.0 million.
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 impairment by comparing the fair value with the cost basis for each of our investment securities. 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 greater than twelve months as of March 29, 2024 and September 29, 2023 (in thousands):
March 29, 2024September 29, 2023
Less Than 12 MonthsGreater Than 12 MonthsLess Than 12 MonthsGreater Than 12 Months
Investment TypeFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. agency securities$— $— $— $— $853 $(7)$— $— 
Government bonds29,859 (183)19,336 (440)26,756 (247)40,235 (1,183)
Commercial paper11,267 (20)— — 5,840 (3)— — 
Corporate bonds64,105 (200)14,763 (275)79,846 (461)14,634 (558)
Municipal debt securities11,641 (54)5,479 (78)23,365 (203)8,166 (206)
Total$116,872 $(457)$39,578 $(793)$136,660 $(921)$63,035 $(1,947)
Although we had certain securities that were in an unrealized loss position as of March 29, 2024 and September 29, 2023, 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 March 29, 2024 and September 29, 2023, which are recorded within cash equivalents and both short and long-term investments in our unaudited interim condensed consolidated balance sheets (in thousands):
March 29, 2024September 29, 2023
Range of maturityAmortized CostFair ValueAmortized CostFair Value
Due within 1 year$122,724 $121,980 $283,229 $282,225 
Due in 1 to 2 years85,045 84,737 67,679 66,075 
Due in 2 to 5 years30,887 30,853 20,743 20,493 
Total$238,656 $237,570 $371,651 $368,793