Investments Available for Sale

9 Months Ended

Sep. 27, 2024

Investments, Debt and Equity Securities [Abstract]

Investments Available for Sale

Note 2 — Investments Available for Sale

Investments available for sale (“AFS”) and the related fair value measurement consisted of the following (dollars in thousands):

	September 27, 2024
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	10,582	$	10	$	(1	)	$	10,591	$	—	$	10,591
Certificates of deposit		253		1		—			254		—		254
U.S. Treasury securities		10,089		4		(6	)		10,087		10,087		—
U.S. agency securities		405		—		—			405		—		405
Corporate debt securities		50,566		57		(5	)		50,618		—		50,618
Total investments AFS	$	71,895	$	72	$	(12	)	$	71,955	$	10,087	$	61,868
	December 29, 2023
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	7,720	$	9	$	—		$	7,729	$	—	$	7,729
Certificates of deposit		3,716		4		—			3,720		—		3,720
U.S. Treasury securities		23,036		3		(56	)		22,983		22,983		—
U.S. agency securities		3,423		—		(4	)		3,419		—		3,419
Corporate debt securities		11,538		12		(10	)		11,540		—		11,540
Total investments AFS	$	49,433	$	28	$	(70	)	$	49,391	$	22,983	$	26,408

The Company determines the fair value of investments AFS with the assistance of third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers and other industry and economic events.

The Company assessed each debt security in a gross unrealized loss position to determine whether the decline in fair value below amortized cost was a result of credit losses or other factors, whether the Company expects to recover the amortized cost of the debt security, the Company’s intent to sell and whether it is more-likely-than-not that the Company will not be required to sell the debt security before the recovery of the amortized cost basis. The Company records changes to the allowance for expected credit losses in other income (expense), net. There has been no allowance for expected credit losses recorded for the three and nine months ended September 27, 2024 and the three and nine months ended September 29, 2023.

Note 2 — Investments Available for Sale (Continued)

The following table shows the fair value of investments AFS by contractual maturity (dollars in thousands):

	As of September 27, 2024
	Within one year		After one year through five years		Total
Commercial paper	$	10,591	$	—	$	10,591
Certificates of deposit		254		—		254
U.S. Treasury securities		10,087		—		10,087
U.S. agency securities		405		—		405
Corporate debt securities		50,618		—		50,618
Total investments AFS	$	71,955	$	—	$	71,955

During the nine months ended September 27, 2024, two of the Company’s investments AFS of $850,000, were subject to early redemption. The Company recognized a gain upon redemption of $2,000 during the nine months ended September 27, 2024. During the nine months ended September 29, 2023, one of the Company’s investments AFS was the subject of a downgraded credit rating. The Company sold its investments of $600,000 following the downgrade. The Company recognized a realized gain upon sale of $2,000 during the nine months ended September 29, 2023.