FAIR VALUE AND FINANCIAL INSTRUMENTS
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
We measure certain assets and liabilities at fair value on a recurring basis such as our financial instruments. There have been no transfers between Level 1, 2 or 3 assets or liabilities during the fiscal year ended October 3, 2025 and September 27, 2024.
Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands):
 
October 3, 2025
Fair ValueActive Markets for Identical Assets
(Level 1)
Observable Inputs
(Level 2)
Unobservable Inputs
(Level 3)
Assets
Money market funds$63,811 $63,811 $— $— 
U.S. Treasuries and agency bonds66,738 45,373 21,365 — 
Corporate bonds557,579 — 557,579 — 
Commercial paper49,516 — 49,516 — 
Total assets measured at fair value$737,644 $109,184 $628,460 $— 
September 27, 2024
Fair ValueActive Markets for Identical Assets
(Level 1)
Observable Inputs
(Level 2)
Unobservable Inputs
(Level 3)
Assets
Money market funds$74,760 $74,760 $— $— 
Certificate of deposits980 980 — — 
U.S. Treasuries and agency bonds55,162 50,163 4,999 — 
Corporate bonds305,150 — 305,150 — 
Commercial paper73,790 — 73,790 — 
Total assets measured at fair value$509,842 $125,903 $383,939 $— 
Liabilities
Non-designated foreign currency hedge contracts$100 $— $100 $— 
Total Liabilities at fair value$100 $— $100 $— 
Derivatives
We have foreign currency exposure arising from certain of our Euro and Yen denominated intercompany debt. We have entered into foreign currency exchange hedging contracts associated with this debt to partially mitigate the impact of currency rate changes. They are not designated as cash flow or fair value hedges under ASC 815. Changes in fair value are reported in current period earnings. These gains and losses are intended to offset the gains and losses recorded on the associated intercompany debt. We do not use derivative financial instruments for trading or speculation purposes.
As of October 3, 2025 and September 27, 2024, we had $36.0 million and $34.4 million, respectively in notional forward foreign currency contracts, which were denominated in Euro and Yen. As of October 3, 2025 and September 27, 2024, the fair value of derivative instruments not designated as hedges was immaterial.

Historical Timeline

Fiscal YearFiled
2025Nov 14, 2025Showing above
2024Nov 12, 2024
2023Nov 13, 2023
2022Nov 14, 2022
2021Nov 15, 2021
2020Nov 18, 2020
2019Nov 26, 2019
2018Nov 16, 2018
2017Nov 15, 2017
2016Nov 17, 2016
2015Nov 24, 2015

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.