v3.24.3
Fair Value Measurements
 12 Months Ended
Sep. 27, 2024
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
Our cash, cash equivalents, and investments declined significantly as a result of the business combinations entered into in fiscal 2024. Refer to Note 15 "Business Combinations" for more information. In general, we use cash holdings to purchase investment-grade securities diversified among security types, industries, and issuers.
Our cash and investment portfolio consisted of the following (in thousands):
September 27, 2024
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$482,047 $— $— $482,047 $482,047 $— $— 
Cash and cash equivalents$482,047 $— $— $482,047 $482,047 $— $— 
Long-term investments:
Other investments (1)
$89,267 $— $— $89,267 $— $— $76,000 
Long-term investments$89,267 $— $— $89,267 $— $— $76,000 
Total cash, cash equivalents, and investments$571,314 $— $— $571,314 $482,047 $— $76,000 
Investments held in supplemental retirement plan:
Assets$5,044 $— $— $5,044 $5,044 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$5,044 $— $— $5,044 $5,044 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $299 $— $299 $— $299 $— 
(1)Other investments as of September 27, 2024 is primarily comprised of our equity method investment in Access Advance of $83.9 million and an equity security without a readily determinable fair value, valued at $5.0 million. Other investments increased in fiscal 2024 as a result of our acquisition of GE Licensing. Refer to Note 15 for more information.
As of September 29, 2023, all of our investments in debt securities were measured at fair value, and were recorded within cash equivalents and both short-term and long-term investments in our 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 have been 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.
As of September 29, 2023, our investments in debt securities consisted of corporate bonds, government bonds, municipal debt securities, U.S. agency securities, commercial paper, and certificate of deposit. In addition, our cash and cash equivalents also consisted of highly-liquid money market funds, government bonds, and commercial paper. Consistent with our investment policy, none of our municipal debt investments have been supported by letters of credit or standby purchase agreements.
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 primarily comprised of our equity method investment in Access Advance 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.
The following table describes the valuation techniques and inputs applicable to each class of security held within our investment portfolio:
Asset TypePrimary SourceUpdate FrequencyFair Value MethodologySecondary Source
Level 1
Money Market FundsNot ApplicableDaily$1 per shareNot Applicable
U.S. Government BondsICE (Intercontinental Exchange)DailyInstitutional Bond Quotes - evaluations based on various market and industry inputsBloomberg
Level 2
Certificates of DepositICE (Intercontinental Exchange)DailyInstitutional Bond Quotes - evaluations based on various market and industry inputsBloomberg
Commercial PaperU.S. Bank Pricing UnitDailyMatrix PricingNot Applicable
Corporate BondsICE (Intercontinental Exchange)DailyInstitutional Bond Quotes - evaluations based on various market and industry inputsBloomberg
Municipal Debt SecuritiesICE (Intercontinental Exchange)DailyEvaluations based on various market and industry inputsBloomberg
U.S. Agency SecuritiesICE (Intercontinental Exchange)DailyInstitutional Bond Quotes - evaluations based on various market and industry inputsBloomberg
Int'l Government BondsICE (Intercontinental Exchange)
Extel Financial Ltd		DailyEvaluations based on various market factorsBloomberg
As a part of the acquisition of GE Licensing, we acquired GE Licensing’s ownership interest in Access Advance, which increased our equity method investment by $76 million. This increase in our investment was classified as Level 3 within the fair value hierarchy, and measured using the discounted cash flows method, whereby the cash flows expected to be generated by the business are discounted to their present value using a rate of return that reflects the relative risk of the investment and the time value of money. Inputs used in the valuation were the prospective financial information, including projected revenue associated with the investment, and discount rate to reflect the risk of the equity investment compared to the main operating business of GE Licensing. In determining the discount rate, a risk assessment was performed, where revenue growth was assessed, among other factors, and as such, revenue growth and the discount rate are considered interrelated unobservable inputs.
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 September 29, 2023 (in thousands):
September 29, 2023
Less Than 12 MonthsGreater Than 12 Months
Investment TypeFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. agency securities$853 $(7)$— $— 
Government bonds26,756 (247)40,235 (1,183)
Commercial paper5,840 (3)— — 
Corporate bonds79,846 (461)14,634 (558)
Municipal debt securities23,365 (203)8,166 (206)
Total$136,660 $(921)$63,035 $(1,947)
Although we had certain securities that were in an unrealized loss position as of 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 September 29, 2023, which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands):
Range of maturityAmortized CostFair Value
Due within 1 year$283,229 $282,225 
Due in 1 to 2 years67,679 66,075 
Due in 2 to 5 years20,743 20,493 
Total$371,651 $368,793