v3.25.1
Fair Value Measures
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measures

(13) Fair Value Measures

The Company measures at fair value its financial and non-financial assets by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability.

The carrying amount and estimated fair value of the Company’s financial instruments were as follows:

 

 

 

As of

 

 

 

March 31, 2025

 

 

December 30, 2024

 

 

 

Carrying Amount

 

 

Fair Value

 

 

Carrying Amount

 

 

Fair Value

 

 

 

(In thousands)

 

Derivative assets, current

 

$

1,423

 

 

$

1,423

 

 

$

1,765

 

 

$

1,765

 

Derivative assets, non-current

 

 

—

 

 

 

—

 

 

 

1,326

 

 

 

1,326

 

Derivative liabilities, current

 

 

—

 

 

 

—

 

 

 

667

 

 

 

667

 

Derivative liabilities, non-current

 

 

136

 

 

 

136

 

 

 

—

 

 

 

—

 

Senior Notes due March 2029

 

 

496,824

 

 

 

461,635

 

 

 

496,638

 

 

 

464,325

 

Term Loan due May 2030

 

 

338,592

 

 

 

346,278

 

 

 

339,205

 

 

 

346,930

 

ABL Revolving Loans

 

 

80,000

 

 

 

80,000

 

 

 

80,000

 

 

 

80,000

 

Other loan

 

 

2,230

 

 

 

2,230

 

 

 

2,311

 

 

 

2,311

 

 

The fair value of the derivative instruments was determined using pricing models developed based on the 1-month Chicago Mercantile Exchange (CME) Term Secured Overnight Financing Rate (SOFR) swap rate and other observable market data, including quoted market prices, as appropriate using Level 2 inputs. The values were adjusted to reflect non-performance risk of both the counterparty and the Company, as necessary.

The fair value of the long-term debt was estimated based on quoted market prices or discounting the debt over its life using current market rates for similar debt as of March 31, 2025 and December 30, 2024, which are considered Level 2 inputs.

As of March 31, 2025 and December 30, 2024, the Company’s other financial instruments included cash and cash equivalents, accounts receivable, contract assets, accounts payable, and contract liabilities. The carrying amount of these instruments approximates fair value.

The majority of the Company’s non-financial assets and liabilities, which include goodwill, intangible assets, inventories, and property, plant, and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or as indicated by the annual test in the case of goodwill) such that a non-financial instrument is required to be evaluated for impairment, based upon a comparison of the non-financial instrument’s fair value to its carrying value, an impairment is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value.