| Summary of Methods and Assumptions Used in Estimating Fair Value |
The below methods and assumptions were used by the Company in estimating the fair values of its financial instruments. There were no transfers of assets or liabilities between levels in any period presented.
| | | | | | | | | | | | | | | | Financial Instrument | | Fair Value
Level | | Methods and Assumptions | | Deferred compensation plan assets and liabilities | | Level 1 | | The fair value of the Company’s nonqualified deferred compensation plan for certain executives and other highly compensated employees is based on the fair values of associated assets and liabilities, which are held in mutual funds and are based on the quoted market prices of the securities held within the mutual funds. | | Short-term investments | | Level 1 | | The fair values of the Company’s Level 1 short-term investments, which are U.S. Treasury securities, corporate bonds and asset-backed securities, are based on the quoted market prices of those securities which are actively traded on national exchanges. | | Short-term investments | | Level 2 | | The fair values of the Company’s Level 2 short-term investments, which are commercial paper instruments, are based on estimated current market prices and have readily determinable fair market values. | | Commodity derivative instruments | | Level 2 | | The fair values of the Company’s commodity derivative instruments are based on current settlement values at each balance sheet date, which represent the estimated amounts the Company would have received or paid upon termination of those instruments. The Company’s credit risk related to the commodity derivative instruments is managed by requiring high standards for its counterparties and periodic settlements. The Company considers nonperformance risk in determining the fair values of commodity derivative instruments. | | Debt | | Level 2 | | The carrying amounts of the Company’s variable rate debt approximate the fair values due to variable interest rates with short reset periods. The fair values of the Company’s fixed rate debt are based on estimated current market prices. | | Acquisition related contingent consideration | | Level 3 | | The fair value of the Company’s acquisition related contingent consideration is based on internal forecasts and the weighted average cost of capital (“WACC”) derived from market data. |
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| Summary of Deferred Compensation Plan, Commodity Derivative Instruments, Debt and Acquisition Related Contingent Consideration |
The following tables summarize the carrying amounts and the fair values by level of the Company’s deferred compensation plan assets and liabilities, short-term investments, commodity derivative instruments, debt and acquisition related contingent consideration:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 27, 2025 | | (in thousands) | | Carrying
Amount | | Total
Fair Value | | Fair Value
Level 1 | | Fair Value
Level 2 | | Fair Value
Level 3 | | Assets: | | | | | | | | | | | | Deferred compensation plan assets | | $ | 89,612 | | | $ | 89,612 | | | $ | 89,612 | | | $ | — | | | $ | — | | | Short-term investments | | 350,186 | | | 350,186 | | | 338,597 | | | 11,589 | | | — | | | Commodity derivative instruments | | 3,847 | | | 3,847 | | | — | | | 3,847 | | | — | | | Liabilities: | | | | | | | | | | | | Deferred compensation plan liabilities | | 89,612 | | | 89,612 | | | 89,612 | | | — | | | — | | | | | | | | | | | | | | Debt | | 1,787,669 | | | 1,828,300 | | | — | | | 1,828,300 | | | — | | | Acquisition related contingent consideration | | 675,300 | | | 675,300 | | | — | | | — | | | 675,300 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | (in thousands) | | Carrying
Amount | | Total
Fair Value | | Fair Value
Level 1 | | Fair Value
Level 2 | | Fair Value
Level 3 | | Assets: | | | | | | | | | | | | Deferred compensation plan assets | | $ | 81,123 | | | $ | 81,123 | | | $ | 81,123 | | | $ | — | | | $ | — | | | Short-term investments | | 301,210 | | | 301,210 | | | 283,547 | | | 17,663 | | | — | | | Commodity derivative instruments | | 2,472 | | | 2,472 | | | — | | | 2,472 | | | — | | | Liabilities: | | | | | | | | | | | | Deferred compensation plan liabilities | | 81,123 | | | 81,123 | | | 81,123 | | | — | | | — | | | Debt | | 1,786,348 | | | 1,803,500 | | | — | | | 1,803,500 | | | — | | | Acquisition related contingent consideration | | 654,191 | | | 654,191 | | | — | | | — | | | 654,191 | |
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| Summary of Acquisition Related Contingent Consideration Liability |
A summary of the Level 3 activity is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Second Quarter | | First Half | | (in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | Beginning balance - Level 3 liability | | $ | 681,800 | | | $ | 649,596 | | | $ | 654,191 | | | $ | 669,337 | | | Payments of acquisition related contingent consideration | | (15,390) | | | (13,976) | | | (35,209) | | | (23,676) | | | Reclassification to current payables | | (3,500) | | | (6,200) | | | 1,200 | | | (10,700) | | | Increase in fair value | | 12,390 | | | 27,826 | | | 55,118 | | | 22,285 | | | Ending balance - Level 3 liability | | $ | 675,300 | | | $ | 657,246 | | | $ | 675,300 | | | $ | 657,246 | |
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