v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company utilizes fair value measurements for its financial assets and financial liabilities and fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is based upon a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
•Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
•Level 2 inputs are inputs other than unadjusted quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
•Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement.
Recurring fair value measurements
The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at June 28, 2025:
Fair Value Hierarchy
(in thousands)Level 1Level 2Level 3Total
Assets:
Money market funds$3,172 $— $— $3,172 
Marketable securities (1)
2,665 — — 2,665 
Forward contracts— 24 — 24 
Total$5,837 $24 $— $5,861 
Liabilities:
Forward contracts$— $1,881 $— $1,881 
Acquisition-related contingent consideration— — 788 788 
Total$— $1,881 $788 $2,669 
(1)Represents investments held in a rabbi trust associated with the Company’s deferred compensation plan which is included in “Prepaid expenses and other current assets” and “Other assets” in the accompanying unaudited interim Condensed Consolidated Balance Sheets.
The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at December 28, 2024:
Fair Value Hierarchy
(in thousands)Level 1Level 2Level 3Total
Assets:
Money market funds$57,000 $— $— $57,000 
Forward contracts— 4,574 — 4,574 
Total$57,000 $4,574 $— $61,574 
Liabilities:
Acquisition-related contingent consideration$— $— $2,000 $2,000 
Money market funds, consisting of short-term deposits with an original maturity of three months or less, are valued based on quoted market prices of identical assets and are classified within Level 1. Marketable securities are deferred compensation investments measured at fair value using unadjusted quoted market prices available from national securities exchanges and are classified within Level 1.
Forward contracts are fair valued using independent valuation services, and the valuations are based on observable market data. As such, the forward contracts are classified within Level 2. The Company reviews the independent valuation and obtains an understanding of the methods used in pricing the instruments.
The fair value of the acquisition-related contingent consideration liability is measured using the probability-weighted present value of the potential payment. The probability-weighted present value of the potential payment is based on significant unobservable inputs, including management estimates and assumptions. Accordingly, the fair value of acquisition-related contingent consideration has been classified within Level 3.
The following table provides quantitative information regarding Level 3 inputs used in the fair value measurement of the acquisition-related contingent consideration liability as of June 28, 2025:
Acquisition-Related Contingent Consideration Liability
Valuation Technique
Unobservable Inputs
Range
Potential payment
Probability-weighted present value
Probability of payment
0% - 100%
Discount rate
9.6%
Projected years of payments
2026 - 2027
The following table provides a reconciliation of the acquisition-related contingent consideration liability measured at fair value using Level 3 significant unobservable inputs:
(in thousands)
Balance at December 28, 2024$2,000 
Change in fair value recorded in selling, general and administrative
(326)
Balance at March 29, 20251,674 
Change in fair value recorded in selling, general and administrative
(886)
Balance at June 28, 2025$788 
Other fair value disclosures
The fair value of the Company’s Senior Secured Notes, based on Level 1 inputs, was $421.0 million and $467.6 million at June 28, 2025 and December 28, 2024, respectively. The fair value of borrowings under the Company’s Senior Secured Credit Facilities approximate their carrying value as the current rates approximate rates on similar debt and were based on rate notices provided by the Administrative Agent (Level 2 inputs) at June 28, 2025 and December 28, 2024.