v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
10. Fair Value Measurements
Liabilities Measured at Fair Value on a Recurring Basis
Redeemable Noncontrolling Interest - Put Option
In November 2024, BioNova issued 111,111 preferred shares to SWEN in return for a redeemable noncontrolling interest of approximately 14 percent. The preferred shares contain an embedded put option that was determined should be bifurcated and recognized separately at fair value, with subsequent changes in fair value recorded in earnings.
SWEN’s put option was initially measured at a fair value of $4 million and will be remeasured at the end of each reporting period. The fair value of the put option is estimated using a Monte Carlo simulation model, which is a Level 3 measurement, with changes in fair value recorded in “other income, net” in the condensed consolidated statements of operations. The SWEN put option’s liability balance and activity during the three and six months ended June 28, 2025 were as follows:
Financial Statement
Line Item		Three Months Ended June 28, 2025Six Months Ended June 28, 2025
Balance at December 31, 2024
Other liabilities$4,196 
Fair value measurement adjustmentOther income, net$558 1,052 
Foreign currency translation adjustmentForeign currency
translation adjustment		$385 550 
Balance at June 28, 2025
Other liabilities$5,798 
There is inherent uncertainty of the fair value measurement of Level 3 securities due to the use of unobservable inputs, including timing and amount of expected cash flows. A material change in the unobservable inputs used may result in a higher or lower fair value measurement. Key inputs into the Monte Carlo simulation model used to determine the fair value of the SWEN put option at the fair value measurement date were as follows:
June 28, 2025December 31, 2024
Free cash flow to equity volatility(a)
46.0 %52.0 %
Risk-free interest rateTerm structure of U.S. Treasury and Euro Government Bond securitiesTerm structure of U.S. Treasury and Euro Government Bond securities
Weighted average cost of capital11.8 %12.1 %
(a)Based on a peer group of companies in the same or a similar industry.
See Note 11—Redeemable Noncontrolling Interest for further information on the put option.
Financial Instruments
The carrying amounts of the Company’s cash and cash equivalents, receivables and payables approximate fair value due to the short-term nature of those instruments. The carrying amount of borrowings outstanding under the ABL Credit Facility, 2029 Term Loan and short-term factoring facility approximate fair value due to their variable interest rates and no significant changes in the Company's credit risk.
The fair value of the Company’s fixed rate debt is estimated using quoted market prices for debt with similar terms and maturities, which are Level 2 inputs, and was as follows:
June 28, 2025December 31, 2024
Carrying amount of fixed rate debt(a)
$77,270 $75,142 
Fair value of fixed rate debt$79,146 $75,272 
(a)Excludes finance lease obligations.