v3.26.1
Fair Value of Financial Instruments
9 Months Ended
Mar. 29, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Debt
The fair value and carrying value of our debt as of March 29, 2026 and June 29, 2025 are as follows:
March 29,
2026
June 29,
2025
Carrying value$1,776,863 $1,321,790 
Fair value1,674,863 1,316,993 
The fair value of our debt is estimated based on trading levels of lenders buying and selling their participation levels of funding (Level 2).
There were no transfers in or out of any of the levels of the valuation hierarchy during the three and nine months ended March 29, 2026 and the fiscal year ended June 29, 2025.
Items Measured at Fair Value on a Recurring Basis
The Company holds certain assets and liabilities that are required to be measured at fair value on a recurring basis. The following table is a summary of fair value measurements and hierarchy level as of March 29, 2026 and June 29, 2025:
March 29, 2026
Level 1Level 2Level 3Total
Earnout shares$— $— $5,009 $5,009 
Total liabilities$— $— $5,009 $5,009 


June 29, 2025
Level 1Level 2Level 3Total
Interest rate collars$— $16 $— $16 
Earnout shares— — 36,183 36,183 
Total liabilities$— $16 $36,183 $36,199 

The fair value of earnout shares was estimated using a Monte Carlo simulation model (level 3 inputs). The key inputs into the Monte Carlo simulation as of March 29, 2026 were as follows:
Earnout
Expected term in years0.71
Expected volatility50%
Risk-free interest rate3.76%
Stock price$7.93
Dividend yield3.03%

The following table sets forth a summary of changes in the estimated fair value of the Company's Level 3 Earnout liability for the three months ended March 29, 2026 and March 30, 2025:
Three Months EndedNine Months Ended
March 29,
2026
March 30,
2025
March 29,
2026
March 30,
2025
Balance as of beginning of period$12,748 $69,058 $36,183 $137,636 
Issuances— 12 25 
Changes in fair value(7,740)(18,886)(31,186)(87,489)
Balance as of end of period$5,009 $50,172 $5,009 $50,172 
Other Financial Instruments
Other financial instruments include cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses. The financial statement carrying amounts of these items approximate the fair value due to their short duration.