v3.26.1
Fair Value of Financial Instruments
 4 Months Ended
Apr. 25, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

The company financed approximately 2,500 IDPs’ distribution rights as of April 25, 2026 and January 3, 2026, all with varied financial histories and credit risks. Interest income recognized by the company mostly relates to these notes receivable.

 

At April 25, 2026 and January 3, 2026, respectively, the carrying value of the distributor notes receivable was as follows (amounts in thousands):

 

 

 

April 25, 2026

 

 

January 3, 2026

 

Distributor notes receivable

 

$

129,263

 

 

$

130,723

 

Less: current portion of distributor notes receivable recorded in
   accounts and notes receivable, net

 

 

(21,035

)

 

 

(22,241

)

Long-term portion of distributor notes receivable

 

$

108,228

 

 

$

108,482

 

The fair value of the company’s variable rate debt at April 25, 2026 approximates the recorded value. The fair value of the company's senior notes, as discussed in Note 14, Debt and Other Obligations, of this Form 10-Q, are estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements and are considered a Level 2 valuation. The fair value of the senior notes are presented in the table below (amounts in thousands, except level classification):

 

 

 

Carrying Value

 

 

Fair Value

 

 

Level

3.500% senior notes due 2026 ("2026 notes")

 

$

399,753

 

 

$

398,392

 

 

2

2.400% senior notes due 2031 ("2031 notes")

 

$

496,421

 

 

$

432,113

 

 

2

5.750% senior notes due 2035 ("2035 notes")

 

$

494,952

 

 

$

486,994

 

 

2

6.200% senior notes due 2055 ("2055 notes")

 

$

294,646

 

 

$

251,296

 

 

2

 

For fair value disclosure information about our derivative assets and liabilities and an explanation of the level classifications are in Note 10, Derivative Financial Instruments.