v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 27, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
9. Fair Value Measurements
The Company is required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair value. The fair values of financial instruments are estimates based upon market conditions and perceived risks. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities.
The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy:
•Level 1 - Inputs are based on quoted prices in active markets for identical assets and liabilities.
•Level 2 - Inputs are based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.
•Level 3 - One or more inputs are unobservable and significant.
Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, and accounts payable. The carrying amount of these instruments approximate fair value because of their short-term nature.
The Company’s interest rate swaps, net investment hedge and foreign exchange contracts are measured in the financial statements at fair value on a recurring basis. The fair values of these instruments are estimated using industry standard valuation models using market-based observable inputs, including interest rate curves. These instruments are customary, over-the-counter contracts with various bank counterparties. Accordingly, the fair value measurements of the interest rate swaps, net investment hedge and foreign exchange contracts are categorized as Level 2.
The Company’s investment plan assets as part of the nonqualified Hayward Industries Supplemental Retirement Plan (the “Supplemental Retirement Plan”) are presented in the financial statements at fair value on a recurring basis and are based on quoted market prices in active markets. Accordingly, the fair value measurements of the Supplemental Retirement Plan assets are categorized as Level 1. The value of investments related to the Supplemental Retirement Plan is included in other assets and a corresponding liability to participants is recorded in other liabilities.
The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis (in thousands):
June 27, 2026December 31, 2025
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets:
Interest rate swaps
$— $6,467 $— $6,467 $— $4,680 $— $4,680 
Foreign exchange contracts
— 974 — 974 — 129 — 129 
Net investment hedge— 1,596 1,596 — — — — 
Supplemental Retirement Plan assets
12,977 — — 12,977 10,405 — — 10,405 
Liabilities:
Interest rate swaps
$— $— $— $— $— $302 $— $302 
Foreign exchange contracts
— 190 — 190 — 884 — 884 
Supplemental Retirement Plan liabilities
12,977 — — 12,977 10,405 — — 10,405 
The estimated fair value of the long-term debt and related current maturities (excluding finance leases and other bank debt) is based on observable quoted prices in active markets for similar liabilities and is classified as a Level 2 input. The Company’s short-term investments are held-to-maturity fixed income securities and carried at amortized cost.
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value (in thousands):
June 27, 2026December 31, 2025
Carrying ValueFair ValueCarrying ValueFair Value
Assets:
Short-term investments
Commercial paper (1)
$79,263 $79,263 $69,462 $69,462 
Time deposits100,000 100,000 $— $— 
Liabilities:
Long-term debt and related current maturities$960,000 $962,400 $955,000 $960,969 
(1) As of June 27, 2026 and December 31, 2025, the Company held $79.3 million and $69.5 million, respectively, in held-to-maturity debt securities with maturity dates within one year. The fair value of the Company's held-to-maturity debt securities approximates their amortized cost.