Fair Value Measurements |
6 Months Ended |
|---|---|
Jun. 27, 2026 | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | Note 6 – Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or transaction between market participants at the measurement date. (1) market participant assumptions developed based on market data obtained inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the in active markets for identical assets or liabilities (Level 1) and the lowest priority The three levels of the fair value hierarchy are described as follows: • measurement date. • either directly or indirectly. quoted prices for identical or similar assets or liabilities in markets prices that are observable for the asset or liability; and inputs that are observable market data by correlation or other means. • The following section describes the fair values of our financial instruments measure their fair values. Investments and notes receivable There are no quoted market prices available for investments in unconsolidated Certain of our notes receivable contain variable interest rates. receivable are a reasonable estimate of fair value based on the interest rates receivable fair value is based on Level 3 inputs within the fair value Debt The fair value of our debt (including bank credit lines, current maturities based on Level 3 inputs within the fair value hierarchy, and as of June 27, 2026 and December 27, 2025 was estimated at $ 3,462 3,107 value of our debt include market conditions, such as interest rates and credit Derivative contracts Derivative contracts are valued using quoted market prices and instruments primarily include foreign currency forward contracts, interest The fair values for the majority of our foreign currency derivative contracts are rate to a published forward price of the underlying market rates, which transactions that are classified within Level 2 of the fair value hierarchy. The fair value of the interest rate swap, which is classified within Level 2 by comparing our contract rate to a forward market rate as of the The fair value of total return swaps is determined by valuing the underlying using market-on-close pricing by industry providers as of the valuation fair value hierarchy. Redeemable noncontrolling interests The values for redeemable noncontrolling interests are based on recent earnings that are classified within Level 3 of the fair value hierarchy. Intangible Assets Assets measured on a non-recurring basis at fair value include intangibles. classified as Level 3 within the fair value hierarchy. Defined Benefit Plans Assets of certain of our non-U.S. defined benefit plans are measured on 1 within the fair value hierarchy. Contingent Consideration We estimate the fair value of contingent consideration payments as part of the acquisition price and record the estimated fair value of contingent consideration as a liability on our transactions accounted for as business combinations, subsequent changes consideration payments are included in selling, general and administrative statements of income For transactions involving changes in our ownership in consolidated subsidiaries without a change in our control, subsequent contingent consideration payments are recognized in additional paid-in balance sheets. unobservable inputs classified as Level 3 of the fair value hierarchy. including the Monte Carlo simulation and probability-weighted scenarios, contingent consideration liabilities on the acquisition date and at each measurement inputs include expected operating performance, discount The components of the change in the fair value of contingent consideration 27, 2026 and June 28, 2025 are presented in the following table: Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Balance, beginning of period $ 64 $ 112 $ 97 $ 30 Increase in contingent consideration due to business acquisitions and acquisitions of noncontrolling interests in subsidiaries - 1 - 94 Decrease in contingent consideration due to payments (4) (7) (4) (19) Change in fair value of contingent consideration in connection with business acquisitions (1) (2) - (1) (2) Change in fair value of contingent consideration in connection with changes in ownership in consolidated subsidiaries (2) - - (34) 3 Balance, end of period $ 58 $ 106 $ 58 $ 106 Amounts are recorded in selling, general and administrative in the condensed consolidated statements of income. (2) Amounts are recorded in additional paid-in capital in the condensed consolidated balance sheets. The following table presents our assets and liabilities that are measured and basis classified under the appropriate level of the fair value hierarchy as of June 27, 2026 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 2 $ - $ 2 Derivative contracts undesignated - 2 - 2 Total assets $ - $ 4 $ - $ 4 Liabilities: Derivative contracts designated as hedges $ - $ 10 $ - $ 10 Derivative contracts undesignated - 2 - 2 Total return - 1 - 1 Contingent consideration - - 58 58 Total liabilities $ - $ 13 $ 58 $ 71 Redeemable noncontrolling interests $ - $ - $ 906 $ 906 December 27, 2025 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 1 - 1 Total return - 1 - 1 Total assets $ - $ 3 $ - $ 3 Liabilities: Derivative contracts designated as hedges $ - $ 23 $ - $ 23 Derivative contracts undesignated - 2 - 2 Contingent consideration - - 97 97 Total liabilities $ - $ 25 $ 97 $ 122 Redeemable noncontrolling interests $ - $ - $ 895 $ 895 |