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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
 6 Months Ended
Jul. 03, 2026
Fair Value Disclosures [Abstract]  
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). For the Company, these financial assets and liabilities include its derivative instruments and contingent consideration. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis.
The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates, and may use derivatives to manage these exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes. All derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets.
The following tables provide information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands):
Fair ValueQuoted
Prices in
Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
July 3, 2026
Assets: Foreign currency hedging contracts$2,577 $— $2,577 $— 
Liabilities: Foreign currency hedging contracts1,452 — 1,452 — 
Liabilities: Contingent consideration7,000 — — 7,000 
December 31, 2025
Liabilities: Foreign currency hedging contracts$5,221 $— $5,221 $— 
Liabilities: Contingent consideration8,179 — — 8,179 
Derivatives Designated as Hedging Instruments
Foreign Currency Contracts
The Company periodically enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate fluctuations in its international operations. The Company has designated these foreign currency forward contracts as cash flow hedges.
Information regarding outstanding foreign currency forward contracts as of July 3, 2026 is as follows (dollars in thousands):
Notional AmountMaturity Date$/Foreign CurrencyFair ValueBalance Sheet Location
$31,383 Jul 20270.0522MXN Peso$2,533 Prepaid expenses and other current assets
2,474 Jul 20270.2443MYR Ringgit20 Prepaid expenses and other current assets
4,201 Jul 20270.0247UYU Peso24 Prepaid expenses and other current assets
40,679 Jul 20271.1794Euro(957)Accrued expenses and other current liabilities
19,589 Jul 20270.0567MXN Peso(129)Accrued expenses and other current liabilities
2,555 Apr 20270.2591MYR Ringgit(126)Accrued expenses and other current liabilities
8,695 Apr 20270.0255UYU Peso(209)Accrued expenses and other current liabilities
3,752 Oct 20270.0558MXN Peso(31)Other long-term liabilities
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
Information regarding outstanding foreign currency forward contracts as of December 31, 2025 is as follows (dollars in thousands):
Notional AmountMaturity Date$/Foreign CurrencyFair ValueBalance Sheet Location
$15,906 Oct 20261.1610Euro$266 Prepaid expenses and other current assets
7,649 Oct 20260.0244UYU Peso383 Prepaid expenses and other current assets
51,699 Dec 20260.0501MXN Peso4,491 Prepaid expenses and other current assets
2,959 Oct 20260.2401MYR Ringgit82 Prepaid expenses and other current assets
3,842 Apr 20270.0519MXN Peso76 Other long-term assets
8,923 Jul 20261.1898Euro(77)Accrued expenses and other current liabilities
The following tables present the effect of cash flow hedge derivative instruments on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended July 3, 2026 and June 27, 2025 (in thousands):
Three Months Ended
July 3, 2026June 27, 2025
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$464,110 $(181)$476,494 $725 
Cost of sales351,168 1,878 347,342 277 
Operating expenses78,414 — 69,814 (1)
Six Months Ended
July 3, 2026June 27, 2025
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$903,690 $(1,356)$913,886 $142 
Cost of sales681,153 2,420 664,416 (416)
Operating expenses156,140 (92)140,580 (18)
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
Unrealized Gain (Loss) Recognized in OCIRealized Gain (Loss) Reclassified from AOCI
Three Months Ended
Location in Statements of Operations and Comprehensive
 Income
Three Months Ended
July 3,
2026		June 27,
2025		July 3,
2026		June 27,
2025
Foreign exchange contracts$(220)$2,938 Sales$(181)$725 
Foreign exchange contracts2,353 5,214 Cost of sales1,878 277 
Foreign exchange contracts— 126 Operating expenses— (1)
Six Months EndedSix Months Ended
July 3,
2026		June 27,
2025		July 3,
2026		June 27,
2025
Foreign exchange contracts$(104)$4,746 Sales$(1,356)$142 
Foreign exchange contracts5,172 7,633 Cost of sales2,420 (416)
Foreign exchange contracts— 299 Operating expenses(92)(18)
The Company expects to reclassify net gains totaling $1.2 million related to its cash flow hedges from AOCI into earnings during the next twelve months.
Derivatives Not Designated as Hedging Instruments
The Company also has foreign currency exposure on balances, primarily intercompany, that are denominated in a foreign currency and are adjusted to current values using period-end exchange rates. To minimize foreign currency exposure, the Company enters into foreign currency contracts with a one month maturity. At July 3, 2026 and December 31, 2025, the Company had total notional amounts of $66.5 million and $73.4 million, respectively, of foreign currency contracts outstanding that were not designated as hedges. The fair value of derivatives not designated as hedges was not material for any period presented. Gains/losses on foreign currency contracts not designated as hedging instruments are included in Other loss, net on the Condensed Consolidated Statements of Operations and Comprehensive Income. The Company recorded net losses of $0.4 million for the three and six months ended July 3, 2026, compared to net losses of $2.6 million and $2.2 million, respectively, for the three and six months ended June 27, 2025.
Contingent Consideration
The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three and six months ended July 3, 2026 and June 27, 2025 (in thousands):
Three Months EndedSix Months Ended
July 3,
2026		June 27,
2025		July 3,
2026		June 27,
2025
Fair value measurement at beginning of period$8,179 $3,445 $8,179 $904 
Amount recorded for current year acquisitions
— — — 2,541 
Fair value measurement adjustment(1,179)(309)(1,179)(309)
Fair value measurement at end of period$7,000 $3,136 $7,000 $3,136 
As of July 3, 2026, the contingent consideration liability was classified as current. As of December 31, 2025, the current and non-current portions of the contingent consideration liability were $7.0 million and $1.2 million, respectively. Any current portion of contingent consideration is included in Accrued expenses and other current liabilities and any non-current portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets.
The Company will make earnout payments in 2026 of up to $7.0 million based on the achievement of specified milestones being met in 2026. The significant unobservable inputs used to calculate the fair value of the contingent consideration for all acquisitions other than Biocoat are projected revenue for the remaining earnout periods. The payment related to the Biocoat acquisition is contingent upon specified operational milestones being met after close.
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
During the three months ended July 3, 2026, the Company assessed the probability of meeting the required revenue thresholds for the VSi acquisition as unlikely and recorded a fair value measurement adjustment totaling $1.2 million in Restructuring and other charges in the Condensed Consolidated Statements of Operations and Comprehensive Income. Actual results will differ from the projected results and could have a significant impact on the estimated fair value of the contingent considerations.
The following table provides information on unpaid contingent consideration as of July 3, 2026 (in thousands):
As of July 3, 2026
Maximum Remaining Payout (undiscounted)
AcquisitionAcquisition DateRemainingMilestone Years2026202720282029TotalFair Value
Biocoat
12/04/252026$7,000 $— $— $— $7,000 $7,000 
VSi02/28/252026 - 2028— 1,000 1,000 1,000 3,000 — 
InNeuroCo10/01/232026 - 2027— 2,700 2,700 — 5,400 — 
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. Borrowings under the Company’s Revolving Credit Facility and TLA Facility accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. The carrying amount of this floating rate debt approximates fair value based upon the respective interest rates adjusting with market rate adjustments.
Equity and Other Investments
The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other long-term assets on the Condensed Consolidated Balance Sheets.
Equity and other investments comprise the following (in thousands):
July 3,
2026		December 31,
2025
Equity method investment$6,239 $7,709 
Non-marketable equity securities180 180 
Convertible debt instrument13,722 — 
Total equity and other investments
$20,141 $7,889 
During the first quarter of 2026, the Company invested 12 million euro ($13.8 million) in a convertible debt instrument issued by a life sciences company that matures on December 31, 2035. The instrument has a stated interest of 4.55%, payable periodically during the term of the instrument. Depending on certain operational and financial targets, the Company may invest an additional 3 million euro under the same terms. The instrument is senior to all other indebtedness, and is secured by the assets of the investee. The Company considered guidance within ASC 815 and concluded the conversion option did not require bifurcation as an embedded derivative instrument.
The components of (Gain) loss on equity investments for each period were as follows (in thousands):
Three Months EndedSix Months Ended
July 3,
2026		June 27,
2025		July 3,
2026		June 27,
2025
Equity method investment (gain) loss$(42)$8 $1,426 $(173)
The Company’s equity method investment is in a venture capital fund focused on investing in life sciences companies. As of July 3, 2026 and December 31, 2025, the Company owned 8.0% of this fund.