v3.26.1
Fair Value Measurements and Fair Value of Financial Instruments
 6 Months Ended
Jul. 04, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements and Fair Value of Financial Instruments
Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:
•Level 1—Quoted prices in active markets for identical assets or liabilities.
•Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
•Level 3—Unobservable inputs based on the Company's own assumptions.
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis:
Fair Value as of July 4, 2026
(In thousands)Level 1Level 2Level 3Total
Assets:
Money market funds and time deposits (a)$20,740 $— $— $20,740 
Banker's acceptance drafts (b)$— $6,347 $— $6,347 
Liabilities:
Contingent consideration (c)
$— $— $2,012 $2,012 

Fair Value as of January 3, 2026
(In thousands)Level 1Level 2Level 3Total
Assets:
Money market funds and time deposits (a)$14,139 $— $— $14,139 
Banker's acceptance drafts (b)$— $9,115 $— $9,115 
Liabilities:
Contingent consideration (c)
$— $— $1,941 $1,941 
(a)Included in cash and cash equivalents in the accompanying condensed consolidated balance sheet.
(b)Included in accounts receivable in the accompanying condensed consolidated balance sheet.
(c)Included in other long-term liabilities in the accompanying condensed consolidated balance sheet.
The Company uses the market approach technique to value its Level 1 and Level 2 financial assets and liabilities, and there were no changes in valuation techniques during the first six months of 2026. Banker's acceptance drafts are carried at face value, which approximates their fair value due to the short-term nature of the negotiable instrument.
The Company uses the income approach technique to estimate the fair value of its Level 3 contingent consideration, including valuation models that incorporate probability adjusted assumptions and simulations related to the achievement of milestones and the likelihood of making the related payment. The unobservable inputs used in the fair value measurements
include the probability of successful achievement of certain revenue targets, forecasted revenue, revenue volatility, and discount rates. These assumptions were estimated based on a review of historical and projected results. Projected contingent consideration related to revenue-based payments is discounted back to the current period using a discounted cash flow model. Changes to the fair value of contingent consideration can result from changes to one or multiple inputs, including the discount rate, projected revenue, revenue volatility, and the assumed probabilities of successful achievement of certain revenue targets. There were no changes in the valuation techniques or significant unobservable inputs used in measuring the contingent consideration during the first six months of 2026.
The following table provides a rollforward of the change in the fair value of the contingent consideration as determined by Level 3 inputs:
Six Months Ended
(In thousands)
July 4,
2026		June 28,
2025
Balance at Beginning of Year
$1,941 $1,678 
Currency translation
71 88 
Balance at End of Period
$2,012 $1,766 
The carrying value and fair value of debt obligations, excluding lease obligations, are as follows:
July 4, 2026January 3, 2026
(In thousands)Carrying ValueFair ValueCarrying ValueFair Value
Debt Obligations:
Revolving credit facility$502,452 $502,452 $366,707 $366,707 
Senior promissory notes4,990 4,997 4,990 4,981 
Other797 797 1,023 1,023 
$508,239 
 
$508,246 $372,720 $372,711 
The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust frequently, based on prevailing market rates. The fair value of the revolving credit facility is based on observable market interest rates and credit spreads available for similar instruments, which represent Level 2 measurements. The fair value of the senior promissory notes is primarily calculated based on quoted market rates plus an applicable margin available to the Company at the respective period end, which represent Level 2 measurements.