v3.26.1
Fair Value Measurements and Disclosures
 6 Months Ended
Jul. 04, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Disclosures
(9)
Fair Value Measurements and Disclosures

ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows:

•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, and other observable inputs.
•
Level 3 — Unobservable inputs supported by little or no market activity that are significant to the fair value measurement.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at December 31, 2025 (in thousands):

 

 

December 31,
2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair Value Measurement

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

4

 

 

$

—

 

 

$

—

 

 

$

4

 

Marketable securities

 

 

10,351

 

 

 

—

 

 

 

—

 

 

 

10,351

 

Interest rate swap

 

 

—

 

 

 

341

 

 

 

—

 

 

 

341

 

Total

 

$

10,355

 

 

$

341

 

 

$

—

 

 

$

10,696

 

There were no similar financial assets held by the Company and measured at fair value on a recurring basis at July 4, 2026.

The valuation techniques used to measure fair value for the items in the tables above are as follows:

•
Cash equivalents – This category consists primarily of money market funds and is measured at fair value based on quoted prices for identical instruments in active markets.
•
Marketable securities – Marketable securities consisted of common and preferred equity securities actively traded on public exchanges and were measured based on quoted prices in active markets. During the first quarter of 2026, the Company sold its remaining marketable securities portfolio.
•
Interest rate swap – The fair value of the interest rate swap was determined using discounted cash flow methodologies based on observable market inputs, including forward interest rate curves and credit valuation adjustments for both the Company and the counterparty.

The carrying amount of our receivables, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities approximate fair value due to their short maturities.

(9)
Fair Value Measurements and Disclosures – continued

The Company’s Revolving Credit Facility and one equipment note bear interest at variable rates and are categorized as Level 2 liabilities. The carrying value of these borrowings approximates fair value because the applicable interest rates are adjusted frequently based on short-term market rates.

The fair values of the Company’s fixed-rate equipment promissory notes and CTL financing are estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements and are categorized as Level 2 liabilities.

The carrying value and estimated fair value of these promissory notes at July 4, 2026 and December 31, 2025 are summarized as follows:

 

 

July 4,
2026

 

 

December 31,
2025

 

 

 

Carrying
Value

 

 

Estimated Fair
Value

 

 

Carrying
Value

 

 

Estimated Fair
Value

 

Equipment promissory notes

 

$

236,738

 

 

$

235,326

 

 

$

272,726

 

 

$

274,363

 

CTL promissory note

 

$

185,312

 

 

$

182,228

 

 

$

193,324

 

 

$

193,792

 

 

The Company has not elected the fair value option for any of its financial instruments.