Cross-currency Swap |
9 Months Ended |
|---|---|
Sep. 28, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Cross-currency Swap | (12) Cross-currency Swap On June 18, 2026, in connection with the acquisition of STG, the Company entered into a deal-contingent, forward-starting, fixed-for-fixed USD/CHF cross-currency swap with a major financial institution. The swap was entered to economically mitigate the foreign currency risk of the CHF-denominated purchase price and convert a portion of the anticipated USD financing into fixed-rate CHF financing. The instrument was contingent upon the closing of the STG acquisition. The swap has notional exchanges of $381,083 and CHF 306,200, provides for the Company to receive 6.0% fixed USD interest and pay 3.025% fixed CHF interest, has an effective date of September 16, 2026, and matures on September 16, 2033. The instrument did not qualify for hedge accounting from inception until the close of the STG acquisition on September 16, 2026. Changes in the fair value of the cross-currency swap before hedge designation and an acquisition-related short-term currency forward resulted in realized and unrealized losses on derivative instruments of $6,103 and $20,097 in the consolidated condensed statements of operations during the quarter and three quarters ended September 28, 2026, respectively. Upon the close of the STG acquisition on September 16, 2026, the cross-currency swap was designated as a net investment hedge of the Company’s net investment in STG. Hedge effectiveness is assessed using the spot method, with the spot-forward rate differential excluded from the assessment of hedge effectiveness. The initial value of the excluded component is recognized using a systematic and rational method over the life of the hedging instrument as an adjustment to interest expense on the consolidated condensed statements of operations. Spot-related changes in fair value and changes in fair value of the excluded component, net of its amortization recognized in earnings, are reported in the foreign currency translation component of other comprehensive (loss) income and accumulated other comprehensive loss. As of September 28, 2026, the fair value of the cross-currency swap was a net liability of $10,140, of which $10,969 is included as a component of prepaid expenses and other current assets and $21,109 is included as a component of other long-term liabilities. For the quarter and three quarters ended September 28, 2026, the Company recognized a change in fair value net gain of $2,179 in the foreign currency translation component of other comprehensive (loss) income of the swap designated as a net investment hedge and recognized a benefit of $391 as a reduction of interest expense in the consolidated condensed statements of operations. |