FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 30, 2025

Accounting guidance on fair value measurements requires that financial assets and liabilities be classified and disclosed in one of the following categories of the fair value hierarchy:


Level 1 – Based on unadjusted quoted prices for identical assets or liabilities in an active market.
Level 2 – Based on observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3 – Based on unobservable inputs that reflect the entity’s own assumptions about the assumptions that a market participant would use in pricing the asset or liability.

We did not have any Level 3 financial assets or liabilities, nor were there any transfers between levels during the periods presented.

The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of March 30, 2025 and December 31, 2024:


	Assets / Liabilities
	Level 1		Level 2		Level 3		Total
March 30, 2025:
Derivative Instruments:
Assets:
Foreign exchange contracts (1)	$	—	$	5,225	$	—	$	5,225


Commodities futures and options (3)	$	242,791	$	—	$	—	$	242,791
Liabilities:
Foreign exchange contracts (1)	$	—	$	1,545	$	—	$	1,545

Deferred compensation derivatives (2)	—		1,886		—		1,886
Commodities futures and options (3)	$	8,424	$	—	$	—	$	8,424
December 31, 2024:
Assets:
Foreign exchange contracts (1)	$	—	$	8,761	$	—	$	8,761

Deferred compensation derivatives (2)	$	—	$	460	$	—	$	460
Commodities futures and options (3)	$	514,623	$	—	$	—	$	514,623
Liabilities:
Foreign exchange contracts (1)	$	—	$	8,080	$	—	$	8,080


Commodities futures and options (3)	$	14,321	$	—	$	—	$	14,321

(1)The fair value of foreign currency forward exchange contracts is the difference between the contract and current market foreign currency exchange rates at the end of the period. We estimate the fair value of foreign currency forward exchange contracts on a quarterly basis by obtaining market quotes of spot and forward rates for contracts with similar terms, adjusted where necessary for maturity differences.

(2)The fair value of deferred compensation derivatives is based on quoted prices for market interest rates and a broad market equity index.

(3)The fair value of commodities futures and options contracts is based on quoted market prices.

Other Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximated fair values as of March 30, 2025 and December 31, 2024 because of the relatively short maturity of these instruments.

The estimated fair value of our long-term debt is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 within the valuation hierarchy. The fair values and carrying values of long-term debt, including the current portion, were as follows:


	Fair Value				Carrying Value
	March 30, 2025		December 31, 2024		March 30, 2025		December 31, 2024
Current portion of long-term debt	$	600,324	$	597,547	$	603,617	$	604,965
Long-term debt	4,778,927		2,734,322		5,177,251		3,190,210
Total	$	5,379,251	$	3,331,869	$	5,780,868	$	3,795,175

Other Fair Value Measurements

In addition to assets and liabilities that are recorded at fair value on a recurring basis, GAAP requires that, under certain circumstances, we also record assets and liabilities at fair value on a nonrecurring basis.

2024 Activity

In connection with the acquisition of Sour Strips in 2024, as discussed in Note 2, we used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow analysis and the relief-from-royalty, a form of the multi-period excess earnings, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Additionally, we estimated the fair value of the contingent consideration using a Monte Carlo simulation model.