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Fair Value
 9 Months Ended
Dec. 28, 2024
Fair Value [Abstract]  
Fair Value

6. Fair Value

 

Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy:

 

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

 

Level 2 – Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.

 

Level 3 – Unobservable inputs for the asset or liability.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

As a result of the occurrence of triggering events such as purchase accounting for acquisitions, the Company measures certain assets and liabilities based on Level 3 inputs.

 

Financial Instruments

 

The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, trade accounts payable, accrued expenses, short-term borrowings, long-term debt, and derivatives in the form of an interest rate swap and a cross currency swap. Refer to Note 13 for further details on our derivative instruments.

 

Due to their short-term nature, the carrying value of cash and cash equivalents, accounts receivable, trade accounts payable, accrued expenses and short-term borrowings are a reasonable estimate of their fair value. Long-term assets held on our balance sheets related to benefit plan obligations are measured at fair value.

 

The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $466.3 and $456.8 at December 28, 2024 and March 30, 2024, respectively. The carrying value of this debt was $494.9 at December 28, 2024 and $494.2 at March 30, 2024. The fair value of long-term fixed-rate debt was measured using Level 1 inputs. Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company’s long-term variable-rate debt is a reasonable estimate of its fair value.

 

The fair value of the interest rate swap was $(0.4) at December 28, 2024, and was included in other noncurrent liabilities on the Company’s consolidated balance sheets. The fair value of the interest rate swap was $1.6 at March 30, 2024, and was included in other noncurrent assets on the Company’s consolidated balance sheets. The fair value of the interest rate swap is measured using Level 2 inputs.

 

The fair value of the cross currency swap was $0.4 at December 28, 2024, and was included in other noncurrent assets on the Company’s consolidated balance sheets. The fair value of the cross currency swap was measured using Level 2 inputs.

 

The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments.