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FAIR VALUE
 6 Months Ended
Jun. 29, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Assets and liabilities measured at fair value on a recurring basis are summarized below:
 June 29, 2024
Level 1Level 2Level 3Total
Current assets measured at fair value:(in thousands)
Cash equivalents$— $7,257 $— $7,257 
Term deposit
— 26,983 — 26,983 
Other assets:
Life insurance policies— 45,210 — 45,210 
Interest rate swap— 1,338 — 1,338 
Total assets measured at fair value$— $80,788 $— $80,788 
Other long-term liabilities measured at fair value:
Contingent consideration$— $— $38,335 $38,335 
Total liabilities measured at fair value$— $— $38,335 $38,335 
The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the six months ended June 29, 2024, there were no transfers between levels.
 December 30, 2023
Level 1Level 2Level 3Total
Current assets measured at fair value:(in thousands)
Cash equivalents$— $29 $— $29 
Other assets:
Life insurance policies— 40,912 — 40,912 
Interest rate swap— 966 — 966 
Total assets measured at fair value$— $41,907 $— $41,907 
Other long-term liabilities measured at fair value
Contingent consideration$— $— $33,265 $33,265 
Total liabilities measured at fair value$— $— $33,265 $33,265 
During the year ended December 30, 2023, there were no transfers between levels.
Contingent Consideration
The following table provides a rollforward of the contingent consideration related to the Company’s acquisitions.
Six Months Ended
June 29, 2024July 1, 2023
(in thousands)
Beginning balance$33,265 $13,431 
Payments— (15,130)
Total gains or losses (realized/unrealized):
Adjustment of previously recorded contingent liability5,070 1,810 
Foreign currency translation— (111)
Ending balance$38,335 $— 
The Company estimates the fair value of contingent consideration obligations through valuation models, such as probability-weighted and option pricing models, which incorporate probability adjusted assumptions and simulations related to the achievement of the milestones and the likelihood of making related payments. The unobservable inputs used in the fair value measurements include the probabilities of successful achievement of certain financial targets, forecasted results or targets, volatility, and discount rates. The remaining maximum potential payments are approximately $55 million, of which the value accrued as of June 29, 2024 is $38 million as the probability of achieving the maximum target is estimated to be 70%. The volatility and weighted average cost of capital is approximately 5% and 8%, respectively. Increases or decreases in these assumptions may result in a higher or lower fair value measurement, respectively.
Cash Flow Hedge
The Company is exposed to market fluctuations in interest rates as well as variability in foreign exchange rates. The Company has an interest rate swap with a notional amount of $500 million maturing November 2, 2024 to manage interest rate fluctuation related to floating rate borrowings under the Credit Facility, at a fixed rate of 4.65%.
Debt Instruments
The book value of the Company’s revolving loans, which are variable rate loans carried at amortized cost, approximates the fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2 within the fair value hierarchy.
The book value of the Company’s Senior Notes are fixed rate obligations carried at amortized cost. Fair value is based on quoted market prices as well as borrowing rates available to the Company. As the fair value is based on significant other
observable outputs, it is deemed to be Level 2 within the fair value hierarchy. The book value and fair value of the Company’s Senior Notes is summarized below:
June 29, 2024December 30, 2023
Book ValueFair ValueBook ValueFair Value
(in thousands)
4.25% Senior Notes due 2028
$500,000 $468,750 $500,000 $478,100 
3.75% Senior Notes due 2029
500,000 453,750 500,000 458,100 
4.00% Senior Notes due 2031
500,000 445,000 500,000 449,350