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FAIR VALUE
 12 Months Ended
Dec. 28, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Assets and liabilities measured at fair value on a recurring basis are summarized below:
 December 28, 2024
 Level 1Level 2Level 3Total
Current assets measured at fair value:(in thousands)
Cash equivalents$— $30 $— $30 
Other assets:
Life insurance policies— 48,152 — 48,152 
Total assets measured at fair value$— $48,182 $— $48,182 
Accrued liabilities measured at fair value:
Contingent consideration$— $— $25,000 $25,000 
Other long-term liabilities measured at fair value:
Contingent consideration— — 24,311 24,311 
Total liabilities measured at fair value$— $— $49,311 $49,311 
 December 30, 2023
 Level 1Level 2Level 3Total
Current assets measured at fair value:(in thousands)
Cash equivalents$— $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 fiscal years 2024 and 2023, there were no transfers between fair value levels.
Contingent Consideration
The following table provides a rollforward of the contingent consideration related to the Company’s acquisitions.
Fiscal Year
202420232022
(in thousands)
Beginning balance$33,265 $13,431 $37,244 
Additions— 33,265 3,838 
Payments— (15,130)(11,476)
Total gains or losses (realized/unrealized):
Adjustment of previously recorded contingent liability16,046 1,810 (15,340)
Foreign currency translation— (111)(835)
Ending balance$49,311 $33,265 $13,431 
The Company estimates the fair value of contingent consideration obligations through valuation models, such as probability-weighted and option pricing models, that 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 December 28, 2024 is approximately $49 million. As of December 28, 2024 the weighted average probability of
achieving the maximum target is approximately 90%. The average volatility and weighted average cost of capital is approximately 20% and 8%, respectively.
Cash Flow Hedge
The Company is exposed to market fluctuations in interest rates as well as variability in foreign exchange rates. The Company had an interest rate swap with a notional amount of $500 million that matured November 2, 2024 and was utilized to manage interest rate fluctuation related to floating rate borrowings under the revolving credit facility, at a fixed rate of 4.65%.
Debt Instruments
The book value of the Company’s revolving loans are variable rate loans carried at amortized cost which approximates the fair value. 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:
December 28, 2024December 30, 2023
Book ValueFair ValueBook ValueFair Value
(in thousands)
4.25% Senior Notes due 2028
$500,000 $473,750 $500,000 $478,100 
3.75% Senior Notes due 2029
500,000 456,250 500,000 458,100 
4.00% Senior Notes due 2031
500,000 441,250 500,000 449,350