XML 26 R15.htm IDEA: XBRL DOCUMENT v3.25.3
FAIR VALUE
 9 Months Ended
Sep. 27, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Assets and liabilities measured at fair value on a recurring basis are summarized below:
 September 27, 2025
Level 1Level 2Level 3Total

(in thousands)
Other assets measured at fair value:
Life insurance policies$— $54,760 $— $54,760 
Total assets measured at fair value$— $54,760 $— $54,760 
Accrued liabilities measured at fair value:
Contingent consideration$— $— $28,065 $28,065 
Total liabilities measured at fair value$— $— $28,065 $28,065 
The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the nine months ended September 27, 2025, there were no transfers between levels.
 December 28, 2024
Level 1Level 2Level 3Total
Current assets measured at fair value:(in thousands)
Cash equivalents$— $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 
During the year ended December 28, 2024, there were no transfers between levels.
Contingent Consideration
The following table provides a rollforward of the contingent consideration related to the Company’s acquisitions.
Nine Months Ended
September 27, 2025September 28, 2024
(in thousands)
Beginning balance$49,311 $33,265 
Payments(25,000)— 
Adjustment of previously recorded contingent liability3,754 6,628 
Ending balance$28,065 $39,893 
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 $30.0 million, of which the value accrued as of September 27, 2025 is $28.1 million as the probability of achieving the maximum target is estimated to be 94%. The volatility and weighted average cost of capital is approximately 20% and 8%, respectively. Increases or decreases in these assumptions may result in a higher or lower fair value measurement, respectively.
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, excluding issuance costs, and fair value of the Company’s Senior Notes is summarized below:
September 27, 2025December 28, 2024
Book ValueFair ValueBook ValueFair Value
(in thousands)
4.25% Senior Notes due 2028
$500,000 $487,550 $500,000 $473,750 
3.75% Senior Notes due 2029
500,000 472,500 500,000 456,250 
4.00% Senior Notes due 2031
500,000 463,600 500,000 441,250