Fair Value Measurements

9 Months Ended

Sep. 27, 2024

The carrying values of financial instruments, including Trade receivables and Accounts payable, approximate their fair values due to their short-term maturities. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future.

A summary of the Company’s assets and liabilities that are measured at fair value for each fair value hierarchy level for the periods presented is as follows:


	September 27, 2024
	Level One		Level Two		Level Three		Total
	(In thousands)
Assets:
Cash equivalents	$	5,999	$	—	$	—	$	5,999
Foreign currency contracts	—		1,188		—		1,188
Interest rate swap agreement	—		1,520		—		1,520
Deferred compensation plans	—		4,994		—		4,994
	$	5,999	$	7,702	$	—	$	13,701

Liabilities:
Foreign currency contracts	$	—	$	1,287	$	—	$	1,287
Cross-currency swap agreements	—		26,647		—		26,647
Deferred compensation plans	—		4,994		—		4,994
	$	—	$	32,928	$	—	$	32,928


	December 31, 2023
	Level One		Level Two		Level Three		Total
	(In thousands)
Assets:
Cash equivalents	$	6,027	$	—	$	—	$	6,027
Foreign currency contracts	—		2,261		—		2,261
Interest rate swap agreements	—		9,522		—		9,522
Deferred compensation plans	—		3,488		—		3,488
	$	6,027	$	15,271	$	—	$	21,298

Liabilities:
Foreign currency contracts	$	—	$	1,769	$	—	$	1,769
Cross-currency swap agreements	—		22,232		—		22,232
Deferred compensation plans	—		3,488		—		3,488
	$	—	$	27,489	$	—	$	27,489

The Company measures the fair value of foreign currency contracts, cross-currency swap agreements and interest rate swap agreement(s) using Level Two inputs based on observable spot and forward rates in active markets. Additionally, the fair value of derivatives designated in hedging relationships includes a credit valuation adjustment to appropriately incorporate nonperformance risk for the Company and the respective counterparty. For the nine months ended September 27, 2024, the impact of the credit valuation adjustment on the Company’s derivatives is immaterial. Refer to Note 11, “Derivatives” for additional information.

There were no transfers in or out of Level One, Two or Three during the nine months ended September 27, 2024.