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Fair Value Measurement | 9 Months Ended
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Sep. 28, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements FASB authoritative guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The following table presents the Company’s financial instruments that are measured at fair value on a recurring and nonrecurring basis as of September 28, 2024 and are categorized using the fair value hierarchy under FASB authoritative guidance. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value.
|  | Fair Value Measurements at September 28, 2024 Using
|  | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs
(In thousands of dollars) | Total | (Level 1) | (Level 2) | (Level 3)
Assets |  |  |  |
Derivative assets | $ | 8,000 |  | $ | — |  | $ | 8,000 |  | $ | — |
Total Assets | $ | 8,000 |  | $ | — |  | $ | 8,000 |  | $ | — |
Liabilities |  |  |  |
Derivative liabilities | $ | 35,421 |  | $ | — |  | $ | 35,421 |  | $ | — |
Contingent consideration | 37,851 |  | — |  | — |  | 37,851 |
Total Liabilities | $ | 73,272 |  | $ | — |  | $ | 35,421 |  | $ | 37,851 |
|  | Fair Value Measurements at December 30, 2023 Using
|  | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs
(In thousands of dollars) | Total | (Level 1) | (Level 2) | (Level 3)
Assets |  |  |  |
Derivative assets | $ | 29,000 |  | $ | — |  | $ | 29,000 |  | $ | — |
Total Assets | $ | 29,000 |  | $ | — |  | $ | 29,000 |  | $ | — |
Liabilities |  |  |  |
Derivative liabilities | $ | 19,997 |  | $ | — |  | $ | 19,997 |  | $ | — |
Contingent consideration | 86,495 |  | — |  | — |  | 86,495 |
Total Liabilities | $ | 106,492 |  | $ | — |  | $ | 19,997 |  | $ | 86,495 |
Derivative assets and liabilities consist of the Company’s corn option and future contracts, foreign currency forward and option contracts, interest rate swap contracts and cross currency swap contracts which represent the difference between observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instruments term, notional amount and credit risk. See Note 15 (Derivatives) to the Company’s Consolidated Financial Statements included herein for discussion on the Company’s derivatives. The fair value measurement of contingent consideration liability uses significant unobservable inputs (level 3). We estimated the fair value of the FASA contingent consideration using a Monte Carlo simulation methodology from a third-party that includes simulating the forecasted net income or earnings plus interest expense, taxes, depreciation and amortization (“EBITDA”) using a Geometric Brownian Motion in a risk-neutral framework. The assumptions used in the FASA contingent consideration analysis as of September 28, 2024 included the EBITDA forecast through the remaining term of the contingent consideration, an EBITDA discount rate, an EBITDA volatility, credit spread, risk-free rate and exchange rate. Significant increases and decreases in these inputs could result in a significantly lower or higher fair value measurement of the FASA contingent consideration. The changes in contingent consideration are due to the following:
(in thousands of dollars) | Contingent Consideration
Balance as of December 30, 2023 | $ | 86,495 |
Total included in earnings during period | (42,215) |
Exchange rate changes | (6,429) |
Balance as of September 28, 2024 | $ | 37,851 |
Fair value of financial instruments that are not carried at fair value are as follows:
|  | Fair Value Measurements at September 28, 2024 Using
|  | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs
(In thousands of dollars) | Total | (Level 1) | (Level 2) | (Level 3)
Liabilities |  |  |  |
6% Senior notes | $ | 1,010,400 |  | $ | — |  | $ | 1,010,400 |  | $ | — |
5.25% Senior notes | 497,500 |  | — |  | 497,500 |  | — |
3.625% Senior notes | 571,247 |  | — |  | 571,247 |  | — |
Term loan A-1 | 396,010 |  | — |  | 396,010 |  | — |
Term loan A-2 | 472,625 |  | — |  | 472,625 |  | — |
Term loan A-3 | 297,008 |  | — |  | 297,008 |  | — |
Term loan A-4 | 481,953 |  | — |  | 481,953 |  | — |
Revolver debt | 413,883 |  | — |  | 413,883 |  | — |
Total Liabilities | $ | 4,140,626 |  | $ | — |  | $ | 4,140,626 |  | $ | — |
|  | Fair Value Measurements at December 30, 2023 Using
|  | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs
(In thousands of dollars) | Total | (Level 1) | (Level 2) | (Level 3)
Liabilities |  |  |  |
6% Senior notes | $ | 1,000,000 |  | $ | — |  | $ | 1,000,000 |  | $ | — |
5.25% Senior notes | 493,100 |  | — |  | 493,100 |  | — |
3.625% Senior notes | 560,994 |  | — |  | 560,994 |  | — |
Term loan A-1 | 398,000 |  | — |  | 398,000 |  | — |
Term loan A-2 | 478,844 |  | — |  | 478,844 |  | — |
Term loan A-3 | 298,500 |  | — |  | 298,500 |  | — |
Term loan A-4 | 488,172 |  | — |  | 488,172 |  | — |
Revolver debt | 604,766 |  | — |  | 604,766 |  | — |
Total Liabilities | $ | 4,322,376 |  | $ | — |  | $ | 4,322,376 |  | $ | — |
The fair value of the senior notes, term loan A-1, term loan A-2, term loan A-3, term loan A-4 and revolver debt is based on market quotation from third-party banks. The carrying amount of the Company’s other debt is not deemed to be significantly different from the fair value and all other instruments have been recorded at fair value. The carrying amount of cash, cash equivalents and restricted cash, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments and as such has been excluded from the table above.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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