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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended
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Apr. 03, 2026
Fair Value Disclosures [Abstract] |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). For the Company, these financial assets and liabilities include its derivative instruments and contingent consideration. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis. The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates, and may use derivatives to manage these exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes. All derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets. The following tables provide information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands):
| Fair Value |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
April 3, 2026 |  |  |  |  |  |  |
Assets: Foreign currency hedging contracts | $ | 3,480 |  |  | $ | — |  |  | $ | 3,480 |  |  | $ | — |
Liabilities: Foreign currency hedging contracts | 1,919 |  |  | — |  |  | 1,919 |  |  | — |
Liabilities: Contingent consideration | 8,179 |  |  | — |  |  | — |  |  | 8,179 |
December 31, 2025 |  |  |  |  |  |  |
Liabilities: Foreign currency hedging contracts | $ | 5,221 |  |  | $ | — |  |  | $ | 5,221 |  |  | $ | — |
Liabilities: Contingent consideration | 8,179 |  |  | — |  |  | — |  |  | 8,179 |
(13.) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued) Derivatives Designated as Hedging Instruments Foreign Currency Contracts The Company periodically enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate fluctuations in its international operations. The Company has designated these foreign currency forward contracts as cash flow hedges. Information regarding outstanding foreign currency forward contracts as of April 3, 2026 is as follows (dollars in thousands):
Notional Amount |  | Maturity Date |  | $/Foreign Currency |  | Fair Value |  | Balance Sheet Location
$ | 38,320 |  |  | Apr 2027 |  | 0.0507 |  | MXN Peso |  | $ | 3,395 |  |  | Prepaid expenses and other current assets
1,543 |  |  | Oct 2026 |  | 0.2421 |  | MYR Ringgit |  | 42 |  |  | Prepaid expenses and other current assets
1,967 |  |  | Oct 2026 |  | 0.0242 |  | UYU Peso |  | 43 |  |  | Prepaid expenses and other current assets
50,362 |  |  | Dec 2026 |  | 1.1826 |  | Euro |  | (1,012) |  |  | Accrued expenses and other current liabilities
11,215 |  |  | Apr 2027 |  | 0.0564 |  | MXN Peso |  | (325) |  |  | Accrued expenses and other current liabilities
3,680 |  |  | Apr 2027 |  | 0.2588 |  | MYR Ringgit |  | (132) |  |  | Accrued expenses and other current liabilities
11,043 |  |  | Apr 2027 |  | 0.0256 |  | UYU Peso |  | (367) |  |  | Accrued expenses and other current liabilities
3,969 |  |  | Jul 2027 |  | 0.0550 |  | MXN Peso |  | (83) |  |  | Other long-term liabilities
Information regarding outstanding foreign currency forward contracts as of December 31, 2025 is as follows (dollars in thousands):
Notional Amount |  | Maturity Date |  | $/Foreign Currency |  | Fair Value |  | Balance Sheet Location
$ | 15,906 |  |  | Oct 2026 |  | 1.1610 |  | Euro |  | $ | 266 |  |  | Prepaid expenses and other current assets
7,649 |  |  | Oct 2026 |  | 0.0244 |  | UYU Peso |  | 383 |  |  | Prepaid expenses and other current assets
51,699 |  |  | Dec 2026 |  | 0.0501 |  | MXN Peso |  | 4,491 |  |  | Prepaid expenses and other current assets
2,959 |  |  | Oct 2026 |  | 0.2401 |  | MYR Ringgit |  | 82 |  |  | Prepaid expenses and other current assets
3,842 |  |  | Apr 2027 |  | 0.0519 |  | MXN Peso |  | 76 |  |  | Other long-term assets
8,923 |  |  | Jul 2026 |  | 1.1898 |  | Euro |  | (77) |  |  | Accrued expenses and other current liabilities
The following tables present the effect of cash flow hedge derivative instruments on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the three and three months ended April 3, 2026 and March 28, 2025 (in thousands):
|  | Three Months Ended
|  | April 3, 2026 |  | March 28, 2025
|  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity |  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity
Sales |  | $ | 439,580 |  |  | $ | (116) |  |  | $ | 437,392 |  |  | $ | (583) |
Cost of sales |  | 329,985 |  |  | (2,819) |  |  | 317,074 |  |  | (693) |
Operating expenses |  | 77,726 |  |  | — |  |  | 70,766 |  |  | (17) |
(13.) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
|  | Unrealized Gain (Loss) Recognized in OCI |  | Realized Gain (Loss) Reclassified from AOCI
|  | Three Months Ended |  | Location in Statements of Operations and Comprehensive Income |  | Three Months Ended
|  | April 3, 2026 |  | March 28, 2025 |  |  | April 3, 2026 |  | March 28, 2025
Foreign exchange contracts |  | $ | (1,407) |  |  | $ | 1,808 |  |  | Sales |  | $ | (116) |  |  | $ | (583) |
Foreign exchange contracts |  | (5,096) |  |  | 2,419 |  |  | Cost of sales |  | (2,819) |  |  | (693) |
Foreign exchange contracts |  | (92) |  |  | 349 |  |  | Operating expenses |  | — |  |  | (17) |
The Company expects to reclassify net gains totaling $1.6 million related to its cash flow hedges from AOCI into earnings during the next twelve months. Derivatives Not Designated as Hedging Instruments The Company also has foreign currency exposure on balances, primarily intercompany, that are denominated in a foreign currency and are adjusted to current values using period-end exchange rates. To minimize foreign currency exposure, the Company enters into foreign currency contracts with a one month maturity. At April 3, 2026 and December 31, 2025, the Company had total notional amounts of $79.5 million and $73.4 million, respectively, of foreign currency contracts outstanding that were not designated as hedges. The fair value of derivatives not designated as hedges was not material for any period presented. Gains/losses on foreign currency contracts not designated as hedging instruments are included in Other loss, net on the Condensed Consolidated Statements of Operations and Comprehensive Income. The Company recorded net gains of $0.1 million for the three months ended April 3, 2026, compared to net gains of $0.6 million for the three months ended March 28, 2025. Contingent Consideration The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three and three months ended April 3, 2026 and March 28, 2025 (in thousands):
| Three Months Ended |  |
| April 3, 2026 |  | March 28, 2025 |  |  |  |
Fair value measurement at beginning of period | $ | 8,179 |  |  | $ | 904 |  |  |  |  |
Amount recorded for current year acquisitions | — |  |  | 2,541 |  |  |  |  |
Fair value measurement at end of period | $ | 8,179 |  |  | $ | 3,445 |  |  |  |  |
As of April 3, 2026 and December 31, 2025, the current and non-current portions of the contingent consideration liability were $7.0 million and $1.2 million, respectively. Any current portion of contingent consideration is included in Accrued expenses and other current liabilities and any non-current portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets. The Company will make earnout payments in 2026 of up to $7.0 million based on the achievement of specified milestones being met in 2026. The significant unobservable inputs used to calculate the fair value of the contingent consideration for all acquisitions other than Biocoat are projected revenue for the remaining earnout periods. The payment related to the Biocoat acquisition is contingent upon specified operational milestones being met after close. Actual results will differ from the projected results and could have a significant impact on the estimated fair value of the contingent considerations. (13.) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued) The following table provides information on unpaid contingent consideration as of April 3, 2026 (in thousands):
|  |  |  |  |  | As of April 3, 2026
|  |  |  |  |  | Maximum Remaining Payout (undiscounted) |  |
Acquisition |  | Acquisition Date |  | RemainingMilestone Years |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Total |  | Fair Value
Biocoat |  | 12/04/25 |  | 2026 |  | $ | 7,000 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7,000 |  |  | $ | 7,000 |
VSi |  | 02/28/25 |  | 2026 - 2028 |  | — |  |  | 1,000 |  |  | 1,000 |  |  | 1,000 |  |  | 3,000 |  |  | 1,179 |
InNeuroCo |  | 10/01/23 |  | 2026 - 2027 |  | — |  |  | 2,700 |  |  | 2,700 |  |  | — |  |  | 5,400 |  |  | — |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. Borrowings under the Company’s Revolving Credit Facility and TLA Facility accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. The carrying amount of this floating rate debt approximates fair value based upon the respective interest rates adjusting with market rate adjustments. Equity and Other Investments The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other long-term assets on the Condensed Consolidated Balance Sheets. Equity and other investments comprise the following (in thousands):
|  |  |  |  | April 3, 2026 |  | December 31, 2025
Equity method investment |  |  |  |  | $ | 6,197 |  |  | $ | 7,709 |
Non-marketable equity securities |  |  |  |  | 180 |  |  | 180 |
Convertible debt instrument |  |  |  |  | 13,849 |  |  | — |
Total equity and other investments |  |  |  |  | $ | 20,226 |  |  | $ | 7,889 |
During the first quarter of 2026, the Company invested 12 million euro ($13.8 million) in a convertible debt instrument issued by a life sciences company that matures on December 31, 2035. The instrument has a stated interest of 4.55%, payable periodically during the term of the instrument. Depending on certain operational and financial targets, the Company may invest an additional 3 million euro under the same terms. The instrument is senior to all other indebtedness, and is secured by the assets of the investee. The Company considered guidance within ASC 815 and concluded the conversion option did not require bifurcation as an embedded derivative instrument. The components of (Gain) loss on equity investments for each period were as follows (in thousands):
| Three Months Ended |  |
| April 3, 2026 |  | March 28, 2025 |  |  |  |
Equity method investment (gain) loss | $ | 1,468 |  |  | $ | (181) |  |  |  |  |
The Company’s equity method investment is in a venture capital fund focused on investing in life sciences companies. As of April 3, 2026, the Company owned 8.0% of this fund.

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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/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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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