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Fair Value Measurements and Fair Value of Financial Instruments
 6 Months Ended
Jun. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements and Fair Value of Financial Instruments
Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:
•Level 1—Quoted prices in active markets for identical assets or liabilities.
•Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
•Level 3—Unobservable inputs based on the Company's own assumptions.
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis:
Fair Value as of June 28, 2025
(In thousands)Level 1Level 2Level 3Total
Assets:
Money market funds and time deposits (a)$14,584 $— $— $14,584 
Banker's acceptance drafts (b)$— $6,287 $— $6,287 
Forward currency-exchange contracts (c)$— $3 $— $3 
Liabilities:    
Contingent consideration (d)
$— $— $1,766 $1,766 

Fair Value as of December 28, 2024
(In thousands)Level 1Level 2Level 3Total
Assets:
Money market funds and time deposits (a)$21,248 $— $— $21,248 
Banker's acceptance drafts (b)$— $5,299 $— $5,299 
Liabilities:    
Forward currency-exchange contracts (c)
$— $39 $— $39 
Contingent consideration (d)
$— $— $1,678 $1,678 
(a)Included in cash and cash equivalents in the accompanying condensed consolidated balance sheet.
(b)Included in accounts receivable in the accompanying condensed consolidated balance sheet.
(c)Included in other current assets at June 28, 2025 and other current liabilities at December 28, 2024 in the accompanying condensed consolidated balance sheet.
(d)Included in other long-term liabilities in the accompanying condensed consolidated balance sheet.

The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during the first six months of 2025. Banker's acceptance drafts are carried at face value, which approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The forward currency-exchange contracts are hedges of either recorded assets or liabilities or anticipated transactions and represent the estimated amount the Company would receive or pay upon liquidation of the contracts. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above.
In connection with the acquisition of a technology company in August 2024, the Company assumed contingent consideration with a fair value of $1,785,000 measured at the date of acquisition. The contingent consideration is payable upon the achievement of certain revenue performance targets earned between June 30, 2025 and June 30, 2027. The maximum future value of the contingent consideration subject to payment is approximately $11,443,000, calculated using the foreign currency spot rate at June 28, 2025.
The Company uses the income approach technique to estimate the fair value of its Level 3 contingent consideration, including valuation models that incorporate probability adjusted assumptions and simulations related to the achievement of milestones and the likelihood of making the related payment. The unobservable inputs used in the fair value measurements include the probability of successful achievement of certain revenue targets, forecasted revenue, revenue volatility, and discount rates. These assumptions were estimated based on a review of historical and projected results. Projected contingent consideration related to revenue-based payments are discounted back to the current period using a discounted cash flow model. Changes to the fair value of contingent consideration can result from changes to one or multiple inputs, including the discount rate, projected revenue, revenue volatility, and the assumed probabilities of successful achievement of certain revenue targets.
The following table provides a rollforward of the change in the fair value of the contingent consideration as determined by Level 3 inputs during the first six months of 2025:
(In thousands)
Total
Balance at December 28, 2024
$1,678 
Currency translation
88 
Balance at June 28, 2025
$1,766 
The carrying value and fair value of debt obligations, excluding lease obligations, are as follows:
June 28, 2025December 28, 2024
(In thousands)Carrying ValueFair ValueCarrying ValueFair Value
Debt Obligations:
Revolving credit facility$239,214 $239,214 $278,384 $278,384 
Senior promissory notes6,660 6,611 6,660 6,511 
Other1,345 1,345 1,460 1,460 
$247,219 
 
$247,170 $286,504 $286,355 
The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust frequently, based on prevailing market rates. The fair value of the senior promissory notes is primarily calculated based on quoted market rates plus an applicable margin available to the Company at the respective period end, which represent Level 2 measurements.