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Business Combinations (Tables) | 6 Months Ended
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Jun. 28, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Schedule of Fair Value of Consideration Transferred | The acquisition date fair value of the consideration transferred consisted of the following (in thousands):
Cash paid at close | $ | 36,000 |
Fixed deferred acquisition consideration | 12,907 |
Total purchase consideration | $ | 48,907 |
The acquisition date fair value of the consideration transferred consisted of the following (in thousands):
Cash paid at close (1) | $ | 14,102 |
Earnout contingent consideration (2) | 5,380 |
Total purchase consideration | $ | 19,482 |
_________________________ (1) Cash paid at close does not include the acquisition-related costs which are expensed when incurred and are not purchase consideration. (2) The earnout was accounted for as contingent consideration at fair value and was valued using a Monte Carlo simulation model, applying a revenue discount rate of 6.3% to the projected revenue inputs and a discount rate of 7.75% to present value the resulting payment as of the acquisition date. The fair value measurement was based on significant inputs not observable in the market, including projected revenue, probability, and the timing of achieving the earnout targets.
Schedule of Purchase Price Allocation | The purchase price allocation is as follows (in thousands):
Assets acquired: |
Inventory | $ | 1,911 |
Intangible assets | 19,090 |
Goodwill | 27,906 |
Total assets acquired | $ | 48,907 |
Liabilities assumed: |
Total liabilities assumed | $ | — |
Fair value of assets acquired and liabilities assumed, net | $ | 48,907 |
The purchase price allocation is as follows (in thousands):
Assets acquired: |
Cash | $ | 27 |
Restricted cash (1) | 1,920 |
Inventories | 2,455 |
Other acquired assets | 433 |
Intangible assets | 7,840 |
Goodwill | 8,992 |
Total assets acquired | $ | 21,667 |
Liabilities assumed: |
Accounts payable | $ | 1,960 |
Other assumed liabilities | 225 |
Total liabilities assumed | $ | 2,185 |
Fair value of assets acquired and liabilities assumed, net | $ | 19,482 |
_________________________ (1) Restricted cash is in escrow funds to secure post-acquisition indemnification obligations and working capital adjustments.
Schedule of Intangible Assets Acquired | The fair values and useful lives of identifiable intangible assets were as follows:
| Gross amount |  | Estimated useful life
| (In thousands) |  | (In years)
Customer relationship (1) | $ | 8,320 |  |  | 10
Proprietary technologies (2) | 9,670 |  |  | 5 - 10
Trade names (3) | 1,100 |  |  | 13
Total intangible assets | $ | 19,090 |  |  |
_________________________ (1) Customer relationship intangible assets were valued using the multi-period excess earnings method, which is the present value of the projected cash flows expected to be generated by the existing customer relationships, after deducting contributory asset charges representing a fair return on other assets required to generate those cash flows. Key assumptions included discounted cash flow and estimated customer retention rates. (2) Proprietary technologies intangible assets comprised of various developed technologies, which were valued using the relief-from-royalty method and the multi-period excess earnings method. For the proprietary technology intangible asset valued using the relief-from-royalty method, which is based on the discounted cash flow savings accruing to the owner from not having to license the technology from a third party. Key assumptions included attributable revenue, royalty rates, and technology obsolescence rates. For the proprietary technology intangible asset valued using the multi-period excess earnings method, which is based on the discounted cash flows after deducting contributory asset charges representing a fair return on other assets required to generate those cash flows. Key assumptions included attributable revenue, profitability, cash flows, and technology obsolescence rates. (3) Trade names intangible assets were valued using the relief from royalty method, which is the discounted cash flow savings accruing to the owner by virtue of the fact that the owner is not required to license the trade names from a third party. Key assumptions included attributable revenue expected from the trade names, royalty rates, and assumed asset life. The fair values and useful lives of identifiable intangible assets were as follows:
| Gross amount |  | Estimated useful life
| (In thousands) |  | (In years)
Customer relationship (1) | $ | 470 |  |  | 5
Proprietary technologies (2) | 4,810 |  |  | 10
Trade names (3) | 2,560 |  |  | 10
Total intangible assets | $ | 7,840 |  |  |
_________________________ (1) Customer relationship intangible assets were valued using the distributor method, which is the present value of the after-tax cash flows expected to be generated by the existing customer relationships, after reduction by an estimated fair rate of return on contributory assets required to generate the customer relationship revenues. Key assumptions included the discount rate, estimated customer retention rates, and the selected distributor profit margin derived from guideline public distributor companies. (2) Proprietary technologies intangible assets were valued using the multi-period excess earnings method based on the discounted cash flows and technology obsolescence rate. Key assumptions included attributable revenue, profitability, cash flows, and technology obsolescence rates. (3) Trade names intangible assets were valued using the relief from royalty method, which is the discounted cash flow savings accruing to the owner by virtue of the fact that the owner is not required to license the trade names from a third party. Key assumptions included attributable revenue expected from the trade names, royalty rates, and assumed asset life.

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