v3.25.2
Fair Value Measurements and Financial Instruments
 6 Months Ended
Jul. 04, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods:
July 4, 2025January 3, 2025
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Deferred Compensation Plan Investments$4,455 $— $— $4,455 $4,394 $— $— $4,394 
Interest Rate Swaps— 1,815 — 1,815 — 5,685 — 5,685 
Total assets measured at fair value$4,455 $1,815 $— $6,270 $4,394 $5,685 $— $10,079 
Liabilities:
Incremental Term Loans$— $541,780 $— $541,780 $— $552,061 $— $552,061 
Revolver— 157,000 — 157,000 — 153,000 — 153,000 
Deferred Compensation Plan Liabilities4,434 — — 4,434 4,300 — — 4,300 
Interest Rate Swaps— 168 — 168 — — — — 
Total liabilities measured at fair value$4,434 $698,948 $— $703,382 $4,300 $705,061 $— $709,361 
There were no transfers of assets or liabilities between Level 1, Level 2, and Level 3 categories of the fair value hierarchy during the three and six months ended July 4, 2025.
As of July 4, 2025, the carrying amount of the principal under the Company’s 2022 Credit Facility - Incremental Term Loans and Revolver approximated fair value because they had variable interest rates that reflected market changes in interest rates and changes in the Company’s net leverage ratio.
The Company mitigates the cash flow risk associated with changes in interest rates on its variable rate debt through interest rate swap agreements. Refer to Note 9 - Derivatives and Hedging for additional details of the agreements. In accordance with ASC 815, interest rate swap contracts are recognized as assets or liabilities on the condensed consolidated balance sheets and are measured at fair values. The fair values were estimated based on expected cash flows over the life of the swaps. These expected cash flows were determined using a pricing model that incorporated reasonable assumptions and available market data.
The Company invests in marketable securities to mitigate the risk associated with the investment return on the non-qualified deferred compensation plan provided to executives and non-employee directors. The investments are recorded as cash and cash equivalents at their quoted market price. The corresponding deferred compensation plan liabilities are recorded at fair value based on the quoted market price of the underlying investments and are included in accrued expenses on the condensed consolidated balance sheets.