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Fair Value of Instruments

9 Months Ended

Sep. 27, 2025

Fair Value of Instruments

Fair Value of Instruments

Note D – Fair Value of Instruments

The following table presents the effect of the Company’s derivative instruments designated as cash flow hedges under Accounting Standards Codification (“ASC”) Topic 815, “Hedge Accounting Improvements,” in its unaudited Condensed Consolidated Statements of Operations for the nine months ended September 27, 2025:

Derivative Instruments		Amount of Gain Recognized in Accumulated Other Comprehensive Income				Amount of Loss Reclassified from Accumulated Other Comprehensive Income into Earnings				Location in Condensed Consolidated Statement of Income
Designated foreign currency hedge contracts		$	480,342			$	(284,130	)		Cost of products sold

ASC 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. The Company determines the fair value of its derivative instruments using the framework prescribed by ASC 820, “Fair Value Measurements and Disclosures,” by considering the estimated amount it would receive or pay to sell or transfer these instruments at the reporting date. Generally, the Company uses inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of September 27, 2025, the Company classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2	Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable.

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of September 27, 2025, and December 28, 2024:

		Location in Condensed Consolidated Balance Sheets		As of September 27, 2025				As of December 28, 2024
Derivative Assets:
Designated foreign currency hedge contracts		Other current assets		$	404,362			$	-

Designated foreign currency hedge contracts		Other long-term assets		$	75,980			$	-

Derivative Liabilities:
Designated foreign currency hedge contracts		Other current liabilities		$	-			$	505,376