The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table summarizes, for assets or liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy:

			Fair Value Measurement at
			Reporting Date Using
Description	September 24, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In millions)
Other non-current assets:
Purchase option	$	1.0	$	—	$	—	$	1.0
Other liabilities:
Forward contracts	$	0.3	$	—	$	0.3	$	—
Pension obligation	$	3.3	$	—	$	—	$	3.3

			Fair Value Measurement at
			Reporting Date Using
Description	December 25, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In millions)
Prepaid expenses and other:
Forward contracts	$	1.1	$	—	$	1.1	$	—
Other liabilities:
Common stock purchase obligation	$	12.6	$	—	$	—	$	12.6
Pension obligation	$	4.7	$	—	$	—	$	4.7

A wholly-owned subsidiary of Ham-Let owns 70.0% interest in Rovac with an option to acquire the remaining 30.0% ownership interest. The fair value of the purchase option recorded in the Company’s financial statements was determined using the Black Scholes option pricing model which utilizes the stock price of Rovac, volatility, expected life and risk-free interest rate based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the purchase option’s expected life. These assumptions were developed during the valuation process resulting in a Level 3 classification.

The estimated fair value of foreign currency forward contracts is based upon quoted market prices obtained from independent pricing services for similar derivative contracts and these financial instruments are characterized as Level 2 assets in the fair value hierarchy.

The estimated fair value of the pension obligation is based on expected years of service and average compensation. The valuation model used to value the pension obligation utilizes mortality rate, inflation, interest rate risks and changes in the life expectancy for pensioners. These assumptions are routinely made in the appraisal process by the independent actuary thus resulted in a Level 3 classification.

The estimated fair value of the common stock purchase obligation is based on a combination of an income and market valuation approach. The income and market valuation approaches may incorporate Level 3 fair value measures for instances when observable inputs are not available. The more significant judgmental assumptions used to estimate the value of the common stock purchase obligation include an estimated discount rate, a range of assumptions that form the basis of the expected future net cash flows (e.g., the revenue growth rates and operating margins), and a company specific beta. The significant judgmental assumptions used that incorporate market data, including the relative weighting of market observable information and the comparability of that information in the valuation models, are forward-looking and could be affected by future economic and market conditions. In July 2021, the Company entered into an amendment with Cinos Korea and a shareholder of Cinos Korea to terminate the obligation to purchase additional interest in Cinos Korea. As a result, the balance of the common stock purchase obligation of $16.4 million was reclassified to the noncontrolling interest in Cinos Korea.

There were no transfers from Level 1 or Level 2. Fair value adjustments were noncash, and therefore did not impact the Company’s liquidity or capital resources. Qualitative information about Level 3 fair value measurements is as follows:

	September 24,		Valuation	Unobservable
	2021		Techniques	Input	Range/Multiple
(Dollars in millions, except rate/multiple)
Purchase option	$	1.0	Black‑Scholes option-pricing model	Volatility		65.0	%
				Risk free interest rate		0.03	%
				Stock price	$	1.2
				Strike price	$	0.1
Pension obligation	$	3.3	Projected unit credit method	Discount rate		2.1	%
				Rate on return		2.6	%
				Salary increase rate		4.0	%

(In millions)	Purchase option		Common stock purchase obligation			Pension obligation
As of December 25, 2020	$	—	$	12.6		$	4.7
Fair value changes	—		1.3				(1.4	)
Reclassifications	—			(13.9	)	—
Acquisition of Ham-Let		1.0	—			—
As of September 24, 2021	$	1.0	$	-		$	3.3