XML 31 R21.htm IDEA: XBRL DOCUMENT v3.25.1
Financial Instruments and Fair Value Measurements
 3 Months Ended
Mar. 28, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurements
14.Financial Instruments and Fair Value Measurements
Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level fair value hierarchy as follows:
•Level 1 — observable inputs such as quoted prices in active markets for identical assets or liabilities;
•Level 2 — significant other observable inputs that are observable either directly or indirectly; and
•Level 3 — significant unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions.
The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period:
Fair Value Measurement
Using Fair Value Hierarchy:
March 28,
2025		Level 1Level 2Level 3
Assets:
Debt and equity securities held in rabbi trusts$25.2 $16.8 $8.4 $— 
Equity securities5.8 5.8 — — 
Interest rate cap2.7 — 2.7 — 
$33.7 $22.6 $11.1 $— 
Liabilities:
Deferred compensation liabilities$19.5 $— $19.5 $— 
Contingent consideration liabilities17.4 — — 17.4 
$36.9 $— $19.5 $17.4 
Fair Value Measurement
Using Fair Value Hierarchy:
December 27,
2024		Level 1Level 2Level 3
Assets:
Debt and equity securities held in rabbi trusts$25.4 $17.4 $8.0 $— 
Equity securities12.0 12.0 — — 
Interest rate cap5.3 — 5.3 — 
$42.7 $29.4 $13.3 $— 
Liabilities:
Deferred compensation liabilities$22.5 $— $22.5 $— 
Contingent consideration liabilities17.5 — — 17.5 
$40.0 $— $22.5 $17.5 
Debt and equity securities held in rabbi trusts. Debt securities held in rabbi trusts primarily consist of U.S. government and agency securities and corporate bonds. When quoted prices are available in an active market, the investments are classified as level 1. When quoted market prices for a security are not available in an active market, they are classified as level 2. Equity securities held in rabbi trusts primarily consist of U.S. common stocks, which are valued using quoted market prices reported on nationally recognized securities exchanges.
Equity securities. Equity securities consist of shares in Silence Therapeutics plc and Panbela Therapeutics, Inc. for which quoted prices are available in an active market; therefore, these investments are classified as level 1 and are valued based on quoted market prices reported on internationally recognized securities exchanges. The three months ended March 28, 2025 and March 29, 2024 included $6.2 million unrealized losses and $7.0 million of unrealized gains, respectively, on equity securities related to investments in Silence Therapeutics plc and Panbela Therapeutics, Inc. These amounts were recorded within other (expense) income, net in the unaudited condensed consolidated statements of operations.
Interest rate cap. The Company is exposed to interest rate risk on its variable-rate debt. During the three months ended March 31, 2023, the Company entered into an interest rate cap agreement, which serves to reduce the volatility on future interest expense cash outflows. The interest rate cap agreement has a total notional value of $860.0 million with an upfront premium of $20.0 million and provides the Company with interest rate protection, through March 26, 2026, to the extent that the one-month secured overnight funding rate (“SOFR”) exceeds 3.84%. For purposes of the interest rate cap, SOFR is measured on a predetermined business day of every month, which may not coincide with either the Company’s fiscal period end or the date that SOFR is determined for purposes of the First and Second-Out Takeback Term Loans. The impact of the interest rate cap on the Company’s applicable interest rates as disclosed in Note 11 reflects the SOFR rate in effect on March 28, 2025.
The interest rate cap agreement is not accounted for as a cash flow hedge and the changes in fair value of the interest rate cap were recorded within other (expense) income, net in the unaudited condensed consolidated statements of operations. The fair value of the interest rate cap is included in other assets on the Company’s unaudited condensed consolidated balance sheets as of March 28, 2025 and December 27, 2024.
The Company elected to use the income approach to value the interest rate cap derivative using observable level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) reflecting current market expectations about those future amounts. Level 2 inputs for derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts) and inputs other than quoted prices that are observable such as SOFR rate curves, futures and volatilities. Mid-market pricing is used as a practical expedient in the fair value measurements. During the three months ended March 28, 2025 and March 29, 2024, the Company recognized $2.6 million and $2.1 million of unrealized gains, respectively, in other (expense) income, net, in the unaudited condensed consolidated statements of operations related to the changes in fair value of the interest rate cap.