Fair Value Measurements

6 Months Ended

Jun. 27, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where the Company’s assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation; and Level 3 inputs are unobservable inputs based on the Company’s assumptions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions):

	Quoted Prices in Active Market (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 27, 2025
Assets:
Investments in rabbi trust	$	17.0	$	8.9	$	—	$	25.9
Liabilities:
Cross-currency swap derivative contract	$	—	$	10.5	$	—	$	10.5
Other foreign currency derivative contracts, net	$	—	$	0.1	$	—	$	0.1
Deferred compensation plans	$	—	$	25.9	$	—	$	25.9
December 31, 2024
Assets:
Cross-currency swap derivative contract	$	—	$	5.9	$	—	$	5.9
Investments in rabbi trust	$	16.0	$	8.2	$	—	$	24.2
Liabilities:
Deferred compensation plans	$	—	$	24.2	$	—	$	24.2

Derivative Instruments

The cross-currency swap and the foreign currency forward contracts are classified as Level 2 in the fair value hierarchy. The cross-currency swap is measured using the income approach with the relevant foreign currency current exchange rates and forward curves as inputs. The foreign currency forward contracts are measured using the spot and forward exchange rates for foreign currencies. Refer to Note 8 for additional information.

Deferred Compensation Plans

Certain management or highly compensated employees of the Company participate in nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis. Participants may choose among alternative earning rates for the amounts they defer, which are based on the programs’ investment options. These deferred compensation obligations are classified as Level 2 as inputs are derived principally from, or corroborated by observable market data.

The deferred compensation obligations are funded through a Company established irrevocable rabbi trust, which holds investments that primarily consist of mutual funds and corporate owned life insurance policies. The mutual funds are valued based on quoted market prices and therefore are classified as Level 1. The corporate owned life insurance policies have cash surrender values (which approximate fair value), that derive their values from investments in mutual funds that are managed by an insurance company, are valued using a market approach and therefore are classified within Level 2.

Fair Value of Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions):

	June 27, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Investments in rabbi trust	$	25.9	$	25.9	$	24.2	$	24.2
Cross-currency swap derivative contract	$	—	$	—	$	5.9	$	5.9
Liabilities:
Cross-currency swap derivative contract	$	10.5	$	10.5	$	—	$	—
Other foreign currency derivative contracts, net	$	0.1	$	0.1	$	—	$	—
Convertible senior notes due 2028	$	491.1	$	465.4	$	489.7	$	450.0
Convertible senior notes due 2025	$	—	$	—	$	116.0	$	125.4
Other debt	$	954.0	$	954.0	$	788.6	$	788.6

The fair value of long-term debt approximates the carrying value as these borrowings are based on variable market rates. The fair value of the convertible senior notes due 2028 and convertible senior notes due 2025 were determined based on the quoted bid price of the convertible senior notes in an over-the-counter market on June 27, 2025 and December 31, 2024. The convertible senior notes are considered as Level 2 of the fair value hierarchy. The fair values of cash and cash equivalents, which consist primarily of money market funds, time and demand deposits, trade accounts receivables and trade accounts payable approximate their carrying amounts due to the short-term maturities of these instruments.