Fair Value Measurements

3 Months Ended

Apr. 04, 2026

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of April 4, 2026 and December 31, 2025 were as follows: 

April 4, 2026	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange derivative contracts	$	—	$	5	$	—	$	5
Common stock and equivalents	35		—		—		35
Liabilities:
Contingent earnout consideration (Note 15)	$	—	$	—	$	111	$	111
Foreign exchange derivative contracts	—		10		—		10

December 31, 2025	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange derivative contracts	$	—	$	10	$	—	$	10
Common stock and equivalents	42		—		—		42
Liabilities:
Contingent earnout consideration (Note 15)	$	—	$	—	$	37	$	37
Foreign exchange derivative contracts	—		19		—		19

The Company had no foreign exchange derivative contracts, equity swap contracts or common stock investments in Level 3 holdings as of April 4, 2026 or December 31, 2025.

At April 4, 2026 and December 31, 2025, the Company had $439 million and $735 million, respectively, of investments in money market government and U.S. treasury funds classified (Level 1) as Cash and cash equivalents in its Condensed Consolidated Balance Sheets. The money market funds had quoted market prices that are equivalent to par.

Using quoted market prices and market interest rates, the fair value of the Company's long-term debt as of April 4, 2026 was $8.9 billion. The fair value of long-term debt as of December 31, 2025 was $9.2 billion.

In connection with the acquisition of Silvus, the Seller will have the potential to earn contingent earnout consideration upon the achievement of certain financial targets. Refer to Note 15, “Intangible Assets and Goodwill” in this “Part 1 – Financial Information” of this Form 10-Q for more information regarding the details of the contingent earnout consideration. The Company determines the fair value of the contingent earnout consideration liability using a Monte Carlo simulation model, which requires the use of Level 3 inputs, such as projected future net sales, gross margin and cash flows. At the acquisition date, the Company recorded a contingent liability of approximately $38 million, related to the estimated fair value of the contingent earnout consideration, which was included in the purchase price. As of April 4, 2026, the fair value of the contingent earnout consideration was estimated to be $111 million, resulting in a charge of $75 million recorded within Other Charges in the Company's Consolidated Statement of Operations during the three months ended April 4, 2026. This non-cash charge is attributable to the Company's updated expectations regarding the achievement of the previously noted financial targets.

All other financial instruments are carried at cost, which is not materially different from the instruments’ fair values.