4. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at January 3, 2026 and December 28, 2024.

 

 

 

 

January 3, 2026

 

 

 

 

 

 

 

 

 

Significant Other

 

 

Significant

 

 

 

 

 

 

Quoted Market

 

 

Observable

 

 

Unobservable

 

 

 

Total

 

 

Prices (Level 1)

 

 

Inputs (Level 2)

 

 

Inputs (Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contracts

 

$

 

 

$

 

 

$

 

 

$

 

Total

 

$

 

 

$

 

 

$

 

 

$

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

0.4

 

 

$

 

 

$

 

 

$

0.4

 

Total

 

$

0.4

 

 

$

 

 

$

 

 

$

0.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 28, 2024

 

 

 

 

 

 

 

 

 

Significant Other

 

 

Significant

 

 

 

 

 

 

Quoted Market

 

 

Observable

 

 

Unobservable

 

 

 

Total

 

 

Prices (Level 1)

 

 

Inputs (Level 2)

 

 

Inputs (Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contract

 

$

 

 

$

 

 

$

 

 

$

 

Total

 

$

 

 

$

 

 

$

 

 

$

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

 

0.4

 

 

 

 

 

 

 

 

 

0.4

 

Total

 

$

0.4

 

 

$

 

 

$

 

 

$

0.4

 

 

A summary of changes in the estimated fair value of contingent consideration at January 3, 2026 and December 28, 2024 is as follows:

 

Balance at December 30, 2023

 

$

0.5

 

Payment on liability

 

 

(0.5

)

Accretion in value

 

 

0.4

 

Balance at December 28, 2024

 

$

0.4

 

Payment on liability

 

 

 

Balance at January 3, 2026

 

$

0.4

 

Historical Timeline

Fiscal YearFiled
2026Mar 3, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Mar 2, 2021
2019Feb 25, 2020
2018Feb 26, 2019
2017Feb 27, 2018
2016Mar 1, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.