Fair Value Measurements
Our assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 — quoted market prices in active markets for identical assets and liabilities; Level 2 — observable market-based inputs or unobservable inputs that are corroborated by market data; and Level 3 — unobservable inputs that are not corroborated by market data.
As of December 27, 2025, our assets and liabilities measured at fair value on a recurring basis are categorized in the table below:
 December 27, 2025
TotalLevel 1Level 2Level 3
Assets:
Derivative assets$14,183 $— $14,183 $— 
Investments held in Rabbi Trust93,001 93,001 — — 
Total assets at fair value$107,184 $93,001 $14,183 $— 
Liabilities:
Derivative liabilities$6,692 $— $6,692 $— 
Total liabilities at fair value$6,692 $— $6,692 $— 
As of December 28, 2024, our assets and liabilities measured at fair value on a recurring basis are categorized in the table below:
 December 28, 2024
TotalLevel 1Level 2Level 3
Assets:
Derivative assets$22,126 $— $22,126 $— 
Investments held in Rabbi Trust93,770 93,770 — — 
Total assets at fair value$115,896 $93,770 $22,126 $— 
Liabilities:
Derivative liabilities$780 $— $780 $— 
Contingent consideration2,888 — — 2,888 
Total liabilities at fair value$3,668 $— $780 $2,888 
The fair value of the cash equivalents approximated its carrying value and the gain or loss on the marketable trading securities was recognized in the Consolidated Statements of Income to reflect these investments at fair value.
Our senior secured notes due in 2029 and Term Loan Credit Facility are stated at amortized cost, and their respective fair values were determined based on Level 2 criteria. The fair values and carrying values of these notes are shown in the tables below:
December 27, 2025
Fair Value
TotalLevel 1Level 2Level 3Carrying
Value
Senior secured notes, 4.75% due 2029
$1,962,500 $— $1,962,500 $— $1,976,786 
Term loan credit facility805,910 — 805,910 — 764,849 
$2,768,410 $— $2,768,410 $— $2,741,635 
December 28, 2024
Fair Value
TotalLevel 1Level 2Level 3Carrying
Value
Senior secured notes, 4.75% due 2029
$1,885,000 $— $1,885,000 $— $1,969,768 
Term loan credit facility931,535 — 931,535 — 885,882 
$2,816,535 $— $2,816,535 $— $2,855,650 
The carrying amounts of our trade accounts receivable, accounts payable and accrued expenses and other approximate fair value because of the short maturity of these items. Our ABL Revolving Credit Facility and European revolving trade accounts receivable-backed financing program bear interest at variable rates based on designated local reference rates and commercial paper rates, respectively, plus a predetermined fixed margin. The interest rates of our revolving unsecured credit facilities and other debt are dependent upon the local short-term bank indicator rate for a particular currency, which also resets regularly. The carrying amounts of all these facilities approximate their fair value because of the revolving nature of the borrowings and because the all-in rate (consisting of variable rates and fixed margin) adjusts regularly to reflect current market rates with appropriate consideration for our credit profile.

Historical Timeline

Fiscal YearFiled
2025Mar 3, 2026Showing above
2024Mar 5, 2025

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.