Fair Value of Financial Instruments The following table summarizes the Company's financial instruments measured at fair value on a recurring basis as of June 27, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Fair Value Measurements |
| | | June 27, 2025 | | Level 1 | | Level 2 | | Level 3 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Liabilities: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Interest rate swap | | $ | 5,391 | | | $ | — | | | $ | 5,391 | | | $ | — | |
| | | | | | | | |
| Total measured at fair value | | $ | 5,391 | | | $ | — | | | $ | 5,391 | | | $ | — | |
The carrying values of cash and cash equivalents, including money market funds, restricted cash, accounts receivable and payable, contract assets and liabilities and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The Company determined the carrying value of long-term debt approximated fair value due to variable interest rates charged on the borrowings, which reprice frequently.
During the first quarter ended September 29, 2023, the Company entered into an interest rate hedging agreement (the “September 2023 Swap”).
The fair value of the September 2023 Swap is estimated using a discounted cash flow analysis based on the contractual terms of the derivative, leveraging observable inputs other than quoted prices, such as interest rates. As of June 27, 2025, the fair value of the September 2023 Swap was a liability of $5,391 and is included within Other non-current liabilities in the Company's Consolidated Balance Sheets.
The following table summarizes the Company's financial instruments measured at fair value on a recurring basis as of June 28, 2024:
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value Measurements |
| June 28,2024 | | Level 1 | | Level 2 | | Level 3 |
| Liabilities: | | | | | | | |
| Interest rate swap | $ | 2,436 | | | $ | — | | | $ | 2,436 | | | $ | — | |
| Total measured at fair value | $ | 2,436 | | | $ | — | | | $ | 2,436 | | | $ | — | |
The fair value of interest rate hedging agreement entered on September 29, 2022 ("the September 2022 Swap") is estimated using a discounted cash flow analysis based on the contractual terms of the derivative, leveraging observable inputs other than quoted prices, such as interest rates. As of June 28, 2024, the fair value of the September 2022 Swap was a liability of $2,436 and included within Other non-current liabilities in the Company's Consolidated Balance Sheets. The Company terminated the September 2022 Swap during the first quarter ended September 29, 2023.
Refer to Note Q for further information regarding the September 2023 Swap and the termination of the September 2022 Swap.