Fair Value Measurements

9 Months Ended

Sep. 25, 2022

Fair Value Measurements:

The table below presents the balances of assets and liabilities measured at fair value as of September 25, 2022, December 31, 2021, and September 26, 2021 on a recurring basis as well as the fair values of other financial instruments, including their locations within the unaudited condensed consolidated balance sheets:


(In thousands)	Balance Sheet Location	Fair Value Hierarchy Level	September 25, 2022				December 31, 2021				September 26, 2021
			Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets (liabilities) measured on a recurring basis:
Short-term investments	Other current assets	Level 1	$	279	$	279	$	478	$	478	$	561	$	561
Interest rate swaps	Derivative Liability	Level 2	—		—		$	(20,086)	$	(20,086)	$	(28,504)	$	(28,504)
Other financial assets (liabilities):
Term debt	Long-Term Debt (1)	Level 2	—		—		$	(264,250)	$	(257,644)	$	(264,250)	$	(258,965)
2024 senior notes	Long-Term Debt (1)	Level 1	—		—		—		—		$	(450,000)	$	(454,500)
2025 senior notes	Long-Term Debt (1)	Level 2	$	(1,000,000)	$	(975,000)	$	(1,000,000)	$	(1,035,000)	$	(1,000,000)	$	(1,040,000)
2027 senior notes	Long-Term Debt (1)	Level 1	$	(500,000)	$	(460,000)	$	(500,000)	$	(513,750)	$	(500,000)	$	(514,375)
2028 senior notes	Long-Term Debt (1)	Level 1	$	(300,000)	$	(283,500)	$	(300,000)	$	(319,125)	$	(300,000)	$	(322,500)
2029 senior notes	Long-Term Debt (1)	Level 1	$	(500,000)	$	(441,250)	$	(500,000)	$	(513,750)	$	(500,000)	$	(512,500)

(1)Carrying values of long-term debt balances are before reductions for debt issuance costs and original issue discount of $34.5 million, $45.3 million and $50.2 million as of September 25, 2022, December 31, 2021 and September 26, 2021, respectively.

Fair values of the interest rate swap agreements are determined using significant inputs, including the LIBOR forward curves, which are considered Level 2 observable market inputs.

The carrying value of cash and cash equivalents, revolving credit loans, accounts receivable, accounts payable, and accrued liabilities approximates fair value because of the short maturity of these instruments. There were no assets measured at fair value on a non-recurring basis as of September 25, 2022, December 31, 2021 or September 26, 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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