Commitments and Contingencies

6 Months Ended

Jun. 26, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

5. Commitments and Contingencies

Acquisitions

We have contingent consideration related to certain of our prior acquisitions due to the uncertainty of the ultimate amount of payment which will become due as earnout payments if performance targets are achieved. As of June 26, 2021 and December 26, 2020, we accrued $10.4 million and $8.0 million, respectively, representing the fair value of the estimated payments that we expected would become due in connection with prior acquisitions based upon performance targets. For the three and six months ended June 26, 2021, we increased this accrual by $2.4 million, primarily due to the expected payout based on negotiations with the applicable counterparties. The changes in the accrual balance were included in Selling, General and Administration expenses. If the performance targets are fully achieved, the maximum contingent payments under these agreements would be $16.0 million using foreign currency exchange rates at June 26, 2021.

Other Contingencies

We are a party to or otherwise involved in legal proceedings that arise in the ordinary course of business, such as various claims and legal actions involving contracts, employment claims, competitive practices, intellectual property infringement, product liability claims and other matters arising out of the conduct of our business. In the opinion of management, none of the actions, individually or in the aggregate, taking into account relevant insurance coverage, would likely have a material financial impact on the Company, and we believe the range of reasonably possible losses from current matters, taking into account relevant insurance coverage, is immaterial. However, legal matters are subject to inherent uncertainties, and the possibility exists that the ultimate resolution of any of these matters could have a material adverse impact on the Company’s cash flows, financial position and results of operations in the period in which any such effects are recorded.