Loss on Sale of Investments

[Table of Contents](#ic085909a172f44ef92ae922b1099b569_7)  
Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at March 26, 2022:   


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |   |  | Fair Value at Reporting Date Using |
|   | Balance as of March 26, 2022 |  | Quoted Prices inActive Market forIdentical Assets(Level 1) |  | SignificantOtherObservableInputs (Level 2) |  | SignificantUnobservableInputs (Level 3) |
| Assets: |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| Interest rate swap | $ | 17.7  |  |  | $ | —  |  |  | $ | 17.7  |  |  | $ | —  |  |
|  |  |  |  |  |  |  |  |
| Forward foreign currency contracts | 10.6  |  |  | —  |  |  | 10.6  |  |  | —  |  |
| Total | $ | 28.3  |  |  | $ | —  |  |  | $ | 28.3  |  |  | $ | —  |  |
| Liabilities: |  |  |  |  |  |  |  |
| Contingent consideration | $ | 58.8  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 58.8  |  |
|  |  |  |  |  |  |  |  |
| Forward foreign currency contracts | 2.7  |  |  | —  |  |  | 2.7  |  |  | —  |  |
| Total | $ | 61.5  |  |  | $ | —  |  |  | $ | 2.7  |  |  | $ | 58.8  |  |

  
Liabilities Measured and Recorded at Fair Value on a Recurring Basis  
Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3), which solely consisted of contingent consideration liabilities, during the three and six month periods ended March 26, 2022 and March 27, 2021 were as follows:  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three Month Ended |  | Six Months Ended |
|  |  | March 26, 2022 |  | March 27, 2021 |  | March 26, 2022 |  | March 27, 2021 |
| Balance at beginning of period | $ | 71.0  |  |  | $ | 86.4  |  |  | $ | 75.1  |  |  | $ | 81.8  |  |
|  | Contingent consideration recorded at acquisition | —  |  |  | —  |  |  | —  |  |  | —  |  |
|  | Fair value adjustments | —  |  |  | (14.7) |  |  | (4.1) |  |  | (10.1) |  |
|  | Payments | (12.2) |  |  | —  |  |  | (12.2) |  |  | —  |  |
| Balance at end of period | $ | 58.8  |  |  | $ | 71.7  |  |  | $ | 58.8  |  |  | $ | 71.7  |  |

  
Assets Measured and Recorded at Fair Value on a Nonrecurring Basis  
The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets are comprised of equity investments and long-lived assets, including property, plant and equipment, intangible assets, goodwill and right of use assets. During the first quarter of fiscal 2022, the Company recorded a $4.3 million charge to write-off an equity method investment. There were no other remeasurements in the three and six months ended March 26, 2022 and March 27, 2021.   
Disclosure of Fair Value of Financial Instruments  
The Company’s financial instruments mainly consist of cash and cash equivalents, accounts receivable, equity investments, an interest rate swap, forward foreign currency contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. The Company’s interest rate swap and forward foreign currency contracts are recorded at fair value. The carrying amount of the insurance contracts are recorded at the cash surrender value, as required by GAAP, which approximates fair value. The Company believes the carrying amounts of its equity investments approximate fair value.  
13
