Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.19.3.a.u2
Fair Value Measurements
12 Months Ended
Dec. 26, 2019
Fair Value Measurements  
Fair Value Measurements

7. Fair Value Measurements

We measured certain financial assets and financial liabilities at fair value on a recurring basis as follows for the periods presented.

As of

December 26,

(in thousands)

2019

    

Level 1

    

Level 2

    

Level 3

Designated as hedges:

Interest rate cap (cash flow hedge)

$

20

$

$

20

$

Not designated as hedges:

Interest rate cap

$

$

$

$

As of

December 27,

(in thousands)

    

2018

    

Level 1

    

Level 2

    

Level 3

Designated as hedges:

Interest rate cap (cash flow hedge)

$

1,076

$

$

1,076

$

Not designated as hedges:

Interest rate cap

$

1,075

$

$

1,075

$

Our derivative contracts are negotiated with counterparties without going through a public exchange. Accordingly, our fair value assessments give consideration to the risk of counterparty default (as well as our own credit risk). Our interest rate derivatives consist of interest rate cap contracts and are valued primarily based on data readily observable in public markets.

See Note 1, “Summary of Significant Accounting Policies” and Note 5, “Intangible Assets” for a discussion of the valuation of goodwill and intangible assets, respectively. See Note 10, “Debt” for discussion of the fair value of the Company’s debt.

The estimated fair values of other financial assets and liabilities including cash and cash equivalents, receivables, prepaid expenses and other current assets, other assets, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values as reported within the Consolidated Balance Sheets.