Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)
12 Months Ended
Dec. 28, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation The table below summarizes changes in contingent earn-out liabilities during the fiscal year ended December 28, 2023.
in thousands Contingent Earn-out Liabilities
Balance at December 29, 2022
$ 11,019 
Acquisition (1)
Fair value adjustments 2,609 
Payments (5,241)
Balance at December 28, 2023
$ 11,137 
(1)    During the fiscal year ended December 28, 2023, the Company acquired a seller of commercial surfaces for total consideration of $20.1 million, including $17.4 million of cash and contingent earn-out consideration with an estimated fair value of $2.8 million. The estimated fair value of the contingent earn-out consideration was determined using a discounted cash flow model which included significant unobservable inputs related to projected revenue and gross margin. Payout of the contingent consideration is subject to the acquired company’s achievement of certain annual gross margin and gross profit targets in fiscal years 2023 through 2025. A portion of these earn-out opportunities is payable each year only to the extent the applicable performance targets for that year are met, with a maximum potential payout of $4.0 million requiring that each of the individual annual targets are achieved. Refer to Note 15, “Acquisitions” for additional information.
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The Company determined the fair value of the portion of the contingent earn-out liabilities related to the fiscal 2021 acquisition of Spartan with assistance from a third-party valuation specialist using a Monte Carlo valuation method with significant unobservable inputs, including the following weighted-average assumptions as of December 28, 2023, and December 29, 2022:
December 28,
December 29,
Discount rate 13.0% 13.5%
Revenue volatility 21.0% 18.6%
EBITDA volatility 40.0% 35.0%