Helios Technologies Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value of Financial Instruments

Fair Value of Financial Instruments

12 Months Ended

Dec. 30, 2023

4. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at December 30, 2023 and December 31, 2022.


	December 30, 2023
					Significant Other		Significant
			Quoted Market		Observable		Unobservable
	Total		Prices (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Assets
Interest rate swap contracts	$	6.7	$	—	$	6.7	$	—
Total	$	6.7	$	—	$	6.7	$	—
Liabilities
Contingent consideration	$	0.5	$	—	$	—	$	0.5
Total	$	0.5	$	—	$	—	$	0.5


	December 31, 2022
					Significant Other		Significant
			Quoted Market		Observable		Unobservable
	Total		Prices (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Assets
Interest rate swap contract	$	11.1	$	—	$	11.1	$	—
Forward foreign exchange contracts		1.0		—		1.0		—
Total	$	12.1	$	—	$	12.1	$	—
Liabilities
Forward foreign exchange contracts	$	0.3	$	—	$	0.3	$	—
Contingent consideration		6.7		—		—		6.7
Total	$	7.0	$	—	$	0.3	$	6.7

A summary of changes in the estimated fair value of contingent consideration at December 30, 2023 and December 31, 2022 is as follows:


Balance at January 1, 2022	$	6.4
Change in estimated fair value		1.3
Payment on liability		(1.1	)
Accretion in value		0.5
Currency remeasurement		(0.4	)
Balance at December 31, 2022	$	6.7
Change in estimated fair value		(0.7	)
Payment on liability		(6.1	)
Accretion in value		0.6
Balance at December 30, 2023	$	0.5

- 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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