Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 111

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 111
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 rates. As of June 27, 2025, the fair value of the September 2023 Swap was a liability of $5,391 and is included within Other non-current liabilities in the Company's Consolidated Balance Sheets.The following table summarizes the Company's financial instruments measured at fair value on a recurring basis as of June 28, 2024:Fair Value MeasurementsJune 28,2024Level 1Level 2Level 3Liabilities:Interest rate swap$2,436 $— $2,436 $— Total measured at fair value$2,436 $— $2,436 $— The fair value of interest rate hedging agreement entered on September 29, 2022 ("the September 2022 Swap") is estimated using a discounted cash flow analysis based on the contractual terms of the derivative, leveraging observable inputs other than quoted prices, such as interest rates. As of June 28, 2024, the fair value of the September 2022 Swap was a liability of $2,436 and included within Other non-current liabilities in the Company's Consolidated Balance Sheets. The Company terminated the September 2022 Swap during the first quarter ended September 29, 2023.Refer to Note Q for further information regarding the September 2023 Swap and the termination of the September 2022 Swap.

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D.Inventory

During fiscal 2025, the Company reclassified $12,675 of work in process inventory to Property and equipment, net to support broader customer outreach for its technologies and to meet anticipated production demands for its solutions through additional testing capabilities. Fiscal 2025 includes the impact of $10,579 of inventory sold in connection to the sale of manufacturing operations to Cicor Group. Inventory was comprised of the following: As of  June 27, 2025June 28, 2024Raw materials$195,496 $200,501 Work in process118,376 118,060 Finished goods19,048 16,739 Total$332,920 $335,300 

E.Property and Equipment

Property and equipment consisted of the following: Estimated Useful Lives(Years)As ofJune 27, 2025June 28, 2024Computer equipment and software3-4$149,342 $138,366 Furniture and fixtures523,176 21,694 Leasehold improvementslesser of