Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS - Additional Information (Details)

v3.20.2
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 27, 2020
Jun. 29, 2019
Jun. 27, 2020
Jun. 29, 2019
Dec. 28, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term debt $ 1,136,713 $ 987,187 $ 1,136,713 $ 987,187 $ 913,269
Asset impairments 1,579 $ 0 $ 1,579 $ 1,596  
FAIR VALUE MEASUREMENTS     FAIR VALUE MEASUREMENTS
Certain assets and liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. Categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows:
•Level 1 — Quoted prices in active markets for identical assets or liabilities.
•Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data.
•Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company's own data and judgments about assumptions that market participants would use in pricing the asset or liability.
Recurring Fair Value Measurements
The following tables present financial assets and financial liabilities that are measured and recorded in the Company's financial statements at fair value on a recurring basis:
  Fair Value Measurement Using
(In thousands) Total Fair Value Level 1 Level 2 Level 3
June 2020
Financial assets:
Cash equivalents:
Money market funds $ 194,305    $ 194,305    $ —    $ —   
Time deposits 1,455    1,455    —    —   
Foreign currency exchange contracts 4,559    —    4,559    —   
Investment securities 54,549    54,549    —    —   
Financial liabilities:
Foreign currency exchange contracts 10,019    —    10,019    —   
Interest rate swap agreements 18,832    —    18,832    —   
Deferred compensation 54,766    —    54,766    —   
  Fair Value Measurement Using
(In thousands) Total Fair Value Level 1 Level 2 Level 3
December 2019
Financial assets:
Cash equivalents:
Money market funds $ 25,706    $ 25,706    $ —    $ —   
Time deposits 4,788    4,788    —    —   
Foreign currency exchange contracts 5,563    —    5,563    —   
Investment securities 59,922    56,437    3,485    —   
Financial liabilities:
Foreign currency exchange contracts 2,795    —    2,795    —   
Interest rate swap agreements 3,089    —    3,089    —   
Deferred compensation 60,129    —    60,129    —   
The Company's cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign currency exchange contracts and interest rate swap agreements, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies and observable interest rate yield curves for interest rate swap agreements. Investment securities are held in the Company's deferred compensation plans as an economic hedge of the related deferred compensation liabilities. As of June 2020, these investments are comprised of mutual funds that are valued based on quoted prices in active markets (Level 1). During the three months ended June 2020, all Level 2 investments held in the Company's deferred compensation plans were removed and replaced with mutual fund investment options. Liabilities related to the Company's deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments (Level 2).
Additionally, at June 2020, the carrying value of the Company's long-term debt, including the current portion, was $1,136.7 million compared to a fair value of $1,095.3 million. At December 2019, the carrying value of the Company's long-term debt was $913.3 million compared to a fair value of $906.1 million. The fair value of long-term debt, including the current portion, is a Level 2 estimate based on quoted market prices or values of comparable borrowings.
All other financial assets and financial liabilities are recorded in the Company's financial statements at cost. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, short-term borrowings, accounts payable, and accrued liabilities. At June 2020 and December 2019, their carrying values approximated fair value due to the short-term nature of these instruments.
Nonrecurring Fair Value Measurements
Certain non-financial assets, primarily property, plant and equipment, operating lease assets, goodwill and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, these assets are required to be assessed for impairment when events or circumstances indicate that the carrying value may not be recoverable, and at least annually for goodwill and indefinite-lived intangible assets. In the event that an impairment is required, the asset is adjusted to fair value, using market-based assumptions. As a result of temporary and expected permanent retail store closures, the Company assessed the related retail store assets for impairment and recorded impairment charges of $1.6 million and $1.8 million during the three and six months ended June 2020, respectively. There were no significant impairment charges recorded during the three and six months ended June 2019.
    
Fair Value, Nonrecurring          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Asset impairments 1,600   $ 1,800    
Level 2          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Debt, fair value $ 1,095,300   $ 1,095,300   $ 906,100