Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.24.2.u1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 29, 2024
Fair Value Disclosures [Abstract]  
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 2024
Financial assets:
Cash equivalents:
Money market funds $ 166,613  $ 166,613  $ —  $ — 
Time deposits 2,280  2,280  —  — 
Foreign currency exchange contracts 5,750  —  5,750  — 
Investment securities 48,711  48,711  —  — 
Financial liabilities:
Foreign currency exchange contracts 4,786  —  4,786  — 
Deferred compensation 51,933  —  51,933  — 
  Fair Value Measurement Using
(In thousands) Total Fair Value Level 1 Level 2 Level 3
December 2023
Financial assets:
Cash equivalents:
Money market funds $ 145,554  $ 145,554  $ —  $ — 
Time deposits 2,283  2,283  —  — 
Foreign currency exchange contracts 16,504  —  16,504  — 
Interest rate swap agreements 3,253  —  3,253  — 
Investment securities 46,250  46,250  —  — 
Financial liabilities:
Foreign currency exchange contracts 5,121  —  5,121  — 
Deferred compensation 49,139  —  49,139  — 
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, at December 2023, 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 and are comprised of mutual funds that are valued based on quoted prices in active markets (Level 1). 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 2024, the carrying value of the Company's long-term debt was $749.7 million compared to a fair value of $711.2 million. At December 2023, the carrying value of the Company's long-term debt was $783.9 million compared to a fair value of $747.1 million. The fair value of long-term debt 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 2024 and December 2023, their carrying values approximated fair value due to the short-term nature of these instruments.