XML 39 R23.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Fair Value Measurement | 9 Months Ended
--- | ---
Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Fair Value Measurement:Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
Level 3 | Unobservable inputs for the asset or liability
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 (in thousands):
| September 30, 2022 |  | Quoted Prices in Active Markets for Identical Items (Level 1) |  | Quoted Prices in Active Markets for Similar Items (Level 2) |  | Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Available for sale debt securities(a) | $ | 253,701 |  |  | $ | — |  |  | $ | — |  |  | $ | 253,701 |
Investments under executive deferred compensation plan(b) | $ | 25,495 |  |  | $ | 25,495 |  |  | $ | — |  |  | $ | — |
Public equity securities(c) | $ | 12,197 |  |  | $ | 12,197 |  |  | $ | — |  |  | $ | — |
Private equity securities measured at net asset value(d)(e) | $ | 4,716 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign currency forward contracts(f) | $ | 4,968 |  |  | $ | — |  |  | $ | 4,968 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Obligations under executive deferred compensation plan(b) | $ | 25,495 |  |  | $ | 25,495 |  |  | $ | — |  |  | $ | — |
Foreign currency forward contracts(f) | $ | 9,219 |  |  | $ | — |  |  | $ | 9,219 |  |  | $ | — |
| December 31, 2021 |  | Quoted Prices in Active Markets for Identical Items (Level 1) |  | Quoted Prices in Active Markets for Similar Items (Level 2) |  | Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Available for sale debt securities(a) | $ | 246,517 |  |  | $ | — |  |  | $ | — |  |  | $ | 246,517 |
Investments under executive deferred compensation plan(b) | $ | 32,491 |  |  | $ | 32,491 |  |  | $ | — |  |  | $ | — |
Private equity securities measured at net asset value(d)(e) | $ | 4,696 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign currency forward contracts(f) | $ | 3,138 |  |  | $ | — |  |  | $ | 3,138 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Obligations under executive deferred compensation plan(b) | $ | 32,491 |  |  | $ | 32,491 |  |  | $ | — |  |  | $ | — |
Foreign currency forward contracts(f) | $ | 305 |  |  | $ | — |  |  | $ | 305 |  |  | $ | — |
(a)Preferred equity of a Grace subsidiary acquired as a portion of the proceeds of the FCS sale on June 1, 2021. See Note 2, “Divestitures,” for further details on the material terms and conditions. A third-party estimate of the fair value was prepared using expected future cash flows over the period up to when the asset is likely to be redeemed, applying a discount rate that appropriately captures a market participant's view of the risk associated with the investment. These are considered to be Level 3 inputs. (b)We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (c)Holdings in equity securities of public companies reported in Investments in the consolidated balance sheets. The fair value is measured using publicly available share prices of the investments, with any changes reported in Other income (expense), net, in our consolidated statements of income. (d)Primarily consists of private equity securities reported in Investments in the consolidated balance sheets. The changes in fair value are reported in Other income (expense), net, in our consolidated statements of income. (e)Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (f)As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 14, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. The following tables set forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements (in thousands):
| Available for Sale Debt Securities
Beginning balance at December 31, 2021 | $ | 246,517 |
Fair value adjustment | (2,368) |
Accretion of discount | 9,552 |
Ending balance at September 30, 2022 | $ | 253,701 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI https://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration