Fair Value Measurements

9 Months Ended

Sep. 29, 2023

Fair Value MeasurementsThe carrying values of financial instruments, including Trade receivables and Accounts payable, approximate their fair values due to their short-term maturities. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future.

A summary of the Company’s assets and liabilities that are measured at fair value for each fair value hierarchy level for the periods presented is as follows:


	September 29, 2023
	Level One		Level Two		Level Three		Total
	(In thousands)
Assets:
Cash equivalents	$	2,301	$	—	$	—	$	2,301
Foreign currency contracts - not designated as hedges	—		612		—		612
Interest rate swap agreements	—		16,798		—		16,798
Deferred compensation plans	—		3,205		—		3,205
	$	2,301	$	20,615	$	—	$	22,916

Liabilities:
Foreign currency contracts - not designated as hedges	$	—	$	2,957	$	—	$	2,957
Cross currency swap agreements	—		9,645		—		9,645
Deferred compensation plans	—		3,205		—		3,205
	$	—	$	15,807	$	—	$	15,807


	December 31, 2022
	Level One		Level Two		Level Three		Total
	(In thousands)
Assets:
Cash equivalents	$	8,195	$	—	$	—	$	8,195
Foreign currency contracts - not designated as hedges	—		3,682		—		3,682
Interest rate swap agreements	—		14,342		—		14,342
Deferred compensation plans	—		2,501		—		2,501
	$	8,195	$	20,525	$	—	$	28,720

Liabilities:
Foreign currency contracts - not designated as hedges	$	—	$	2,166	$	—	$	2,166
Cross currency swap agreements	—		10,769		—		10,769
Deferred compensation plans	—		2,501		—		2,501
	$	—	$	15,436	$	—	$	15,436

The Company measures the fair value of foreign currency contracts, cross currency swap agreements and interest rate swap agreements using Level Two inputs based on observable spot and forward rates in active markets. Additionally, the fair value of derivatives designated in hedging relationships includes a credit valuation adjustment to appropriately incorporate nonperformance risk for the Company and the respective counterparty. For the nine months ended September 29, 2023, the impact of the credit valuation adjustment on the Company’s derivatives is immaterial. Refer to Note 10 “Derivatives” for additional information.

There were no transfers in or out of Level One, Two or Three during the nine months ended September 29, 2023.