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Fair value measurement
 9 Months Ended
Sep. 29, 2019
Fair Value Disclosures [Abstract]  
Fair value measurement Fair value measurement
For a description of the fair value hierarchy, see Note 11 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2018.
The following tables provide information regarding the Company's financial assets and liabilities that are measured at fair value on a recurring basis as of September 29, 2019 and December 31, 2018:
 Total carrying
value at
September 29, 2019		Quoted prices in active
markets (Level 1)		Significant other
observable
Inputs (Level 2)		Significant
unobservable
Inputs (Level 3)
 (Dollars in thousands)
Investments in marketable securities$10,168  $10,168  $—  $—  
Derivative assets51,898  —  51,898  —  
Derivative liabilities932  —  932  —  
Contingent consideration liabilities206,880  —  —  206,880  
 Total carrying
value at
December 31, 2018		Quoted prices in active
markets (Level 1)		Significant other
observable
Inputs (Level 2)		Significant
unobservable
Inputs (Level 3)
 (Dollars in thousands)
Investments in marketable securities$8,671  $8,671  $—  $—  
Derivative assets16,050  —  16,050  —  
Derivative liabilities8,581  —  8,581  —  
Contingent consideration liabilities304,248  —  —  304,248  
There were no transfers of financial assets or liabilities reported at fair value among Level 1, Level 2 or Level 3 within the fair value hierarchy during the nine months ended September 29, 2019.

Valuation Techniques
The Company’s financial assets valued based upon Level 1 inputs are comprised of investments in marketable securities held in trust, which are available to satisfy benefit obligations under Company benefit plans and other arrangements. The investment assets of the trust are valued using quoted market prices.
The Company’s financial assets and liabilities valued based upon Level 2 inputs are comprised of foreign currency forward contracts and cross-currency interest rate swap agreements. The Company uses foreign currency forward contracts and cross-currency interest rate swap agreements to manage foreign currency transaction exposure, exposure to foreign currency denominated monetary assets and liabilities and exposure to the effect of variability in the U.S. dollar to euro exchange rate. The Company measures the fair value of the foreign currency forward and cross-currency swap agreements by calculating the amount required to enter into offsetting contracts with similar remaining maturities, based on quoted market prices, and taking into account the creditworthiness of the counterparties.

The Company’s financial liabilities valued based upon Level 3 inputs (inputs that are not observable in the market) are comprised of contingent consideration arrangements pertaining to the Company’s acquisitions, which are discussed immediately below.
Contingent consideration
Contingent consideration liabilities, which primarily consist of payment obligations that are contingent upon the achievement of revenue-based goals, but also can be based on other milestones such as regulatory approvals, are remeasured to fair value each reporting period using assumptions including estimated revenues (based on internal operational budgets and long-range strategic plans), discount rates, probability of payment and projected payment dates.
The Company determines the fair value of the contingent consideration liabilities using a Monte Carlo simulation (which involves a simulation of future revenues during the earn out-period using management's best estimates) or a probability-weighted discounted cash flow analysis. Increases in projected revenues, estimated cash flows and probabilities of payment may result in significantly higher fair value measurements; decreases in these items may have the opposite effect. Increases in the discount rates in periods prior to payment may result in significantly lower fair value measurements and decreases in the discount rates may have the opposite effect.
The table below provides additional information regarding the valuation technique and inputs used in determining the fair value of contingent consideration.
Contingent Consideration LiabilityValuation TechniqueUnobservable InputRange
Milestone-based payments
Discounted cash flowDiscount rate
3.1% - 3.7%
Projected year of payment2020 - 2023
Revenue-based payments
Monte Carlo simulationRevenue volatility
18.6% - 23.9%
  Risk free rateCost of debt structure
Projected year of payment2020 - 2022
Discounted cash flowDiscount rate
10.0%
Projected year of payment2019 - 2029
The following table provides information regarding changes in the Company's contingent consideration liabilities during the nine months ended September 29, 2019:
 Contingent consideration
 2019
 (Dollars in thousands)
Balance - December 31, 2018
$304,248  
Payments (1)
(138,098) 
Revaluations
40,894  
Translation adjustment
(164) 
Balance - September 29, 2019
$206,880  
(1) Consists mainly of a $106.8 million payment associated with the Company's acquisition of NeoTract, Inc. and resulting from the achievement of a revenue-based goal for the period from January 1, 2018 to December 31, 2018 and $30.0 million of payments associated with the Company's acquisition of Essential Medical, Inc. and resulting from achievement of a regulatory goal.