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Fair value measurement | 6 Months Ended
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Jul. 02, 2023
Fair Value Disclosures [Abstract] |
Fair value measurement | Fair value measurement The following tables provide information regarding our financial assets and liabilities measured at fair value on a recurring basis as of July 2, 2023 and December 31, 2022:
| Total carrying value at July 2, 2023 |  | Quoted prices in active markets (Level 1) |  | Significant other observable Inputs (Level 2) |  | Significant unobservable Inputs (Level 3)
Investments in marketable securities | $ | 12,211 |  |  | $ | 12,211 |  |  | $ | — |  |  | $ | — |
Derivative assets | 49,281 |  |  | — |  |  | 49,281 |  |  | — |
Derivative liabilities | 3,411 |  |  | — |  |  | 3,411 |  |  | — |
Contingent consideration liabilities | 37,125 |  |  | — |  |  | — |  |  | 37,125 |
| Total carrying value at December 31, 2022 |  | Quoted prices in active markets (Level 1) |  | Significant other observable Inputs (Level 2) |  | Significant unobservable Inputs (Level 3)
Investments in marketable securities | $ | 10,097 |  |  | $ | 10,097 |  |  | $ | — |  |  | $ | — |
Derivative assets | 63,610 |  |  | — |  |  | 63,610 |  |  | — |
Derivative liabilities | 1,460 |  |  | — |  |  | 1,460 |  |  | — |
Contingent consideration liabilities | 44,022 |  |  | — |  |  | — |  |  | 44,022 |
Valuation Techniques Our 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 our benefit plans and other arrangements. The investment assets of the trust are valued using quoted market prices. Our financial assets and liabilities valued based upon Level 2 inputs are comprised of foreign currency forward contracts and cross-currency interest rate swap agreements. We use foreign currency forwards and cross-currency interest rate swaps to manage foreign currency transaction exposure, as well as exposure to foreign currency denominated monetary assets and liabilities. We measure the fair value of the foreign currency forwards and cross-currency swaps 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. Our financial liabilities valued based upon Level 3 inputs (inputs that are not observable in the market) are comprised of contingent consideration arrangements pertaining to our acquisitions. 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. We determine the fair value of certain 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 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 our significant contingent consideration liabilities.
Contingent Consideration Liability |  | Valuation Technique |  | Unobservable Input
Revenue-based |  |  |  |  |  |
|  | Monte Carlo simulation |  | Revenue volatility |  | 31.4 | %
|  |  |  | Risk free rate |  | Cost of debt structure
|  |  |  | Projected year of payment |  | 2024 - 2026
The following table provides information regarding changes in our contingent consideration liabilities for the three and six months ended July 2, 2023:
| Contingent consideration
Balance – December 31, 2022 | $ | 44,022 |
Payments | (121) |
Revaluations | (6,776) |
Balance – July 2, 2023 | $ | 37,125 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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