Financial Instruments and Fair Value Measurements

The carrying values of financial instruments, including Trade receivables and Accounts payable, approximate their fair values due to their short-term maturities. The $1.1 billion estimated fair value of the Company’s debt as of September 28, 2018 and December 31, 2017, was based on current interest rates for similar types of borrowings and is in Level Two of the fair value hierarchy. 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 28, 2018
	Level One		Level Two		Level Three		Total
	(In thousands)
Assets:
Cash equivalents	$	29,760	$	—	$	—	$	29,760
Foreign currency contracts related to sales - designated as hedges	—		357		—		357
Foreign currency contracts related to sales - not designated as hedges	—		564		—		564
Foreign currency contracts related to purchases - designated as hedges	—		735		—		735
Foreign currency contracts related to purchases - not designated as hedges	—		405		—		405
Deferred compensation plans	—		8,039		—		8,039
	$	29,760	$	10,100	$	—	$	39,860

Liabilities:
Foreign currency contracts related to sales - designated as hedges	$	—	$	2,145	$	—	$	2,145
Foreign currency contracts related to sales - not designated as hedges	—		65		—		65
Foreign currency contracts related to purchases - designated as hedges	—		172		—		172
Foreign currency contracts related to purchases - not designated as hedges	—		1,467		—		1,467
Deferred compensation plans	—		8,039		—		8,039
	$	—	$	11,888	$	—	$	11,888



	December 31, 2017
	Level One		Level Two		Level Three		Total
	(In thousands)
Assets:
Cash equivalents	$	24,083	$	—	$	—	$	24,083
Short term investments	—		149,608		—		149,608
Foreign currency contracts related to sales - designated as hedges	—		3,287		—		3,287
Foreign currency contracts related to sales - not designated as hedges	—		43		—		43
Foreign currency contracts related to purchases - designated as hedges	—		493		—		493
Foreign currency contracts related to purchases - not designated as hedges	—		1,038		—		1,038
Deferred compensation plans	—		6,374		—		6,374
	$	24,083	$	160,843	$	—	$	184,926

Liabilities:
Foreign currency contracts related to sales - designated as hedges	$	—	$	1,257	$	—	$	1,257
Foreign currency contracts related to sales - not designated as hedges	—		740		—		740
Foreign currency contracts related to purchases - designated as hedges	—		1,332		—		1,332
Foreign currency contracts related to purchases - not designated as hedges	—		449		—		449
Deferred compensation plans	—		6,374		—		6,374
	$	—	$	10,152	$	—	$	10,152

There were no transfers in or out of Level One, Two or Three during the nine months ended September 28, 2018.

Foreign Currency Contracts

As of September 28, 2018 and December 31, 2017, the Company had foreign currency contracts with the following notional values:



	September 28, 2018		December 31, 2017
	(In thousands)
Foreign currency contracts sold - not designated as hedges	$	37,782	$	37,143
Foreign currency contracts sold - designated as hedges	122,612		174,194
Foreign currency contracts purchased - not designated as hedges	115,311		103,975
Foreign currency contracts purchased - designated as hedges	45,293		59,055
Total foreign currency derivatives	$	320,998	$	374,367

The Company recognized the following in its Condensed Consolidated Financial Statements related to its derivative instruments:



	Three Months Ended						Nine Months Ended
	September 28, 2018			September 29, 2017			September 28, 2018			September 29, 2017
	(In thousands)
Contracts Designated as Hedges:
Foreign Currency Contracts - related to customer sales contracts:
Unrealized gain	$	2		$	798		$	1,286		$	3,515
Realized gain (loss)	42			323			(4,350		)	1,950
Foreign Currency Contracts - related to supplier purchase contracts:
Unrealized (loss) gain	(195		)	306			(465		)	945
Realized (loss) gain	(365		)	(1,022		)	1,428			(2,036		)
Unrealized gain (loss) on net investment hedges⁽¹⁾	671			(8,308		)	9,210			(27,737		)
Contracts Not Designated in a Hedge Relationship:
Foreign Currency Contracts - related to customer sales contracts:
Unrealized (loss) gain	(476		)	(289		)	1,173			(29		)
Realized (loss) gain	(596		)	(737		)	(49		)	853
Foreign Currency Contracts - related to supplier purchases contracts:
Unrealized gain (loss)	174			(104		)	(1,631		)	500
Realized gain	397			498			73			243

⁽¹⁾The unrealized gain (loss) on net investment hedges is attributable to the change in valuation of Euro denominated debt.