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FAIR VALUE MEASUREMENTS
 3 Months Ended
Apr. 03, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.
ASC 820, Fair Value Measurement and Disclosures (“ASC 820”), establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows:
•Level 1 — Quoted prices in active markets for identical assets or liabilities.
•Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
•Level 3 — Unobservable inputs based on the Company’s assumptions.
ASC 820 requires the use of observable market data if such data is available without undue cost and effort.
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of April 3, 2021 (in thousands):
 Fair Value at April 3, 2021
 Level 1Level 2Level 3Total
Assets:    
Forward contracts$— $2,648 $— $2,648 
Total$— $2,648 $— $2,648 
Liabilities:    
Contingent consideration$— $— $1,976 $1,976 
Forward contracts— 644 — 644 
Total$— $644 $1,976 $2,620 
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 2, 2021 (in thousands):
 Fair Value at January 2, 2021
 Level 1Level 2Level 3Total
Assets:    
Forward contracts$— $393 $— $393 
Deferred compensation plan assets:    
Investment in publicly traded mutual funds6,257 — — 6,257 
Total$6,257 $393 $— $6,650 
Liabilities:    
Contingent consideration$— $— $1,924 $1,924 
Forward contracts— 2,299 — 2,299 
Total$— $2,299 $1,924 $4,223 
The Company's deferred compensation plan was terminated during the First Quarter, with the final distributions taking place in the second quarter of fiscal year 2021. The deferred compensation plan assets at January 2, 2021 were recorded in intangible and other assets-net in the Company’s condensed consolidated balance sheets and the fair values were based on quoted prices.
The fair values of the Company’s forward contracts are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. See Note 10—Derivatives and Risk Management, for additional disclosures about the forward contracts.
As of April 3, 2021, the fair value of the Company's debt approximated its carrying amount. The fair value of debt was obtained using observable market inputs.
The fair value of trade names are measured on a non-recurring basis using Level 3 inputs, including forecasted cash flows, discount rates and implied royalty rates. No trade name impairment was recorded during the First Quarter.
During the First Quarter, operating lease right-of-use ("ROU") assets with a carrying amount of $6.0 million and property, plant and equipment-net with a carrying amount of $1.6 million related to retail store leasehold improvements, fixturing and shop-in-shops were written down to a fair value of $2.3 million and $0.6 million, respectively, resulting in impairment charges of $4.7 million.
The fair values of operating lease ROU assets and fixed assets related to retail stores were determined using Level 3 inputs, including forecasted cash flows and discount rates. Of the $4.7 million impairment expense, $2.3 million, $1.8 million, and $0.4 million was recorded in SG&A in the Americas, Europe and Asia segments, respectively, and $0.2 million was recorded in restructuring charges in the Europe segment.