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Fair Value Measurements
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements

8)

Fair Value Measurements

In accordance with the provisions of fair value accounting, a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model.

The fair value measurement guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

 

Level 1

Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

 

Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or securities or derivative contracts that are valued using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.

 

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company categorizes such assets and liabilities based on the lowest level input that is significant to the fair value measurement

in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset.

Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2021, are summarized as follows:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Description

 

December 31,

2021

 

 

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

55.4

 

 

$

55.4

 

 

$

—

 

 

$

—

 

Commercial paper

 

 

0.1

 

 

 

—

 

 

 

0.1

 

 

 

—

 

U.S. treasury obligations

 

 

175.0

 

 

 

—

 

 

 

175.0

 

 

 

—

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits and certificates of deposit

 

 

22.0

 

 

 

—

 

 

 

22.0

 

 

 

—

 

Bankers' acceptance drafts

 

 

0.5

 

 

 

—

 

 

 

0.5

 

 

 

—

 

Commercial paper

 

 

41.8

 

 

 

—

 

 

 

41.8

 

 

 

—

 

U.S. treasury obligations

 

 

11.5

 

 

 

—

 

 

 

11.5

 

 

 

—

 

U.S. agency obligations

 

 

0.6

 

 

 

—

 

 

 

0.6

 

 

 

—

 

Group insurance contracts

 

 

6.2

 

 

 

—

 

 

 

6.2

 

 

 

—

 

Derivatives-foreign exchange forward contracts

 

 

3.5

 

 

 

—

 

 

 

3.5

 

 

 

—

 

Derivatives-foreign currency options

 

 

3.4

 

 

 

—

 

 

 

3.4

 

 

 

—

 

Derivatives-interest rate hedge-non-current

 

 

8.7

 

 

 

—

 

 

 

8.7

 

 

 

—

 

Funds in investments and other assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Israeli pension assets

 

 

20.3

 

 

 

—

 

 

 

20.3

 

 

 

—

 

Deferred compensation plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds and exchange traded funds

 

 

1.6

 

 

 

—

 

 

 

1.6

 

 

 

—

 

Total assets

 

$

350.6

 

 

$

55.4

 

 

$

295.2

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives – forward exchange contracts

 

$

0.6

 

 

$

—

 

 

$

0.6

 

 

$

—

 

Derivatives – interest rate hedge – non-current

 

 

5.0

 

 

 

—

 

 

 

5.0

 

 

 

—

 

Total liabilities

 

$

5.6

 

 

$

—

 

 

$

5.6

 

 

$

—

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

230.5

 

 

$

55.4

 

 

$

175.1

 

 

$

—

 

Short-term investments

 

 

76.4

 

 

 

—

 

 

 

76.4

 

 

 

—

 

Other current assets

 

 

6.9

 

 

 

—

 

 

 

6.9

 

 

 

—

 

Total current assets

 

$

313.8

 

 

$

55.4

 

 

$

258.4

 

 

$

—

 

Long-term investments

 

$

6.2

 

 

$

—

 

 

$

6.2

 

 

$

—

 

Other assets

 

 

30.6

 

 

 

—

 

 

 

30.6

 

 

 

—

 

Total long-term assets

 

$

36.8

 

 

$

—

 

 

$

36.8

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

0.6

 

 

$

—

 

 

$

0.6

 

 

$

—

 

Other liabilities

 

$

5.0

 

 

$

—

 

 

$

5.0

 

 

$

—

 

 

 

Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2020, are summarized as follows:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Description

 

December 31,

2020

 

 

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1.3

 

 

$

1.3

 

 

$

—

 

 

$

—

 

Commercial paper

 

 

0.3

 

 

 

—

 

 

 

0.3

 

 

 

—

 

U.S. treasury obligations

 

 

62.1

 

 

 

—

 

 

 

62.1

 

 

 

—

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits and certificates of deposit

 

 

0.7

 

 

 

—

 

 

 

0.7

 

 

 

—

 

Bankers' acceptance drafts

 

 

3.8

 

 

 

—

 

 

 

3.8

 

 

 

—

 

U.S. treasury obligations

 

 

223.2

 

 

 

—

 

 

 

223.2

 

 

 

—

 

Group insurance contracts

 

 

6.5

 

 

 

—

 

 

 

6.5

 

 

 

—

 

Funds in investments and other assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Israeli pension assets

 

 

18.8

 

 

 

—

 

 

 

18.8

 

 

 

—

 

Deferred compensation plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds and exchange traded funds

 

 

1.7

 

 

 

—

 

 

 

1.7

 

 

 

—

 

Total assets

 

$

318.4

 

 

$

1.3

 

 

$

317.1

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives – forward exchange contracts

 

$

6.5

 

 

$

—

 

 

$

6.5

 

 

$

—

 

Derivatives – interest rate hedge – non-current

 

 

14.0

 

 

 

—

 

 

 

14.0

 

 

 

—

 

Total liabilities

 

$

20.5

 

 

$

—

 

 

$

20.5

 

 

$

—

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

63.7

 

 

$

1.3

 

 

$

62.4

 

 

$

—

 

Short-term investments

 

 

227.7

 

 

 

—

 

 

 

227.7

 

 

 

—

 

Total current assets

 

$

291.4

 

 

$

1.3

 

 

$

290.1

 

 

$

—

 

Long-term investments

 

$

6.5

 

 

$

—

 

 

$

6.5

 

 

$

—

 

Other assets

 

 

20.5

 

 

 

—

 

 

 

20.5

 

 

 

—

 

Total long-term assets

 

$

27.0

 

 

$

—

 

 

$

27.0

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

6.5

 

 

$

—

 

 

$

6.5

 

 

$

—

 

Other liabilities

 

$

14.0

 

 

$

—

 

 

$

14.0

 

 

$

—

 

 

Money Market Funds

Money market funds are cash and cash equivalents and are classified within Level 1 of the fair value hierarchy.

Available-For-Sale Investments

The Company measures its debt and equity investments at fair value. The Company’s available-for-sale investments are classified within Level 2 of the fair value hierarchy.

Israeli Pension Assets

Israeli pension assets represent investments in mutual funds, government securities and other time deposits. These investments are set aside for the retirement benefit of the employees of the Company’s Israeli subsidiaries. These funds are classified within Level 2 of the fair value hierarchy.

Derivatives

As a result of the Company’s global operating activities, the Company is exposed to market risks from changes in foreign currency exchange rates and variable interest rates, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes its risks from foreign currency exchange rate and interest rate fluctuations through the use of derivative financial instruments. The principal market in which the Company executes its foreign currency contracts, options and interest rate swaps is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. The foreign exchange forward contracts, options and interest rate hedge are valued using broker quotations, or market transactions and are classified within Level 2 of the fair value hierarchy.