Fair Value Measurements - (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table presents, for each of the fair value hierarchy levels required under ASC 820-10, the company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018:



	September 30, 2019								December 31, 2018
	Fair Value Hierarchy								Fair Value Hierarchy
(in thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Deferred compensation trusts⁽¹⁾	$	24,288	$	24,288	$	—	$	—	$	26,690	$	26,690	$	—	$	—
Derivative assets⁽²⁾
Foreign currency contracts	9,942		—		9,942		—		17,346		—		17,346		—
Commodity contracts	2,421		—		2,421		—		—		—		—		—

Liabilities:
Derivative liabilities⁽²⁾
Foreign currency contracts	$	15,386	$	—	$	15,386	$	—	$	18,342	$	—	$	18,342	$	—
Commodity contracts	1,674		—		1,674		—		—		—		—		—

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(1)	Consists of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange.

(2)

See Note 9 for the classification of foreign currency and commodity contracts on the Condensed Consolidated Balance Sheet. Foreign currency and commodity contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows.

Schedule of carrying values and estimated fair values of financial instruments not required to be measured at fair value

The carrying values and estimated fair values of the company’s financial instruments that are not required to be measured at fair value in the Condensed Consolidated Balance Sheet are as follows:



		September 30, 2019				December 31, 2018
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Cash⁽¹⁾	Level 1	$	1,017,737	$	1,017,737	$	1,091,868	$	1,091,868
Cash equivalents⁽²⁾	Level 2	787,367		787,367		672,878		672,878
Marketable securities, current⁽³⁾	Level 2	47,873		47,873		214,828		214,828
Notes receivable, including noncurrent portion⁽⁴⁾	Level 3	38,906		38,906		32,645		32,645
Liabilities:
1.750% Senior Notes⁽⁵⁾	Level 2	$	545,062	$	557,378	$	569,372	$	589,864
3.5% Senior Notes⁽⁵⁾	Level 2	495,000		499,815		494,280		484,790
4.250% Senior Notes⁽⁵⁾	Level 2	594,345		604,038		593,871		583,200
Other borrowings, including noncurrent portion⁽⁶⁾	Level 2	47,737		47,737		30,929		30,929

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(1)	Cash consists of bank deposits. Carrying amounts approximate fair value.


(2)	Cash equivalents consist of held-to-maturity time deposits with maturities of three months or less at the date of purchase. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments.


(3)	Marketable securities, current consist of held-to-maturity time deposits with original maturities greater than three months that will mature within one year. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value.


(4)	Notes receivable are carried at net realizable value which approximates fair value. Factors considered by the company in determining the fair value include the credit worthiness of the borrower, current interest rates, the term of the note and any collateral pledged as security. Notes receivable are periodically assessed for impairment.


(5)	The fair value of the 1.750% Senior Notes, 3.5% Senior Notes and 4.250% Senior Notes was estimated based on quoted market prices for similar issues.

(6)

Other borrowings primarily represent bank loans and other financing arrangements which mature within one year. The carrying amount of borrowings under these arrangements approximates fair value because of the short-term maturity.