Fair Values of Financial Instruments (Tables)

9 Months Ended

Oct. 01, 2017

Deferred Compensation Plan Commodity Hedging Agreements and Acquisition Related Contingent Consideration

The following tables summarize, by assets and liabilities, the carrying amounts and fair values by level of the Company’s deferred compensation plan, commodity hedging agreements, debt and acquisition related contingent consideration:

	October 1, 2017
	Carrying		Total		Fair Value		Fair Value		Fair Value
(in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Deferred compensation plan assets	$	30,968	$	30,968	$	30,968	$	-	$	-
Commodity hedging agreements		3,832		3,832		-		3,832		-
Liabilities:
Deferred compensation plan liabilities		30,968		30,968		30,968		-		-
Commodity hedging agreements		2		2		-		2		-
Non-public variable rate debt		546,354		547,000		-		547,000		-
Non-public fixed rate debt		124,814		126,000		-		126,000		-
Public debt securities		456,679		482,600		-		482,600		-
Acquisition related contingent consideration		308,933		308,933		-		-		308,933

	January 1, 2017
	Carrying		Total		Fair Value		Fair Value		Fair Value
(in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Deferred compensation plan assets	$	24,903	$	24,903	$	24,903	$	-	$	-
Commodity hedging agreements		1,289		1,289		-		1,289		-
Liabilities:
Deferred compensation plan liabilities		24,903		24,903		24,903		-		-
Non-public variable rate debt		451,222		452,000		-		452,000		-
Public debt securities		456,032		475,800		-		475,800		-
Acquisition related contingent consideration		253,437		253,437		-		-		253,437

Summary of Reconciliation of Acquisition Related Contingent Consideration

The acquisition related contingent consideration is the Company’s only Level 3 asset or liability. A reconciliation of the Level 3 activity is as follows:

	Third Quarter						First Three Quarters
(in thousands)	2017			2016			2017			2016
Opening balance - Level 3 liability	$	319,102		$	228,768		$	253,437		$	136,570
Increase due to acquisitions		-			-			46,086			68,039
Payments/current payables		(4,944	)		(2,995	)		(13,730	)		(12,261	)
(Favorable)/unfavorable fair value adjustment		(5,225	)		(7,365	)		23,140			26,060
Ending balance - Level 3 liability	$	308,933		$	218,408		$	308,933		$	218,408