Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 29, 2019

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, pension plan assets held in trust funds, commodity hedging agreements, debt and acquisition related contingent consideration:

	December 29, 2019
	Carrying		Total		Fair Value		Fair Value		Fair Value
(in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Deferred compensation plan assets	$	42,543	$	42,543	$	42,543	$	-	$	-
Pension plan assets held in trust funds		276,085		276,085		276,085		-		-
Commodity hedging agreements		1,007		1,007		-		1,007		-
Liabilities:
Deferred compensation plan liabilities		42,543		42,543		42,543		-		-
Commodity hedging agreements		1,174		1,174		-		1,174		-
Non-public variable rate debt		307,250		307,500		-		307,500		-
Non-public fixed rate debt		374,723		383,900		-		383,900		-
Public debt securities		347,947		367,300		-		367,300		-
Acquisition related contingent consideration		446,684		446,684		-		-		446,684

	December 30, 2018
	Carrying		Total		Fair Value		Fair Value		Fair Value
(in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Deferred compensation plan assets	$	33,160	$	33,160	$	33,160	$	-	$	-
Liabilities:
Deferred compensation plan liabilities		33,160		33,160		33,160		-		-
Commodity hedging agreements		10,305		10,305		-		10,305		-
Non-public variable rate debt		372,074		372,500		-		372,500		-
Non-public fixed rate debt		274,717		261,200		-		261,200		-
Public debt securities		457,612		455,400		-		455,400		-
Acquisition related contingent consideration		382,898		382,898		-		-		382,898

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:

	Fiscal Year
(in thousands)	2019			2018
Beginning balance - Level 3 liability	$	382,898		$	381,291
Measurement period adjustments⁽¹⁾		-			813
Payment of acquisition related contingent consideration		(27,182	)		(24,683	)
Reclassification to current payables		(1,820	)		(3,290	)
Increase in fair value		92,788			28,767
Ending balance - Level 3 liability	$	446,684		$	382,898

⁽¹⁾

Measurement period adjustments relate to post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement for distribution territories acquired by the Company in April 2017 and October 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018.