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FAIR VALUE

9 Months Ended

Sep. 30, 2023

NOTE 14 - FAIR VALUE

The following table provides a summary of assets and liabilities as of September 30, 2023, measured at fair value on a recurring basis:


					Quoted Prices in
					Active Markets for
					Identical Assets or			Significant Other			Significant
		Balance as of			Liabilities			Observable Inputs			Unobservable
Description		September 30, 2023			(Level 1)			(Level 2)			Inputs (Level 3)
Assets:
Foreign exchange contracts		$	3,236		$	—		$	3,236		$	—
Net investment contracts			291			—			291			—
Interest rate swap agreements			3,946			—			3,946			—
Forward starting swap agreements			24,877			—			24,877			—
Pension surplus			48,093			48,093			—			—
Total assets		$	80,443		$	48,093		$	32,350		$	—
Liabilities:
Foreign exchange contracts		$	2,948		$	—		$	2,948		$	—
Deferred compensation			39,136			—			39,136			—
Total liabilities		$	42,084		$	—		$	42,084		$	—

The following table provides a summary of assets and liabilities as of December 31, 2022, measured at fair value on a recurring basis:


					Quoted Prices in
					Active Markets for
					Identical Assets or			Significant Other			Significant
		Balance as of			Liabilities			Observable Inputs			Unobservable
Description		December 31, 2022			(Level 1)			(Level 2)			Inputs (Level 3)
Assets:
Foreign exchange contracts		$	3,815		$	—		$	3,815		$	—
Commodity contracts			181			—			181			—
Forward starting swap agreements			19,291			—			19,291			—
Pension Surplus			56,418			56,418			—			—
Total assets		$	79,705		$	56,418		$	23,287		$	—
Liabilities:
Foreign exchange contracts		$	1,528		$	—		$	1,528		$	—
Net investment contracts			2,229			—			2,229			—
Commodity contracts			33			—			33			—
Deferred compensation			39,090			—			39,090			—
Total liabilities		$	42,880		$	—		$	42,880		$	—

The fair value of the Company’s pension surplus assets are based on quoted market prices in active markets and are included in the Level 1 fair value hierarchy. The pension surplus assets are invested in money market and short-term duration bond funds at September 30, 2023.

The Company’s derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts, forward starting swap agreements, net investment contracts and interest rate swap agreements using Level 2 inputs based on observable spot and forward rates in active markets.

The deferred compensation liability is the Company’s obligation under its executive deferred compensation plan. The Company measures the fair value of the liability using the market values of the participants’ underlying investment fund elections.

The fair value of Cash and cash equivalents, Marketable securities, Accounts receivable, Short-term debt excluding the current portion of long-term debt and Trade accounts payable approximated book value due to the short-term nature of these instruments at both September 30, 2023 and December 31, 2022.

The Company has various financial instruments, including cash and cash equivalents, short and long-term debt and forward contracts. While these financial instruments are subject to concentrations of credit risk, the Company has minimized this risk by entering into arrangements with a number of major banks and financial institutions and investing in several high-quality instruments. The Company does not expect any counterparties to fail to meet their obligations.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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