Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of assets and liabilities that are remeasured to fair value

The following table presents the fair value of certain financial assets and liabilities (in thousands):



Description:	March 31, 2019		December 31, 2018
Assets:
Values based on Level 1 inputs:
Deferred compensation plan assets (1)	$	10,537	$	8,956
Total Level 1 inputs	10,537		8,956
Values based on Level 2 inputs:
Deferred compensation plan assets (1)	62,678		57,690
Foreign currency forward contracts (2)	196		1,318
Total Level 2 inputs	62,874		59,008
Total Assets	$	73,411	$	67,964
Liabilities:
Values based on Level 2 inputs:
Deferred compensation plan liabilities (1)	$	71,210	$	68,570
Foreign currency forward contracts (2)	550		3,260
Interest rate swap contracts (3)	30,618		10,681
Senior Notes due 2025 (4)	808,736		776,160
Total Level 2 inputs	911,114		858,671
Total Liabilities	$	911,114	$	858,671

(1)

The Company has a deferred compensation plan for the benefit of certain highly compensated officers, managers and other key employees. The assets consist of investments in money market funds, mutual funds and company-owned life insurance contracts, which are valued based on Level 1 or Level 2 inputs. The related deferred compensation plan liabilities are recorded at fair value, or the estimated amount needed to settle the liability, which the Company considers to be a Level 2 input.


(2)	The Company enters into foreign currency forward exchange contracts to hedge the effects of adverse fluctuations in foreign currency exchange rates (see Note 9 — Derivatives and Hedging). Valuation of these contracts is based on observable foreign currency exchange rates in active markets, which the Company considers to be a Level 2 input.

(3)

The Company has interest rate swap contracts that hedge the risk of variability from interest payments on its borrowings (see Note 6 — Debt). The fair value of interest rate swaps is based on mark-to-market valuations prepared by a third-party broker. Those valuations are based on observable interest rates from recently executed market transactions and other observable market data, which the Company considers to be Level 2 inputs. The Company independently corroborates the reasonableness of the valuations prepared by the third-party broker through the use of an electronic quotation service.

(4)

As discussed in Note 6 — Debt, the Company has $800.0 million of principal amount fixed-rate Senior Notes due in 2025. The estimated fair value of the notes was derived from quoted market prices provided by an independent dealer, which the Company considers to be a Level 2 input.