Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Assets and Liabilities Measured to Fair Value on Recurring Basis

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



	December 31,
Description	2019		2018
Assets:
Values based on Level 1 inputs:
Deferred compensation plan assets (1)	$	2,277	$	8,956
Total Level 1 inputs	2,277		8,956
Values based on Level 2 inputs:
Deferred compensation plan assets (1)	73,419		57,690
Foreign currency forward contracts (2)	1,558		1,318
Total Level 2 inputs	74,977		59,008
Total Assets	$	77,254	$	67,964
Liabilities:
Values based on Level 2 inputs:
Deferred compensation plan liabilities (1)	$	79,556	$	68,570
Foreign currency forward contracts (2)	1,499		3,260
Interest rate swap contracts (3)	64,831		10,681
Senior Notes due 2025 (4)	835,384		776,160
Total Level 2 inputs	981,270		858,671
Total Liabilities	$	981,270	$	858,671

(1)

The Company has a deferred compensation plan for the benefit of certain highly compensated officers, managers and other key employees (see Note 15 — Employee Benefits). The assets consist of investments in money market funds, mutual funds and company-owned life insurance contracts. The money market funds consist of cash equivalents while the mutual fund investments consist of publicly-traded and quoted equity shares. The Company considers the fair values of these assets to be based on Level 1 inputs, and such assets had fair values of $2.3 million and $9.0 million as of December 31, 2019 and 2018, respectively. The carrying amounts of the life insurance contracts equal their cash surrender values. Cash surrender value represents the estimated amount that the Company would receive upon termination of a contract, which approximates fair

value. The Company considers life insurance contracts to be valued based on Level 2 inputs, and such assets had fair values of $73.4 million and $57.7 million at December 31, 2019 and 2018, respectively. 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 13 — 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 values of interest rate swaps are 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 by using 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. The carrying amount of the Senior Notes was $785.0 million as of December 31, 2019.