Fair Value Measurements (Tables)

3 Months Ended

Mar. 29, 2020

Summary of Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table summarizes our assets and liabilities measured and recorded at fair value on a recurring basis as of March 29, 2020 and December 29, 2019:


	March 29, 2020														December 29, 2019
(In thousands)	Total Fair Value		Level 3		Level 2		Level 1		Total Fair Value		Level 3		Level 2		Level 1
Assets
Prepaid expenses and other current assets:
Derivative financial instruments (Note 11)	$	2,776	—		2,776		—		$	1,002	—		1,002		—
Other long-term assets:
Equity investments with fair value option ("FVO")	17,500		17,500		—		—		17,500		17,500		—		—
Equity investments with readily determinable fair value	178,090		—		—		178,090		173,908		—		—		173,908
Total assets	$	198,366	$	17,500	$	2,776	$	178,090	$	192,410	$	17,500	$	1,002	$	173,908
Liabilities
Accrued liabilities:
Derivative financial instruments (Note 11)	$	2,654	$	—	$	2,654	$	—	$	1,962	$	—	$	1,962	—
Other long-term liabilities:
Derivative financial instruments (Note 11)	595		—		595		—		373		—		373		—
Total liabilities	$	3,249	$	—	$	3,249	$	—	$	2,335	$	—	$	2,335	$	—

Equity Method Investment Movements

The following table summarizes movements in equity investments for the three months ended March 29, 2020. There were no internal movements to or from Level 3 from Level 1 or Level 2 for the three months ended March 29, 2020.


(In thousands)	Beginning balance as of December 29, 2019	FV Adjustment	Additional investment [See Note 9]	Ending balance as of March 29, 2020
Equity investments with FVO	$17,500	$—	$—	$17,500

Level 3 significant unobservable input sensitivity

The following table summarizes the significant unobservable inputs used in Level 3 valuation of our investments carried at fair value as of March 29, 2020. Included in the table are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

2020

Assets:

Fair value

Valuation Technique

Unobservable input

Range (Weighted Average)

Other long-term assets:

Equity investments

17,500

Discounted cash flows

Discount rate
Residual value

9.5%-13% ⁽¹⁾

7.5% - 7.75% ⁽¹⁾

Total assets

17,500

⁽¹⁾The primary unobservable inputs used in the fair value measurement of our equity investments, when using a discounted cash flow model, are the discount rate and residual value. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. We estimate the discount rate based on our projected cost of equity. We estimate the residual value based on the contracted systems in place in the years being projected. Significant increases (decreases) in the residual value in isolation would result in a significantly higher (lower) fair value measurement.