Fair Value Measurements (Tables)

3 Months Ended

Apr. 04, 2021

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 April 4, 2021 and January 3, 2021:


	April 4, 2021								January 3, 2021
(In thousands)	Total Fair Value		Level 3		Level 2		Level 1		Total Fair Value		Level 3		Level 2		Level 1
Assets
Other long-term assets:
Equity investments with fair value option ("FVO")	$	9,924	$	9,924	$	—	$	—	$	9,924	$	9,924	$	—	$	—
Equity investments with readily determinable fair value	569,418		—		—		569,418		614,148		—		—		614,148
Total assets	$	579,342	$	9,924	$	—	$	569,418	$	624,072	$	9,924	$	—	$	614,148
Liabilities
Other long-term liabilities:
Interest rate swap contracts	$	452	$	—	$	452	$	—	$	600	$	—	$	600	$	—
Total liabilities	$	452	$	—	$	452	$	—	$	600	$	—	$	600	$	—

Equity Method Investment Movements

The following table summarizes movements in equity investments for the three months ended April 4, 2021. There were no internal movements to or from Level 3 from Level 1 or Level 2 for the three months ended April 4, 2021.


(In thousands)	Beginning balance as of January 3, 2021	Equity Distribution	Additional Investment	Ending balance as of April 4, 2021
Equity investments with FVO	$9,924	$—	$—	$9,924

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 April 4, 2021. Included in the table are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

2021

Assets:

Fair value

Valuation Technique

Unobservable input

Range (Weighted Average)

Other long-term assets:

Equity investments

9,924

Discounted cash flows

Discount rate
Residual value

12.5%-13% 1

7.5% 1

Total assets

9,924

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 risk appropriate 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.