Fair Value Measurements
Our assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 — quoted market prices in active markets for identical assets and liabilities; Level 2 — observable market-based inputs or unobservable inputs that are corroborated by market data; and Level 3 — unobservable inputs that are not corroborated by market data.
As of December 28, 2013, our assets and liabilities measured at fair value on a recurring basis are categorized in the table below:
|
| | | | | | | | | | | | | | | |
| December 28, 2013 |
| Total | | Level 1 | | Level 2 | | Level 3 |
Assets: | | | | | | | |
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit | $ | 50,735 |
| | $ | 50,735 |
| | $ | — |
| | $ | — |
|
Marketable trading securities (a) | 53,856 |
| | 53,856 |
| | — |
| | — |
|
Derivative assets | 2,942 |
| | — |
| | 2,942 |
| | — |
|
Total assets at fair value | $ | 107,533 |
| | $ | 104,591 |
| | $ | 2,942 |
| | $ | — |
|
| | | | | | | |
Liabilities: | | | | | | | |
Derivative liabilities | $ | 8,887 |
| | $ | — |
| | $ | 8,887 |
| | $ | — |
|
Contingent consideration | 3,650 |
|
| — |
|
| — |
|
| 3,650 |
|
Total liabilities at fair value | $ | 12,537 |
| | $ | — |
| | $ | 8,887 |
| | $ | 3,650 |
|
(a) Included in other current assets in our consolidated balance sheet.
As of December 29, 2012, our assets and liabilities measured at fair value on a recurring basis are categorized in the table below:
|
| | | | | | | | | | | | | | | |
| December 29, 2012 |
| Total |
| Level 1 |
| Level 2 |
| Level 3 |
Assets: |
|
|
|
|
|
|
|
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit | $ | 189,381 |
| | $ | 189,381 |
| | $ | — |
| | $ | — |
|
Marketable trading securities (a) | 46,938 |
| | 46,938 |
| | — |
| | — |
|
Derivative assets | 2,897 |
| | — |
| | 2,897 |
| | — |
|
Total assets at fair value | $ | 239,216 |
| | $ | 236,319 |
| | $ | 2,897 |
| | $ | — |
|
| | | | | | | |
Liabilities: | | | | | | | |
Derivative liabilities | $ | 3,776 |
| | $ | — |
| | $ | 3,776 |
| | $ | — |
|
Total liabilities at fair value | $ | 3,776 |
| | $ | — |
| | $ | 3,776 |
| | $ | — |
|
(a) Included in other current assets in our consolidated balance sheet.
The fair value of the cash equivalents approximated cost and the gain or loss on the marketable trading securities was recognized in the consolidated statement of income to reflect these investments at fair value.
Our senior unsecured notes due in 2022 and 2017 are stated at amortized cost, and their respective fair values were determined based on Level 2 criteria. The fair values and carrying values of these notes are shown in the table below:
|
| | | | | | | | | | | | | | | | | | | |
| December 28, 2013 |
|
| | Fair Value |
| Carrying Value | | Total | | Level 1 | | Level 2 | | Level 3 |
Liabilities: | | | | | | | | | |
Senior unsecured notes, 5.25% due 2017 | $ | 300,000 |
| | $ | 318,000 |
| | $ | — |
| | $ | 318,000 |
| | $ | — |
|
Senior unsecured notes, 5.00% due 2022 | 298,454 |
| | 301,200 |
| | — |
| | 301,200 |
| | — |
|
| $ | 598,454 |
| | $ | 619,200 |
| | $ | — |
| | $ | 619,200 |
| | $ | — |
|
|
| | | | | | | | | | | | | | | | | | | |
| December 29, 2012 |
| | | Fair Value |
| Carrying Value | | Total | | Level 1 | | Level 2 | | Level 3 |
Liabilities: | | | | | | | | | |
Senior unsecured notes, 5.25% due 2017 | $ | 300,000 |
| | $ | 326,000 |
| | $ | — |
| | $ | 326,000 |
| | $ | — |
|
Senior unsecured notes, 5.00% due 2022 | 298,275 |
| | 307,000 |
| | — |
| | 307,000 |
| | — |
|
| $ | 598,275 |
| | $ | 633,000 |
| | $ | — |
| | $ | 633,000 |
| | $ | — |
|
The carrying amounts of our trade accounts receivable, accounts payable and other accrued expenses approximate fair value because of the short maturity of these items. Our North American, European and Asia-Pacific revolving trade accounts receivable-backed financing programs bear interest at variable rates based on designated commercial paper rates and local reference rates, respectively, plus a predetermined fixed margin. The interest rates of our revolving unsecured credit facilities and other debt are dependent upon the local short-term bank indicator rate for a particular currency, which also resets regularly. The carrying amounts of all these facilities approximate their fair value because of the revolving nature of the borrowings and because the all-in rate (consisting of variable rates and fixed margin) adjusts regularly to reflect current market rates with appropriate consideration for our credit profile.
