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Fair Value of Assets and Liabilities
6 Months Ended
Jun. 27, 2020
Text Block [Abstract]  
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities
As of June 27, 2020, the Company held certain financial assets and liabilities that are required to be measured at fair value on a recurring basis. These consisted of the Company’s derivative instruments related to forward foreign exchange derivative contracts, cross-currency swap derivative contracts and deferred compensation plan liabilities. The fair values of forward foreign exchange derivative contracts are determined using the cash flows of the forward contracts, discount rates to account for the passage of time and current foreign exchange market data which are all based on inputs readily available in public markets and are categorized as Level 2. The fair values of cross-currency swap derivative contracts are determined using the cash flows of the swap contracts, discount rates to account for the passage of time, current foreign exchange and interest rate market data and credit risk, which are all based on inputs readily available in public markets and are categorized as Level 2. The fair value of deferred compensation plans is based on readily available current market data and is categorized as Level 2. The Company’s defined benefit pension plan investments are not required to be measured at fair value on a quarterly recurring basis.
There were no changes during the quarter and six months ended June 27, 2020 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of and during the quarter and six months ended June 27, 2020, the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis.
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis.
 
Assets (Liabilities) at Fair Value as of
June 27, 2020
 
Total
 
Quoted Prices In
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Forward foreign exchange contracts - assets
$
7,157

 
$

 
$
7,157

 
$

Cross-currency swap contracts - assets
18,410

 

 
18,410

 

Forward foreign exchange contracts - liabilities
(2,473
)
 

 
(2,473
)
 

 
23,094

 

 
23,094

 

Deferred compensation plan liability
(18,907
)
 

 
(18,907
)
 

Total
$
4,187

 
$

 
$
4,187

 
$

 
 
Assets (Liabilities) at Fair Value as of
December 28, 2019
 
Total
 
Quoted Prices In
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Forward foreign exchange contracts - assets
$
8,030

 
$

 
$
8,030

 
$

Cross-currency swap contracts - assets
3,901

 

 
3,901

 

Forward foreign exchange contracts - liabilities
(3,393
)
 

 
(3,393
)
 

 
8,538

 

 
8,538

 

Deferred compensation plan liability
(31,221
)
 

 
(31,221
)
 

Total
$
(22,683
)
 
$

 
$
(22,683
)
 
$


Fair Value of Financial Instruments
The carrying amounts of cash and cash equivalents, trade accounts receivable, notes receivable and accounts payable approximated fair value as of June 27, 2020 and December 28, 2019. The carrying amount of trade accounts receivable included allowance for doubtful accounts, chargebacks and other deductions of $48,197 and $33,228 as of June 27, 2020 and December 28, 2019, respectively. The fair value of debt, which is classified as a Level 2 liability, was $4,175,552 and $3,560,623 as of June 27, 2020 and December 28, 2019, respectively. Debt had a carrying value of $4,134,413 and $3,394,761 as of June 27, 2020 and December 28, 2019, respectively. The fair values were estimated using quoted market prices as provided in secondary markets, which consider the Company’s credit risk and market related conditions. The carrying amount of the Company’s notes payable, which is classified as a Level 2 liability, approximated fair value as of June 27, 2020 and December 28, 2019, primarily due to the short-term nature of these instruments.