Fair Value Measurements

3 Months Ended

Apr. 01, 2023

FAIR VALUE MEASUREMENTS

The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):


	April 1, 2023						December 31, 2022
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Measured at fair value on a recurring basis:
Assets:
Investment securities	$	0.1	$	—	$	—	$	0.1	$	—	$	—
Foreign currency forward contracts	—		3.4		—		—		4.2		—



Interest rate swap agreements	—		24.9		—		—		50.5		—

Total assets	$	0.1	$	28.3	$	—	$	0.1	$	54.7	$	—

Liabilities:
Cross-currency swap	$	—	$	111.3	$	—	$	—	$	96.1	$	—
Foreign currency forward contracts	—		3.1		—		—		5.2		—


Total liabilities	$	—	$	114.4	$	—	$	—	$	101.3	$	—

There were no transfers within Level 3 fair value measurements during the three months ended April 1, 2023 or the

year ended December 31, 2022.

Non-recurring Fair Value Measurements

The non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the reporting period.

Fixed Rate Long-term Debt

Our fixed rate long-term debt consisted of the following (in millions):


	April 1, 2023		December 31, 2022
	Level 1			Level 1
Public Bonds
Carrying value (excluding discount)	$	2,544.4		$	2,544.4
Fair value	$	2,315.0		$	2,225.4

The fair values of our public bonds for all periods were based on quoted market prices. The fair values of our private placement note for all periods were based on interest rates offered for borrowings of a similar nature and remaining maturities.

The carrying amounts of our other financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable, short-term debt, revolving credit agreements, and variable rate long-term debt, approximate their fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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