Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Deferred Compensation Plan Commodity Hedging Agreements and Acquisition Related Contingent Consideration

The following tables summarize, by assets and liabilities, the carrying amounts and fair values by level of the Company’s deferred compensation plan, commodity hedging agreements, debt and acquisition related contingent consideration:

	March 31, 2019
	Carrying		Total		Fair Value		Fair Value		Fair Value
(in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Deferred compensation plan assets	$	36,755	$	36,755	$	36,755	$	-	$	-
Commodity hedging agreements		265		265		-		265		-
Liabilities:
Deferred compensation plan liabilities		36,755		36,755		36,755		-		-
Commodity hedging agreements		3,950		3,950		-		3,950		-
Nonpublic variable rate debt		406,119		406,500		-		406,500		-
Nonpublic fixed rate debt		274,701		265,200		-		265,200		-
Public debt securities		457,680		464,700		-		464,700		-
Acquisition related contingent consideration		393,007		393,007		-		-		393,007

	December 30, 2018
	Carrying		Total		Fair Value		Fair Value		Fair Value
(in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Deferred compensation plan assets	$	33,160	$	33,160	$	33,160	$	-	$	-
Liabilities:
Deferred compensation plan liabilities		33,160		33,160		33,160		-		-
Commodity hedging agreements		10,305		10,305		-		10,305		-
Nonpublic variable rate debt		372,074		372,500		-		372,500		-
Nonpublic fixed rate debt		274,717		261,200		-		261,200		-
Public debt securities		457,612		455,400		-		455,400		-
Acquisition related contingent consideration		382,898		382,898		-		-		382,898

Summary of Reconciliation of Acquisition Related Contingent Consideration

The acquisition related contingent consideration is the Company’s only Level 3 asset or liability. A reconciliation of the Level 3 activity is as follows:

	First Quarter
(in thousands)	2019			2018
Beginning balance - Level 3 liability	$	382,898		$	381,291
Measurement period adjustment⁽¹⁾		-			(1,059	)
Payment of acquisition related contingent consideration		(6,237	)		(5,882	)
Reclassification to current payables		2,300			(360	)
(Favorable)/unfavorable fair value adjustment		14,046			(5,186	)
Ending balance - Level 3 liability	$	393,007		$	368,804

⁽¹⁾

^{Measurement period adjustment relates to post-closing adjustments made in accordance with the terms and conditions of the asset purchase agreement for the distribution territories acquired by the Company in April 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018.}