Financial Instruments

3 Months Ended

Mar. 31, 2019

Financial Instruments (Thousands of Dollars) [Abstract]

(5) Financial Instruments

The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At March 31, 2019, April 1, 2018 and December 30, 2018, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at March 31, 2019, April 1, 2018 and December 30, 2018 also include certain assets and liabilities measured at fair value (see Notes 7 and 9) as well as long-term borrowings. The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of March 31, 2019, April 1, 2018 and December 30, 2018 are as follows:

	March 31, 2019				April 1, 2018				December 30, 2018
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Cost		Value		Cost		Value		Cost		Value
6.35% Notes Due 2040	$	500,000		548,200		500,000		585,400		500,000		535,000
3.50% Notes Due 2027		500,000		479,450		500,000		468,000		500,000		457,350
5.10% Notes Due 2044		300,000		285,990		300,000		299,460		300,000		272,640
3.15% Notes Due 2021		300,000		301,440		300,000		300,480		300,000		297,600
6.60% Debentures Due 2028		109,895		129,445		109,895		128,006		109,895		123,346
Total long-term debt	$	1,709,895		1,744,525		1,709,895		1,781,346		1,709,895		1,685,936
Less: Deferred debt expenses		14,433		-		15,918		-		14,803		-
Long-term debt	$	1,695,462		1,744,525		1,693,977		1,781,346		1,695,092		1,685,936

The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 7 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement.