Fair Value Measurements

6 Months Ended

Jul. 01, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value is the price that would be received upon the sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. The transaction would be in the principal or most advantageous market for the asset or liability, based on assumptions that a market participant would use in pricing the asset or liability. The fair value hierarchy consists of three levels:

Level 1–quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date;

Level 2–inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3–unobservable inputs for the asset or liability.

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of July 1, 2018, and December 31, 2017:

(In thousands)	July 1, 2018								December 31, 2017
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities (1)
Corporate debt securities	$	120,485	$	—	$	120,485	$	—	$	150,107	$	—	$	150,107	$	—
U.S. Treasury securities	101,810		—		101,810		—		70,951		—		70,951		—
U.S. governmental agency securities	50,783		—		50,783		—		45,640		—		45,640		—
Commercial paper	17,520		—		17,520		—		32,591		—		32,591		—
Certificates of deposit	3,193		—		3,193		—		9,300		—		9,300		—
Total short-term AFS securities	$	293,791	$	—	$	293,791	$	—	$	308,589	$	—	$	308,589	$	—
Long-term AFS securities (1)
Corporate debt securities	$	116,225	$	—	$	116,225	$	—	$	92,004	$	—	$	92,004	$	—
U.S. Treasury securities	41,945		—		41,945		—		52,628		—		52,628		—
U.S. governmental agency securities	90,678		—		90,678		—		96,779		—		96,779		—
Total long-term AFS securities	$	248,848	$	—	$	248,848	$	—	$	241,411	$	—	$	241,411	$	—
Liabilities:
Deferred compensation (2)	$	24,826	$	24,826	$	—	$	—	$	29,526	$	29,526	$	—	$	—

⁽¹⁾ Our marketable securities, which include U.S. Treasury securities, corporate debt securities, U.S. government agency securities, municipal securities, certificates of deposit and commercial paper, are recorded at fair value (see Note 4). We classified these investments as Level 2 since the fair value is based on market observable inputs for investments with similar terms and maturities.

⁽²⁾ The deferred compensation liability, included in “Other liabilities—other” in our Condensed Consolidated Balance Sheets, consists of deferrals under The New York Times Company Deferred Executive Compensation Plan (the “DEC”), which enables certain eligible executives to elect to defer a portion of their compensation on a pre-tax basis. The deferred amounts are invested at the executives’ option in various mutual funds. The fair value of deferred compensation is based on the mutual fund investments elected by the executives and on quoted prices in active markets for identical assets. Participation in the DEC was frozen effective December 31, 2015.

Financial Instruments Disclosed, But Not Reported, at Fair Value

The carrying value of our long-term debt was approximately $245 million as of July 1, 2018, and approximately $243 million as of December 31, 2017. The fair value of our long-term debt was approximately $268 million and $279 million as of July 1, 2018, and December 31, 2017, respectively. We estimate the fair value of our debt utilizing market quotations for debt that have quoted prices in active markets. Since our debt does not trade on a daily basis in an active market, the fair value estimates are based on market observable inputs based on borrowing rates currently available for debt with similar terms and average maturities (Level 2).