Fair Value Measurements

6 Months Ended

Jun. 28, 2020

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 June 28, 2020, and December 29, 2019:

(In thousands)	June 28, 2020								December 29, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities (1)
Corporate debt securities	$	106,271	$	—	$	106,271	$	—	$	99,126	$	—	$	99,126	$	—
U.S. Treasury securities	79,004		—		79,004		—		43,095		—		43,095		—
U.S. governmental agency securities	36,144		—		36,144		—		37,502		—		37,502		—
Commercial paper	15,981		—		15,981		—		12,561		—		12,561		—
Certificates of deposit	3,000		—		3,000		—		9,501		—		9,501		—
Total short-term AFS securities	$	240,400	$	—	$	240,400	$	—	$	201,785	$	—	$	201,785	$	—
Long-term AFS securities (1)
Corporate debt securities	$	116,341	$	—	$	116,341	$	—	$	103,737	$	—	$	103,737	$	—
U.S. Treasury securities	95,394		—		95,394		—		101,438		—		101,438		—
U.S. governmental agency securities	55,211		—		55,211		—		46,521		—		46,521		—
Total long-term AFS securities	$	266,946	$	—	$	266,946	$	—	$	251,696	$	—	$	251,696	$	—
Liabilities:
Deferred compensation (2)(3)	$	18,871	$	18,871	$	—	$	—	$	23,702	$	23,702	$	—	$	—

⁽¹⁾ 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 previously enabled 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.

⁽³⁾ The Company invests the assets associated with the deferred compensation liability in life insurance products. Our investments in life insurance products are included in Miscellaneous assets in our Condensed Consolidated Balance Sheets, and were $45.1 million as of June 28, 2020, and $46.0 million as of December 29, 2019. The fair value of these assets is measured using the net asset value per share (or its equivalent) and has not been classified in the fair value hierarchy.