Fair Value Measurements (Tables)

6 Months Ended

Jun. 27, 2021

Schedule of Financial Liabilities Measured 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 27, 2021, and December 27, 2020:


(In thousands)	June 27, 2021								December 27, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities (1)
Corporate debt securities	$	110,899	$	—	$	110,899	$	—	$	130,301	$	—	$	130,301	$	—
Certificates of deposit	105,954		—		105,954		—		36,525		—		36,525		—
U.S. Treasury securities	75,528		—		75,528		—		79,503		—		79,503		—
U.S. governmental agency securities	26,153		—		26,153		—		25,171		—		25,171		—
Commercial paper	19,921		—		19,921		—		37,580		—		37,580		—
Total short-term AFS securities	$	338,455	$	—	$	338,455	$	—	$	309,080	$	—	$	309,080	$	—
Long-term AFS securities (1)
Corporate debt securities	$	162,369	$	—	$	162,369	$	—	$	135,934	$	—	$	135,934	$	—
U.S. Treasury securities	61,223		—		61,223		—		97,565		—		97,565		—
U.S. governmental agency securities	51,530		—		51,530		—		48,348		—		48,348		—
Municipal securities	12,143		—		12,143		—		4,984		—		4,984		—
Total long-term AFS securities	$	287,265	$	—	$	287,265	$	—	$	286,831	$	—	$	286,831	$	—
Liabilities:
Deferred compensation (2)(3)	$	19,754	$	19,754	$	—	$	—	$	22,245	$	22,245	$	—	$	—
Contingent consideration	$	7,450	$	—	$	—	$	7,450	$	8,431	$	—	$	—	$	8,431

(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 $51.1 million as of June 27, 2021, and $49.2 million as of December 27, 2020. 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.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents changes in the contingent consideration balances for the quarter and six months ended June 27, 2021:


	Quarter ended		Six months ended
(In thousands)	June 27, 2021		June 27, 2021
Balance at the beginning of the period (1)	$	7,728	$	8,431

Payments	(862)		(862)
Fair value adjustments (2)	584		(119)
Contingent consideration at the end of the period	$	7,450	$	7,450

(1) There were no transactions involving contingent consideration during the quarter and six months ended June 28, 2020. The contingent consideration reflected above relates to the Serial acquisition, which was completed during the third quarter of 2020.

(2) Fair value adjustments are included in General and administrative expenses in our Condensed Consolidated Statements of Operations.