Schedule of Assets and Liabilities Measured to Fair Value on Recurring Basis |
The Company’s assets and liabilities that are remeasured to fair value are presented in the following table (in thousands): | | | | | | | | | | | | Fair Value | | Fair Value | Description: | | December 31, 2016 | | December 31, 2015 | Assets: | | |
| | |
| Values based on Level 1 inputs: | | | | | Deferred compensation plan assets (1) | | $ | 10,247 |
| | $ | 8,671 |
| Total Level 1 inputs | | $ | 10,247 |
| | $ | 8,671 |
| Values based on Level 2 inputs: | | | | | Deferred compensation plan assets (1) | | $ | 27,847 |
| | $ | 25,474 |
| Foreign currency forward contracts (2) | | 165 |
| | 610 |
| Total Level 2 inputs | | $ | 28,012 |
| | $ | 26,084 |
| Total Assets | | $ | 38,259 |
| | $ | 34,755 |
| Liabilities: | | |
| | |
| Values based on Level 2 inputs: | | | | | Deferred compensation plan liabilities (1) | | $ | 43,075 |
| | $ | 39,071 |
| Foreign currency forward contracts (2) | | 485 |
| | 375 |
| Interest rate swap contracts (3) | | 2,349 |
| | 5,132 |
| Total Level 2 inputs | | $ | 45,909 |
| | $ | 44,578 |
| Total Liabilities | | $ | 45,909 |
| | $ | 44,578 |
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| | (1) | The Company has a deferred compensation plan for the benefit of certain highly compensated officers, managers and other key employees (see Note 13 — Employee Benefits). The assets consist of investments in money market and mutual funds, and company-owned life insurance contracts. The money market funds consist of cash equivalents while the mutual fund investments consist of publicly-traded and quoted equity shares. The Company considers the fair value of these assets to be based on Level 1 inputs, and these assets had a fair value of $10.2 million and $8.7 million as of December 31, 2016 and 2015, respectively. The carrying amount of the life insurance contracts equals their cash surrender value. Cash surrender value represents the estimated amount that the Company would receive upon termination of the contract, which approximates fair value. The Company considers the life insurance contracts to be valued based on a Level 2 input, and these assets had a fair value of $27.8 million and $25.5 million at December 31, 2016 and 2015, respectively. The related deferred compensation plan liabilities are recorded at fair value, or the estimated amount needed to settle the liability, which the Company considers to be a Level 2 input. |
| | (2) | The Company enters into foreign currency forward exchange contracts to hedge the effects of adverse fluctuations in foreign currency exchange rates (see Note 11 — Derivatives and Hedging). Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, which the Company considers a Level 2 input. |
| | (3) | The Company has interest rate swap contracts which hedge the variability of interest payments on its borrowings (see Note 11 — Derivatives and Hedging). The fair value of the swaps is based on mark-to-market valuations provided by a third-party broker. The valuations are based on observable interest rates from recently executed market transactions and other observable market data, which the Company considers Level 2 inputs. The Company independently corroborates the reasonableness of the valuations prepared by the third-party broker through the use of an electronic quotation service. |
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