| Schedule of assets and liabilities that are remeasured to fair value |
The following table presents the fair value of certain financial assets and liabilities (in thousands): | | | | | | | | | Description: | June 30,
2019 | | December 31,
2018 | Assets: | |
| | |
| Values based on Level 1 inputs: | | | | Deferred compensation plan assets (1) | $ | 8,856 |
| | $ | 8,956 |
| Total Level 1 inputs | 8,856 |
| | 8,956 |
| Values based on Level 2 inputs: | | | | Deferred compensation plan assets (1) | 61,566 |
| | 57,690 |
| Foreign currency forward contracts (2) | 76 |
| | 1,318 |
| Total Level 2 inputs | 61,642 |
| | 59,008 |
| Total Assets | $ | 70,498 |
| | $ | 67,964 |
| Liabilities: | |
| | |
| Values based on Level 2 inputs: | | | | Deferred compensation plan liabilities (1) | $ | 74,013 |
| | $ | 68,570 |
| Foreign currency forward contracts (2) | 527 |
| | 3,260 |
| Interest rate swap contracts (3) | 64,591 |
| | 10,681 |
| Senior Notes due 2025 (4) | 826,304 |
| | 776,160 |
| Total Level 2 inputs | 965,435 |
| | 858,671 |
| Total Liabilities | $ | 965,435 |
| | $ | 858,671 |
|
| | (1) | The Company has a deferred compensation plan for the benefit of certain highly compensated officers, managers and other key employees. The assets consist of investments in money market funds, mutual funds and company-owned life insurance contracts, which are valued based on Level 1 or Level 2 inputs. 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 9 — Derivatives and Hedging). Valuation of these contracts is based on observable foreign currency exchange rates in active markets, which the Company considers to be a Level 2 input. |
| | (3) | The Company has interest rate swap contracts that hedge the risk of variability from interest payments on its borrowings (see Note 6 — Debt). The fair value of interest rate swaps is based on mark-to-market valuations prepared by a third-party broker. Those valuations are based on observable interest rates from recently executed market transactions and other observable market data, which the Company considers to be 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. |
(4) As discussed in Note 6 — Debt, the Company has $800.0 million of principal amount fixed-rate Senior Notes due in 2025. The estimated fair value of the notes was derived from quoted market prices provided by an independent dealer, which the Company considers to be a Level 2 input.
|