Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 23, 2020

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:


	Total		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Fair value measurements as of September 23, 2020:
Deferred compensation plan investments ⁽¹⁾	$	11,958	$	11,958	$	—	$	—
Interest rate swaps ⁽²⁾	(85,054)		—		(85,054)		—
Investments ⁽³⁾	2,266		—		2,266		—
Total	$	(70,830)	$	11,958	$	(82,788)	$	—

Fair value measurements as of December 25, 2019:
Deferred compensation plan investments ⁽¹⁾	$	13,517	$	13,517	$	—	$	—
Interest rate swaps ⁽²⁾	(44,670)		—		(44,670)		—
Investments ⁽³⁾	3,649		—		3,649		—
Total	$	(27,504)	$	13,517	$	(41,021)	$	—

(1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments.

(2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps.

(3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.

Fair Value Measurements, Nonrecurring

Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below:


		Significant Unobservable Inputs (Level 3)		Impairment Charges
	(In thousands)
Fair value measurements for the three quarters ended September 23, 2020:
Assets held and used ⁽¹⁾		$	2,575	$	2,519

(1)During the first and third quarters of 2020, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods