Fair Value of Assets and Liabilities

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows:

Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;

Level 2—Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

Level 3—Valuations based upon one or more significant unobservable inputs.

Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy.

Investments in Equity Securities

Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy. Such securities are further detailed in Note 1, Summary of Significant Accounting Policies and Other Information.

Defined Benefit Plan Assets / Non-qualified Supplemental Retirement and Savings Plan Investments

See Note 11, Benefit Plans, for description of valuation methodologies and investment balances for defined benefit plan assets and investments related to the Company’s Non-Qualified Supplemental Retirement and Savings Plan.

There were no changes during 2018 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of December 29, 2018 and December 30, 2017, the Company held no non-financial assets or liabilities that are required to be measured at fair value on a recurring basis.

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 29, 2018:



	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,312	$	—	$	—	$	10,312
Mutual funds	9,112		—		—		9,112

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:



	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,993	$	—	$	—	$	10,993
Mutual funds	7,962		—		—		7,962

In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, trade receivables and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and trade receivables approximate their fair values. The Company’s revolving and term loan debt facilities’ fair values approximate book value at December 29, 2018 and December 30, 2017, as the rates on these borrowings are variable in nature.

The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of December 29, 2018 and December 30, 2017 were as follows:



	December 29, 2018				December 30, 2017
(in thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	133,417	$	130,888	$	139,623	$	138,294
Euro Senior Notes, Series B due 2028	108,330		103,774		113,369		111,579
USD Senior Notes, Series A due 2022	25,000		24,115		25,000		24,737
USD Senior Notes, Series B due 2027	100,000		94,458		100,000		99,992
USD Senior Notes, Series A due 2025	50,000		47,434		—		—
USD Senior Notes, Series B due 2030	125,000		114,731		—		—

The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the fiscal years ended December 31, 2016 were as follows:



	Fiscal Year Ended December 31, 2016
(in thousands)	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Goodwill	$	8,794	$	—	$	—
Other intangible assets	6,015		680		660
Total	$	14,809	$	680	$	660

Further information regarding the impairment charges of goodwill and intangible assets is provided in Note 8, Restructuring, Impairment and Other Charges, of the Notes to Consolidated Financial Statements included in this Annual Report.

The company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs. The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the fiscal year ended December 31, 2016:



(in thousands, except rates data)	Fair Value		Valuation Technique	Unobservable Inputs	Rates
Tradename	$	680	Relief from royalty	Discount rate:	18%
				Royalty rate:	1%

Customer relationships	$	—	Excess earnings	Discount rate:	18%
				Attrition rate:	5%