FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 61
Table of Contents
Note 12 - Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Depending on the nature of the asset or liability,
various techniques and assumptions can be used to estimate fair value. The definition of the fair value hierarchy is as
follows:
Level 1 – Quoted prices in active markets for identical assets and liabilities.
Level 2 – Observable inputs other than quoted prices in active markets for similar assets and liabilities.
Level 3 – Inputs for which significant valuation assumptions are unobservable in a market and therefore value is
based on the best available data, some of which is internally developed and considers risk premiums that a market
participant would require.
Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable
market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation
hierarchy.
The following table presents the fair values and classification of our financial assets and liabilities measured on a
recurring basis, all of which are classified as Level 2:
Foreign currency contracts
Foreign currency contracts
Foreign currency contracts
Foreign currency contracts
Balance Sheets location
Other current assets
Other assets
Total assets
Accrued liabilities and other
Other long-term liabilities
Total liabilities
$
$
$
$
October 2,
2021
551
104
655
1,715
537
2,252
$
$
$
$
October 3,
2020
2,862
169
3,031
414
—
414
Our only financial instrument for which the carrying value differs from its fair value is long-term debt. At October 2,
2021, the fair value of long-term debt was $916,764 compared to its carrying value of $910,166. The fair value of longterm debt is classified as Level 2 within the fair value hierarchy and was estimated based on quoted market prices.
Property, plant and equipment, ROU assets and intangible assets have been measured at fair values on a
nonrecurring basis using future discounted cash flows and other observable inputs (Level 3) and are not included in
the fair value tables above. The impairment losses of $1,500 and $37,839 in 2021 and 2020, respectively, are
recorded as a result of these measurements are described in Note 6, Property, Plant and Equipment, Note 7, Leases
and Note 8, Goodwill and Intangible Assets.
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