Annual report pursuant to Section 13 and 15(d)

Fair Value Measures

v3.20.4
Fair Value Measures
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measures assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;
Level 2 —
inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and
Level 3 —
unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions.
The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 are as follows:
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 119,378  $ —  $ —  $ 119,378 
United States government treasury bills —  234,982  —  234,982 
Short-term investments:
Money market funds 105  —  —  105 
Mutual fund shares 1,119  —  —  1,119 
Other current assets:
Derivative financial instruments —  2,597  —  2,597 
Non-current assets:
Money market funds 4,059  —  —  4,059 
Mutual fund shares 14,657  —  —  14,657 
Derivative financial instruments —  1,126  —  1,126 
Total assets measured at fair value $ 139,318  $ 238,705  $ —  $ 378,023 
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —  $ 9,841  $ —  $ 9,841 
Other long-term liabilities
Derivative financial instruments —  6,590  —  6,590 
Total liabilities measured at fair value $ —  $ 16,431  $ —  $ 16,431 
Assets and liabilities measured at fair value on a recurring basis at December 31, 2019 are as follows:
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 288,926  $ —  $ —  $ 288,926 
United States government treasury bills —  34,928  —  34,928 
Commercial paper —  33,587  —  33,587 
Short-term investments:
Mutual fund shares 1,668  —  —  1,668 
Other current assets:
Derivative financial instruments —  14,001  —  14,001 
Non-current assets:
Money market funds 1,792  —  —  1,792 
Mutual fund shares 12,172  —  —  12,172 
Derivative financial instruments —  4,159  —  4,159 
Total assets measured at fair value $ 304,558  $ 86,675  $ —  $ 391,233 
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —  $ 2,266  $ —  $ 2,266 
Other long-term liabilities:
Derivative financial instruments —  768  —  768 
Total liabilities measured at fair value $ —  $ 3,034  $ —  $ 3,034 
Non-recurring Fair Value Measurements
The Company measured the fair value of certain trademark and trade name intangible assets and certain retail store long-lived assets consisting of property, plant and equipment, and lease right-of-use assets as part of impairment testing for the year ending December 31, 2020. The inputs used to measure the fair value of these assets are primarily unobservable inputs and, as such, considered Level 3 fair value measurements. See Notes 5, 6 and 9 for discussion of 2020 impairment charges.