ÂÒÂ×°ÍÊ¿

Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.20.2
FAIR VALUE MEASUREMENTS
 3 Months Ended
Jun. 27, 2020
Fair Value Disclosures [Abstract] Ìý
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows:
•Level 1 — Quoted prices in active markets for identical assets or liabilities.
•Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable
data through corroboration with observable market data. Inputs would normally be (i)Ìýquoted prices in active markets for similar assets or liabilities, (ii)Ìýquoted prices in inactive markets for identical or similar assets or liabilities, or (iii)Ìýinformation derived from or corroborated by observable market data.
•Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be ÂÒÂ×°Íʿ’s own data and judgments about assumptions that market participants would use in pricing the asset or liability.
The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis:
Ìý Total Fair Value
Fair Value Measurement Using (a)
(In thousands) LevelÌý1 LevelÌý2 LevelÌý3
June 2020
Financial assets:
Cash equivalents:
Money market funds $ 1,476,533Ìý Ìý $ 1,476,533Ìý Ìý $ —Ìý Ìý $ —Ìý Ìý
Time deposits 373,440Ìý Ìý 373,440Ìý Ìý —Ìý Ìý —Ìý Ìý
Short-term investments:
Managed income fund 500,000Ìý Ìý 500,000Ìý Ìý —Ìý Ìý —Ìý Ìý
Time deposits 200,000Ìý Ìý 200,000Ìý Ìý —Ìý Ìý —Ìý Ìý
Derivative financial instruments 68,585Ìý Ìý —Ìý Ìý 68,585Ìý Ìý —Ìý Ìý
Deferred compensation 120,359Ìý Ìý 120,359Ìý Ìý —Ìý Ìý —Ìý Ìý
Financial liabilities:
Derivative financial instruments 15,631Ìý Ìý —Ìý Ìý 15,631Ìý Ìý —Ìý Ìý
Deferred compensation 126,326Ìý Ìý —Ìý Ìý 126,326Ìý Ìý —Ìý Ìý
Total Fair Value
Fair Value Measurement Using (a)
(In thousands) LevelÌý1 LevelÌý2 LevelÌý3
March 2020
Financial assets:
Cash equivalents:
Money market funds $ 1,211,887Ìý Ìý $ 1,211,887Ìý Ìý $ —Ìý Ìý $ —Ìý Ìý
Time deposits 1,932Ìý Ìý 1,932Ìý Ìý —Ìý Ìý —Ìý Ìý
Derivative financial instruments 91,834Ìý Ìý —Ìý Ìý 91,834Ìý Ìý —Ìý Ìý
Deferred compensation 105,706Ìý Ìý 105,706Ìý Ìý —Ìý Ìý —Ìý Ìý
Financial liabilities:
Derivative financial instruments 14,531Ìý Ìý —Ìý Ìý 14,531Ìý Ìý —Ìý Ìý
Deferred compensation 113,289Ìý Ìý —Ìý Ìý 113,289Ìý Ìý —Ìý Ìý
(a)There were no transfers among the levels within the fair value hierarchy during the three months ended June 2020 or the year ended March 2020.

ÂÒÂ×°Íʿ’s cash equivalents include money market funds, and time deposits with maturities within three months of their purchase dates, that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign exchange forward contracts, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies, and considers the credit risk of the Company and its counterparties. ÂÒÂ×°ÍÊ¿'s short-term investments include excess cash invested in a managed income fund, and time deposits with
maturities greater than three months but less than one year from their purchase dates, that approximate fair value based on Level 1 measurements. ÂÒÂ×°Íʿ’s deferred compensation assets primarily represent investments held within plan trusts as an economic hedge of the related deferred compensation liabilities. These investments primarily include mutual funds (LevelÌý1) that are valued based on quoted prices in active markets. Liabilities related to ÂÒÂ×°Íʿ’s deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments.
All other financial assets and financial liabilities are recorded in the consolidated financial statements at cost, except life insurance contracts which are recorded at cash surrender value. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, short-term borrowings, accounts payable and accrued liabilities. At June 2020 and March 2020, their carrying values approximated fair value. Additionally, at June 2020 and March 2020, the carrying values of ÂÒÂ×°Íʿ’s long-term debt, including the current portion, were $5,610.8 million and $2,609.3 million, respectively, compared with fair values of $5,899.4 million and $2,672.9 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings.