Fair Value Measurements (Tables)

9 Months Ended

Sep. 28, 2013

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

As of September28, 2013 and December29, 2012, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows:

	September 28, 2013										December 29, 2012
	Fair Value Measurements										Fair Value Measurements
(in thousands)	Level 1		Level 2	Level 3			Total			Level 1			Level 2			Level 3			Total
Assets:
Money market funds	$	12,741				$		12,741	$			10,839		0			0	$		10,839
Liabilities:
Earn-out liability				$	546	$		546	$			0		0	$		652	$		652

Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements

The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of September28, 2013.

As of September28, 2013	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	546	Discounted cash flow	Projected royalties (in thousands)	$1,408 ($414-$1,644)
				Discount rate	21.67% (20.40%-27.00%)

Reconciliation of the Changes in the Company's Earn-Out - Cash (Level 3 Liabilities) Balance

A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the nine months ended September28, 2013 and September29, 2012 is as follows:

	NineMonthsEnded
(in thousands)	September28 2013,			September29, 2012
Balance at the beginning of the period	$	652		$	765
Payments against earn-out		(287	)		(241	)
Change in fair value of earn-out liability		181			195
Balance at the end of the period	$	546		$	719