Fair Value Measurements (Tables)

6 Months Ended

Jun. 28, 2014

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

As of June 28, 2014 and December 28, 2013, 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 were as follows:

	June 28, 2014							December 28, 2013
	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	$	12,245	—		—	$	12,245	$	12,742		—		—	$	12,742
Liabilities:
Earn-out liability		—	—	$	551	$	551	$	—		—	$	624	$	624

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 June 28, 2014.

As of June 28, 2014		Fair Value (in thousands)	Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	551	Discounted cash flow	Projected royalties (in thousands)	$1,544 ($414 - $1,810)
				Discount rate	21.74% (20.50% - 27.00%)

Reconciliation of Changes in Earn-Out (Level 3 Liabilities)

A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the six months ended June 28, 2014 and June 29, 2013 is as follows:

	Six Months Ended
(in thousands)	June 28,2014			June 29,2013
Balance at the beginning of the period	$	624		$	652
Payments against earn-out		(264	)		(198	)
Change in fair value of earn-out liability		191			91
	$	551		$	545