XML 25 R25.htm IDEA: XBRL DOCUMENT

Fair Value Measurement (Tables)

12 Months Ended

Jan. 03, 2015

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

As of January 3, 2015 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 was as follows (in thousands):

	As of January 3, 2015							As of December 28, 2013
	Fair Value Measurements							Fair Value Measurements
	Level 1		Level 2	Level 3		Total		Level 1		Level 2	Level 3		Total
Assets:
Money market funds	$	11,846				$	11,846	$	12,742				$	12,742
Liabilities:
Earn-out liability				$	1,423	$	1,423				$	624	$	624

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

Charges related to fair value adjustments were $1,258 thousand, $355 thousand and $215 thousand for the fiscal years 2014, 2013 and 2012, respectively

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 January 3, 2015 and December 28, 2013.

As of January 3, 2015

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

1,423

Discounted cash

Projected royalties

$3,048

flow

(in thousands)

($669 – $3,613)

Discount rate

13.54%

(10.34% - 27.00%)

As of December 28, 2013

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

624

Discounted cash

Projected royalties

$1,463

flow

(in thousands)

($414 – $1,675)

Discount rate

21.61%

(20.52% - 27.00%)

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

The following table provides a reconciliation of the beginning and ending balances of the contingent consideration – cash (Level 3 liabilities) (in thousands):

Balance as of December 29, 2012	$	652
Payments against earn-out		(383	)
Change in fair value of earn-out liability		355
Balance as of December 28, 2013		624
Payments against earn-out		(459	)
Change in fair value of earn-out liability		1,258
Balance as of January 3, 2015	$	1,423

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details