Fair Value Measurements (Tables)

6 Months Ended

Jul. 04, 2015

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

As of July 4, 2015 and January 3, 2015, 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:

	July 4, 2015							January 3, 2015
	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	$	11,846	—		—	$	11,846	$	11,846		—		—	$	11,846
Liabilities:
Earn-out liability		—	—	$	1,219	$	1,219	$	—		—	$	1,423	$	1,423

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 July 4, 2015.

As of July 4, 2015		Fair Value (in thousands)	Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	1,219	Discounted cash flow	Projected royalties (in thousands)	$2,770 ($669 - $3,377)
				Discount rate	14.06% (10.33% - 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 six months ended July 4, 2015 and June 28, 2014 is as follows:

	Six Months Ended
(in thousands)	July 4, 2015			June 28, 2014
Balance as of beginning of the period	$	1,423		$	624
Payments against earn-out		(236	)		(264	)
Change in fair value of earn-out liability		32			191
Balance as of the end of the period	$	1,219		$	551