FAIR VALUE MEASUREMENTS

12 Months Ended

Jan. 03, 2015

The following table summarizes assets and liabilities measured at fair value on a recurring basis:



	January 3, 2015						December 28, 2013
(dollars in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Investments	$	7.6	$	—	$	—	$	5.4	$	—	$	—

Liabilities
Contingent consideration	$	—	$	—	$	7.7	$	—	$	—	$	16.3

INVESTMENTS

The Company invests in marketable securities, principally equity based mutual funds, to mitigate the risk associated with the investment return on employee deferrals of compensation. All of the marketable securities purchased are included in other assets on the accompanying consolidated balance sheets. During fiscal 2014 and 2013, the gain on the mark to market of marketable securities was $0.4 million and $0.5 million, respectively.

The fair value of the Company's pension plan assets at January 3, 2015 and December 28, 2013, by asset category, are disclosed in the employee benefit plans footnote to the consolidated financial statements.

CONTINGENT CONSIDERATION

The following summarizes the significant unobservable inputs for the Company's Level 3 fair value measurements at January 3, 2015:



(dollars in millions)	Fair Value (USD)		Valuation technique	Unobservable inputs	Amount (CAD)
Contingent consideration	$	7.7	Discounted cash flow	Estimated contingent consideration payment	C$	10
				Discount rate	18		%
				Probability assumption	100		%

The following summarizes the significant unobservable inputs for the Company's Level 3 fair value measurements at December December 28, 2013:



(dollars in millions)	Fair Value (USD)		Valuation technique	Unobservable inputs	Amount (CAD)
Contingent consideration	$	16.3	Discounted cash flow	Estimated contingent consideration payment	C$	20
				Discount rate	18		%
				Probability assumption	100		%

BORROWINGS

As of January 3, 2015, the Level 2 fair value of the Company's $186 million in borrowings under its secured revolving credit facility approximated carrying value. The fair value of the Company's $400 million in senior notes was estimated by obtaining market quotes given the trading levels of other bonds of the same general issuer type and market perceived credit quality and is, therefore, within Level 2 of the fair value hierarchy. The fair value of the outstanding senior notes as of January 3, 2015 was approximately $414 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details