FAIR VALUE

Financial Assets Measured at Fair Value on a Recurring Basis

The following table presents the Company’s financial assets that are measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016. Level 1 inputs are based on quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2 inputs are based on quoted prices for similar instruments in active markets and quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in a market. Level 3 inputs are based on prices or valuations that require inputs that are significant to the valuation and are unobservable.



	September 30, 2017								December 31, 2016
(In thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Other current assets
Foreign currency contracts^(a)	$	—	$	—	$	—	$	—	$	—	$	4,784	$	—	$	4,784
Total assets measured and recorded at fair value	$	—	$	—	$	—	$	—	$	—	$	4,784	$	—	$	4,784
Liabilities:
Other accrued liabilities
Foreign currency contracts^(a)	$	—	$	132	$	—	$	132	$	—	$	—	$	—	$	—
Total liabilities measured and recorded at fair value	$	—	$	132	$	—	$	132	$	—	$	—	$	—	$	—


(a)	Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments.

A reconciliation of the net fair value of foreign currency contract assets and liabilities subject to master netting arrangements that are recorded in the September 30, 2017 and December 31, 2016 condensed consolidated balance sheets to the net fair value that could have been reported in the respective condensed consolidated balance sheets is as follows:



	September 30, 2017						December 31, 2016
(In thousands)	Gross amounts of recognized liabilities		Gross amounts offset in the condensed consolidated balance sheet		Net amount of liabilities in the condensed consolidated balance sheet		Gross amounts of recognized assets		Gross amounts offset in the condensed consolidated balance sheet		Net amount of assets in the condensed consolidated balance sheet
Foreign currency contracts	$	132	$	—	$	132	$	4,784	$	—	$	4,784

Losses associated with derivatives are recorded in other income, net, in the condensed consolidated statements of operations. Losses associated with derivative instruments not designated as hedging instruments were as follows:



	Three months ended						Nine months ended
(In thousands)	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Losses on foreign currency contracts	$	(132	)	$	(267	)	$	(2,245	)	$	(6,432	)