Fair Value of Financial Instruments

6 Months Ended

Jun. 24, 2016

(9) Fair Value of Financial Instruments

Cash and cash equivalents, client accounts receivable, unbilled revenue, accounts payable and accrued subcontractor costs and billings in excess of revenue are carried at cost, which approximates fair value due to their short maturities. Fair value of long‑term debt, including the current portion, is estimated based on Level 2 inputs, except the amount outstanding on the revolving credit facility for which the carrying value approximates fair value. Fair value is determined by discounting future cash flows using interest rates available for issues with similar terms and average maturities. The estimated fair values of our financial instruments where carrying values do not approximate fair value are as follows:


	June 24, 2016				December 25, 2015
	Carrying		Fair		Carrying		Fair
($ in thousands)	Amount		Value		Amount		Value
Equipment financing	$	9,209	$	8,757	$	8,594	$	8,056

We primarily enter into derivative financial instruments to mitigate exposures to changing foreign currency exchange rates. These currency derivative instruments are carried on the balance sheet at fair value and are typically based upon Level 2 inputs including third-party quotes. At June 24, 2016, we had forward foreign exchange contracts on major world currencies with varying durations, none of which extend beyond one year. As of June 24, 2016, we had $0.1 million of derivative assets. We had an insignificant amount of derivative assets as of December 25, 2015. The unrealized and realized gains and losses due to changes in derivative fair values included in selling, general and administrative expense are as follows:


	Three Months Ended				Six Months Ended
	June 24,		June 26,		June 24,		June 26,
(in thousands)	2016		2015		2016		2015
Unrealized (loss) gain from changes in derivative fair values	$	(775)	$	511	$	177	$	(781)
Realized loss from changes in derivative fair values		(2,001)		(3,234)		(2,775)		(3,247)

- 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.

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