Fair Value Measurements

9 Months Ended

Oct. 01, 2016

The following tables set forth by level within the fair value hierarchy, our financial assets at October 1, 2016 and January 2, 2016, that were accounted for at fair value on a recurring basis, according to the valuation techniques we used to determine their fair value (in thousands):



	October 1, 2016
	Level 1		Level 2		Level 3		Total
Marketable debt securities – current
Corporate bonds	$	—	$	3,212	$	—	$	3,212
U.S. Treasury securities	2,004		—		—		2,004
Commercial paper	—		747		—		747
	$	2,004	$	3,959	$	—	$	5,963



	January 2, 2016
	Level 1		Level 2		Level 3		Total
Marketable debt securities – current
Municipal bonds	$	—	$	4,055	$	—	$	4,055
Corporate bonds	—		2,512		—		2,512
	—		6,567		—		6,567
Marketable debt securities – non-current
Corporate bonds	—		5,001		—		5,001
U.S. Agency bonds	—		2,496		—		2,496
Municipal bonds	—		1,056		—		1,056
	—		8,553		—		8,553
	$	—	$	15,120	$	—	$	15,120

At October 1, 2016 and January 2, 2016, we had $2.3 million and $1.6 million, respectively, of debt and equity securities that fund our deferred compensation plan and are classified in other assets. We also had corresponding deferred compensation plan liabilities of $2.3 million and $1.6 million at October 1, 2016 and January 2, 2016, respectively, which are included in other long-term liabilities. The majority of the debt and equity securities are Level 1 as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Unrealized gains/(losses) on the debt and equity securities offset those associated with the corresponding deferred compensation plan liabilities.

- 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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