Fair Value

12 Months Ended

Dec. 28, 2013

Fair Value Disclosures [Abstract]

Fair Value

(14) Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2	Unadjusted quoted prices in active markets for similar assets or liabilities, or
	Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
	Inputs other than quoted prices that are observable for the asset or liability
Level 3	Unobservable inputs for the asset or liability

The Company uses the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 28, 2013 and December 29, 2012, respectively (in millions):

	December 28, 2013		December 29, 2012
					Classification
Assets:
Prepaid expenses and other current assets:
Derivative currency contracts	$	8.4	$	6.8	Level 2
Derivative commodity contracts	4.7		4.2		Level 2
Investments	7.6		8.3		Level 2
Other noncurrent assets:
Assets Held in Rabbi Trust	5.1		2.6		Level 1
Derivative currency contracts	0.7		2.3		Level 2
Derivative commodity contracts	—		0.2		Level 2
Liabilities:
Other accrued expenses:
Deferred contingent purchase price	8.3		—		Level 3
Hedging obligations current:
Interest rate swap	5.7		—		Level 2
Derivative currency contracts	3.1		4.6		Level 2
Derivative commodity contracts	2.5		1.7		Level 2
Hedging obligations:
Interest rate swap	16.1		35.4		Level 2
Derivative currency contracts	0.7		0.3		Level 2
Other noncurrent liabilities:
Deferred contingent purchase price	1.4		21.1		Level 3

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date.

Level 1 fair value measurements are carried at market value. As of December 28, 2013, market value for Level 1 assets approximates cost.

Level 2 fair value measurements for derivative assets and liabilities are measured using quoted prices in active markets for similar assets and liabilities. Interest rate swaps are valued based on the six-month LIBOR swap rate for similar instruments. Foreign currency forwards are valued based on exchange rates quoted by domestic and foreign banks for similar instruments. Fair value of debt was estimated using Level 2 fair value measurements based on quoted market values. The carrying value of debt includes adjustments related to fair value hedges (see Note 7 of Notes to the Consolidated Financial Statements for the fair value estimate of debt).

Level 3 liabilities are comprised entirely of the deferred contingent purchase price of the Company's acquisitions and are measured using Level 3 inputs. The fair value was determined using valuation techniques based on risk and probability adjusted discounted cash flows.

The Company did not change its valuation techniques during fiscal 2013.

The table below sets forth a summary of changes in fair market value of the Company's Level 3 liabilities as of December 28, 2013 and December 29, 2012, respectively (in millions):

	Year Ended
	December 28, 2013			December 29, 2012
Beginning balance	$	21.1		$	23.5
Expense	1.1			1.2
Acquisitions	—			0.4
Fair value adjustment	(12.3		)	—
Payments	(0.2		)	(4.0		)
Ending balance	$	9.7		$	21.1

The liabilities described above are comprised entirely of the deferred contingent purchase price of the Company's acquisitions and are measured using Level 3 inputs. The fair value was determined using valuation techniques based on risk and probability adjusted discounted cash flows.