Fair Value Measurements of Assets and Liabilities

9 Months Ended

Sep. 28, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities

FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES

Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories:

• Level 1 – quoted prices in active markets for identical securities as of the reporting date;

• Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; and

• Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value.

The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Following are the disclosures related to the fair value of our financial assets and (liabilities) (in thousands):

September 28, 2014	Level 1		Level 2			Level 3		Total
Available for sale marketable securities:
U.S. Government-backed securities	$	12,618	$	—		$	—	$	12,618
Agency bonds	—		51,958			—		51,958
Commercial paper	—		39,332			—		39,332
Certificates of deposit	—		17,274			—		17,274
Municipal bonds	—		31,547			—		31,547
Corporate bonds	—		9,920			—		9,920
Trading securities:
Equity securities – mutual funds	6,945		—			—		6,945
Derivative contracts, net	—		(4,307		)	—		(4,307		)
Total	$	19,563	$	145,724		$	—	$	165,287

December 31, 2013	Level 1		Level 2			Level 3		Total
Available for sale marketable securities:
U.S. treasury notes	$	10,128	$	—		$	—	$	10,128
Agency bonds	—		37,961			—		37,961
Commercial paper	—		39,987			—		39,987
Certificates of deposit	—		7,786			—		7,786
Municipal bonds	—		49,319			—		49,319
Corporate bonds	—		5,001			—		5,001
Trading securities:
Equity securities – mutual funds	5,287		—			—		5,287
Derivative contracts, net	—		(1,113		)	—		(1,113		)
Total	$	15,415	$	138,941		$	—	$	154,356

Agency bonds are securities backed by U.S. government-sponsored entities. U.S. Government-backed securities include Treasury Bills and Treasury Notes.

We use an income approach to value the assets and liabilities for outstanding derivative contracts using current market information as of the reporting date, such as spot rates, interest rate differentials and implied volatility.

There were no transfers between fair value categories or changes to our valuation techniques during thethirty-nine weeks endedSeptember 28, 2014.

We believe the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities are a reasonable approximation of the fair value of those financial instruments because of the nature of the underlying transactions and the short-term maturities involved.