Fair Value Measurements of Assets and Liabilities

3 Months Ended

Mar. 29, 2015

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):

March 29, 2015	Level 1		Level 2			Level 3		Total
Available for sale marketable securities:
U.S. Government-backed securities	$	27,615	$	—		$	—	$	27,615
Agency bonds	—		72,126			—		72,126
Commercial paper	—		—			—		—
Certificates of deposit	—		20,976			—		20,976
Municipal bonds	—		16,140			—		16,140
Corporate bonds	—		10,756			—		10,756
Trading securities:
Equity securities – mutual funds	8,280		—			—		8,280
Derivative contracts, net	—		(553		)	—		(553		)
Total	$	35,895	$	119,445		$	—	$	155,340

December 31, 2014	Level 1		Level 2			Level 3		Total
Available for sale marketable securities:
U.S. treasury notes	$	17,608	$	—		$	—	$	17,608
Agency bonds	—		51,951			—		51,951
Commercial paper	—		13,500			—		13,500
Certificates of deposit	—		19,122			—		19,122
Municipal bonds	—		27,119			—		27,119
Corporate bonds	—		10,902			—		10,902
Trading securities:
Equity securities – mutual funds	7,351		—			—		7,351
Derivative contracts, net	—		(2,739		)	—		(2,739		)
Total	$	24,959	$	119,855		$	—	$	144,814

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 thethirteen week period endedMarch 29, 2015.

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.