Fair Value Measurements of Assets and Liabilities

6 Months Ended

Jun. 28, 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):

June 28, 2015	Level 1		Level 2		Level 3		Total
Available for sale marketable securities:
U.S. Government-backed securities	$	27,596	$	—	$	—	$	27,596
Agency bonds	—		56,605		—		56,605
Commercial paper	—		—		—		—
Certificates of deposit	—		19,763		—		19,763
Municipal bonds	—		10,625		—		10,625
Corporate bonds	—		10,730		—		10,730
Trading securities:
Equity securities – mutual funds	8,296		—		—		8,296
Derivative contracts, net	—		2,775		—		2,775
Total	$	35,892	$	100,498	$	—	$	136,390

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 thetwenty-six week period endedJune 28, 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.