Fair Value Measurements

12 Months Ended

Dec. 28, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

(15)           Fair Value Measurements

  The following table presents the classification and fair values of our derivative instruments not designated as hedges in our Consolidated Balance Sheets and our Consolidated Statement of Operations (in millions):

Consolidated Balance Sheets

Asset (Liability) derivative

		Year Ended
Derivatives	Classification	December 28, 2012			December 30, 2011
Foreign exchange forward contracts	Prepaid expenses and other current assets	$	--		$	0.2
Warrant	Warrant liability		(12.2	)		--
Total		$	(12.2	)	$	0.2

Consolidated Statement of Operations

Unrealized/realized gains/(losses)

		Year Ended
Derivatives	Classification	December 28, 2012		December 30, 2011
Foreign exchange forward contracts	Other income (expense), net	$	--	$	(0.1	)
Warrant	Other income (expense), net		4.2		--
Total		$	4.2	$	(0.1	)

We categorize our financial assets and liabilities on our Consolidated Balance Sheets into a three-level fair value hierarchy based on inputs used for valuation, which are categorized as follows:

Level 1 - Financial assets and liabilities whose values are based on quoted prices for identical assets or liabilities in an active public market.

Level 2 - Financial assets and liabilities whose values are based on quoted prices in markets that are not active or a valuation using model inputs that are observable for substantially the full term of the asset or liability.

Level 3 - Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management's assumptions and judgments when pricing the asset or liability.

The following table presents our fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis in our Consolidated Balance Sheets as of December 28, 2012 (in millions):

	Total		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities
Warrant liability	$	12.2	$	--	$	--	$	12.2
Total	$	12.2	$	--	$	--	$	12.2

The following table presents our fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis in our Consolidated Balance Sheets as of December 30, 2011 (in millions):

	Total		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Prepaid expenses and other current assets(1)	$	0.2	$	--	$	0.2	$	--
Total	$	0.2	$	--	$	0.2	$	--

(1) Amounts include forward contracts outstanding in our Consolidated Balance Sheets.

The warrant liability measured at fair value on a recurring basis was $12.2 million and $0 million as of December 28, 2012 and December 30, 2011, respectively. The valuation of the warrant liability is based on an estimated business enterprise value, which includes significant unobservable inputs that makes the preferred stock liability a Level 3 measurement. Refer to the discussion of the valuation methodology and assumptions in Note 7, Warrant and preferred stock.

A reconciliation of the warrant liability, issued on November 20, 2012, for the year ended December 28, 2012 is as follows (in thousands):

Fair value at issuance, November 20, 2012	$	16,381
Fair value, December 28, 2012		12,175
Unrealized gain (included in other income (expense), net)	$	4,206

As of December 28, 2012, the estimated fair value of our senior convertible notes was approximately $15.3 million, as determined through the use of Level 2 fair value inputs.  As of December 28, 2012, the estimated fair value of our Oaktree term loans was approximately $74.4 million. The fair value of the Oaktree term loans is derived from a model that includes significant unobservable inputs which make the Oaktree term loans a Level 3 measurement.These liabilities are not measured at their fair value in our Consolidated Balance Sheets for any period presented.

The fair value of our cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities approximate their carrying amounts due to their short-term nature.