Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measures

v2.4.0.8
Fair Value Measures
9 Months Ended
Sep. 27, 2014
Fair Value Measures [Abstract]  
Fair Value Measures

NOTE B – FAIR VALUE MEASURES

 

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is 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, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:

 

·

Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.

·

Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

·

Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date.

       

As of December 28, 2013 and September 27, 2014, the following financial assets and liabilities were measured at fair value on a recurring basis using the type of inputs shown:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

December 28, 2013

 

Level 1 Inputs

 

Level 2 Inputs

 

Level 3 Inputs

 

 

 

 

 

 

 

 

 

 

 

Money market funds included in cash equivalents

 

$                    9,249

 

$                9,249

 

$                       -

 

$                       -

 

Term deposits included in cash equivalents

 

348 

 

 -

 

348 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

September 27, 2014

 

Level 1 Inputs

 

Level 2 Inputs

 

Level 3 Inputs

 

 

 

 

 

 

 

 

 

 

 

Money market funds included in cash equivalents

 

$                  13,872

 

$              13,872

 

$                       -

 

$                       -

 

 

 

 

 

 

 

 

 

 

 

There were no transfers of financial assets or liabilities between Level 1 and Level 2 inputs for the periods indicated.

The majority of the Company's non-financial assets, which include goodwill, intangible assets, and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill and indefinite-lived intangibles) such that a non-financial asset is required to be evaluated for impairment, an impairment is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. At December 28, 2013 and September 27, 2014, there were no non-financial assets measured at fair value on a non-recurring basis.

       

The Company's financial instruments include cash equivalents, restricted cash, securities held-to-maturity (“HTM”), and notes receivable. The recorded values of cash equivalents and restricted cash approximate their fair values, based on their short-term nature. The carrying value of the notes receivable approximate fair value because the variable interest rates in the notes reflect current market rates (see Note F).  HTM securities consist of certificates of deposits. The fair value of a certificate of deposit is determined based on the pervasive interest rates in the market, which is considered to be a Level 2 input. The carrying values of these certificates of deposit approximate their fair values due to their short-term maturities.