Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measures

v3.5.0.2
Fair Value Measures
 6 Months Ended
Jul. 02, 2016
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 the dates indicated, 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

 



 

 

 

Inputs

 



 

January 2, 2016

 

Level 1

 

Level 2

 

Level 3

 



 

 

 

 

 

 

 

 

 

Money market funds included in cash equivalents

 

$                    14,460

 

$         14,460

 

$                  -

 

$                  -

 

Foreign currency contracts included in prepaid expenses and other current assets

 

 33 

 

 -

 

 33 

 

 -

 



 

 

 

 

 

 

 

 

 



 

$                    14,493

 

$         14,460

 

$                33

 

$                  -

 



 

 

 

 

 

 

 

 

 



 

 

 

Fair Value Measurements Using

 



 

 

 

Inputs

 



 

July 2, 2016

 

Level 1

 

Level 2

 

Level 3

 



 

 

 

 

 

 

 

 

 

Money market funds included in cash equivalents

 

$                    22,938

 

$         22,938

 

$                  -

 

$                  -

 

Foreign currency contracts included in other current liabilities

 

 (161)

 

 -

 

 (161)

 

 -

 



 

 

 

 

 

 

 

 

 



 

$                    22,777

 

$         22,938

 

$             (161)

 

$                  -

 



 

 

 

 

 

 

 

 

 



NOTE B – FAIR VALUE MEASURES - CONTINUED

There were no transfers of financial assets or liabilities between levels of the fair value hierarchy 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 charge is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. At January 2, 2016 and July 2, 2016, there were no non-financial assets measured at fair value on a non-recurring basis.

       

The Company's financial instruments include cash equivalents,  accounts receivable, restricted cash, notes receivable, and accounts payable. The recorded values of cash equivalents, accounts receivable, restricted cash, and accounts payable 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.