Fair Value Measurement (Tables)

12 Months Ended

Dec. 28, 2013

Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis

As of December 28, 2013 and December 29, 2012, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands):

	FY 2013: December 28, 2013							FY 2012: December 29, 2012
	Fair Value Measurements							Fair Value Measurements
	Level 1		Level 2	Level 3		Total		Level 1		Level 2	Level 3		Total
Assets:
Money market funds	$	12,742				$	12,742	$	10,839				$	10,839
Liabilities:
Earn-out liability				$	624	$	624				$	652	$	652

Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements

The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of December 28, 2013 and December 29, 2012.

As of December 28, 2013

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

624

Discounted cash

Projected royalties

$1,463

flow

(in thousands)

(414 – 1,675)

Discount rate

21.61%

(20.52% - 27.00%)

As of December 29, 2012

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

652

Discounted cash

Projected royalties

$1,762

flow

(in thousands)

(631 – 1,980)

Discount rate

21.84%

(20.85% - 27.00%)

Reconciliation of the Changes in the Company's Earn-Out - Cash (Level 3 Liabilities) Balance

The following table provides a reconciliation of the beginning and ending balances of the contingent consideration – cash (Level 3 liabilities) (in thousands):

Balance as of December 31, 2011	$	765
Addition of earn-out related to Ocunetics, Inc. acquisition		(328	)
Change in fair value of earn-out liability		215
Balance as of December 29, 2012		652
Payments against earn-out		(383	)
Change in fair value of earn-out liability		355
Balance as of December 28, 2013	$	624

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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