Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

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

As of December 31, 2016 and January 2, 2016, 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):

	As of December 31, 2016								As of January 2, 2016
	Fair Value Measurements								Fair Value Measurements
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	8,270		—		—	$	8,270	$	9,212		—		—	$	9,212
Liabilities:
Earn-out liability	$	—		—	$	694	$	694	$	—		—	$	1,005	$	1,005

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

Charges related to fair value adjustments were $95 thousand, $5 thousand and $1.3 million for the fiscal years 2016, 2015 and 2014, respectively

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 31, 2016 and January 2, 2016.

As of  December 31, 2016	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	694	Discounted cash flow	Projected royalties (in thousands)	$2,154
				Discount rate	11.22% (11.22% - 27.00%)
As of January 2, 2016	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	1,005	Discounted cash flow	Projected royalties (in thousands)	$2,949 ($134 - $3,153)
				Discount rate	11.36% (10.23% - 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 January 3, 2015	$	1,423
Payments against earn-out		(423	)
Change in fair value of earn-out liability		5
Balance as of January 2, 2016		1,005
Payments against earn-out		(406	)
Change in fair value of earn-out liability		95
Balance as of December 31, 2016	$	694