Fair Value Measurements

6 Months Ended

Jul. 04, 2015

Our assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – observable market-based inputs or unobservable inputs that are corroborated by market data; and Level 3 – unobservable inputs that are not corroborated by market data.

As of July 4, 2015, our assets and liabilities measured at fair value on a recurring basis are categorized in the table below:



	July 4, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit	$	—	$	—	$	—	$	—
Marketable trading securities ^(a)	52,371		52,371		—		—
Derivative assets	31,344		—		31,344		—
Total assets at fair value	$	83,715	$	52,371	$	31,344	$	—

Liabilities:
Derivative liabilities	$	5,666	$	—	$	5,666	$	—
Contingent consideration	6,128		—		—		6,128
Total liabilities at fair value	$	11,794	$	—	$	5,666	$	6,128


(a)	Included in other current assets in our consolidated balance sheet.

As of January 3, 2015, our assets and liabilities measured at fair value on a recurring basis are categorized in the table below:



	January 3, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit	$	90	$	90	$	—	$	—
Marketable trading securities ^(a)	56,616		56,616		—		—
Derivative assets	31,213		—		31,213		—
Total assets at fair value	$	87,919	$	56,706	$	31,213	$	—

Liabilities:
Derivative liabilities	$	1,793	$	—	$	1,793	$	—
Contingent consideration	7,647		—		—		7,647
Total liabilities at fair value	$	9,440	$	—	$	1,793	$	7,647


(a)	Included in other current assets in our consolidated balance sheet.

The fair value of the cash equivalents approximated cost and the gain or loss on the marketable trading securities was recognized in the consolidated statement of income to reflect these investments at fair value.

Our senior unsecured notes due in 2024, 2022 and 2017 are stated at amortized cost, and their respective fair values were determined based on Level 2 criteria. The fair values and carrying values of these notes are shown in the table below:



	July 4, 2015
	Fair Value
	Total		Level 1		Level 2		Level 3		Carrying Value
Liabilities:
Senior unsecured notes, 5.25% due 2017	$	319,284	$	—	$	319,284	$	—	$	300,000
Senior unsecured notes, 5.00% due 2022	310,072		—		310,072		—		298,724
Senior unsecured notes, 4.95% due 2024	508,885		—		508,885		—		498,343
	$	1,138,241	$	—	$	1,138,241	$	—	$	1,097,067



	January 3, 2015
	Fair Value
	Total		Level 1		Level 2		Level 3		Carrying Value
Liabilities:
Senior unsecured notes, 5.25% due 2017	$	323,527	$	—	$	323,527	$	—	$	300,000
Senior unsecured notes, 5.00% due 2022	314,954		—		314,954		—		298,634
Senior unsecured notes, 4.95% due 2024	499,923		—		499,923		—		498,255
	$	1,138,404	$	—	$	1,138,404	$	—	$	1,096,889

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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