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Fair Value Measurements
3 Months Ended
Apr. 03, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Recurring Fair Value Measurements
In accordance with accounting principles generally accepted in the U.S., certain assets and liabilities are required to be recorded at fair value on a recurring basis. For the Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are derivative financial instruments.
Derivative Financial Instruments
The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as "market risks." The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risk managed by the Company through the use of derivative instruments is foreign currency exchange rate risk related to intercompany interest payments. The Company does not enter into derivative contracts for trading purposes.
The Company has entered into forward contracts to buy or sell a quantity of a currency at a predetermined future date, and at a predetermined rate or price to mitigate uncertainty and volatility, and to cover underlying exposures to certain payments in currencies other than the functional currency. The Company has not designated these contracts for hedge accounting treatment and, therefore, the gains and losses on these contracts are recorded in other (loss) income, net in the condensed consolidated statement of operations. For the three months ended April 3, 2015, the Company recognized gains of $0.8 million. For the three months ended March 28, 2014, the losses related to these forward contracts were not significant.
Derivatives are carried at fair value in the condensed consolidated balance sheet in the line item other current assets or accrued liabilities, as applicable. As of April 3, 2015, the fair value of outstanding derivatives was not significant. For December 31, 2014, the fair value of outstanding derivatives totaled approximately $0.5 million in the line item other current assets. The fair value of foreign exchange contracts is determined using quoted prices for similar contracts obtained from financial institutions and is classified as a Level 2 measurement in the fair value hierarchy.
Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis as required by accounting principles generally accepted in the U.S. Typically, adjustments made to record assets at fair value on a nonrecurring basis are the result of impairment charges.
The Company did not record any impairment charges related to assets measured at fair value on a nonrecurring basis during the three months ended April 3, 2015 or March 28, 2014.
Other Fair Value Disclosures
The carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued expenses, and loans and notes payable approximate their fair values because of the relatively short-term maturities of these instruments.
The fair value of the Notes, included on the consolidated balance sheets in current portion of long-term debt as of April 3, 2015 and long-term debt as of December 31, 2014, is estimated using Level 2 inputs based on dealer quoted prices for the debt instruments based on recent transactions obtained from various sources. As of April 3, 2015, the carrying amount and fair value of the Notes, were $375.0 million and $355.7 million, respectively. As of December 31, 2014, the carrying amount and fair value of the Notes, were $375.0 million and $346.9 million, respectively.