FAIR VALUE

Valuation methodologies used for assets and liabilities measured or disclosed at fair value are as follows:


•	Time deposits—Valued at their ending balances as reported by the financial institutions that hold our securities, which approximates fair value.


•	Life policies—Valued at cash surrender value based on fair value of underlying investments.


•	Hedge contract—Valued at fair value by management based on our foreign exchange rates and forward points provided by banks.

•

Redeemable noncontrolling interest—Valued using a weighted combination of a market-based approach, utilizing information about our company as well as publicly available industry information to determine revenue and earnings multiples, and an income approach based on estimated future cash flows based on projected financial data discounted by a weighted average cost of capital. Significant assumptions include a discount rate of 18% and a long-term pretax operating margin of 28% .

Assets and liabilities measured at fair value on a recurring basis are summarized below:



	Fair Value Measurements at September 28, 2013
	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Assets and Liabilities at Fair Value
Time deposits	$	—	$	11,084	$	—	$	11,084
Life policies	—		18,893		—		18,893
Total assets measured at fair value	$	—	$	29,977	$	—	$	29,977
Redeemable noncontrolling interest	—		—		14,577		14,577
Total liabilities measured at fair value	$	—	$	—	$	14,577	$	14,577



	Fair Value Measurements at December 29, 2012
	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Assets and Liabilities at Fair Value
Time deposits	$	—	$	6,781	$	—	$	6,781
Life policies	—		19,555		—		19,555
Hedge contract	—		16		—		16
Total assets measured at fair value	$	—	$	26,352	$	—	$	26,352
Redeemable noncontrolling interest	—		—		—		—
Total liabilities measured at fair value	$	—	$	—	$	—	$	—

The book value of our term and revolving loans, which are variable rate loans carried at amortized cost, approximates fair value based current market pricing of similar debt.



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended
Redeemable Noncontrolling Interest (Liability)	September 28, 2013		September 29, 2012
Beginning balance	$	—	$	—
Transfers in and/or out of Level 3	—		—
Total gains or losses (realized/unrealized):
Included in other income (expense)	476		—
Included in other comprehensive income (CTA)	233		—
Included in additional paid-in capital	4,905
Purchases, issuances and settlements	8,963		—
Ending balance	$	14,577	$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended
Auction rate securities (Asset)	September 28, 2013		September 29, 2012
Beginning balance	$	—	$	11,051
Transfers in and/or out of Level 3	—		—
Total gains or losses (realized/unrealized):
Included in other income (expense)	—		(712		)
Included in other comprehensive income	—		921
Purchases, issuances and settlements	—		(11,260		)
Ending balance	$	—	$	—

We enter into derivative instruments to hedge foreign currency exchange risk to reduce the impact of changes to foreign currency rates on our financial statements. During the nine months ended September 28, 2013, we recognized $289 of net hedge losses associated with forward currency contracts open during the period. As of September 28, 2013, there were no open forward currency contracts.