FAIR VALUE

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


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


•	Investments in life insurance policies—Valued at cash surrender value based on fair value of underlying investments.


•	Redeemable noncontrolling interest—Valued primarily using the income approach based on estimated future cash flows of the underlying business based on our 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 32%.

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



	Fair Value Measurements at March 29, 2014
	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	$	—	$	11,446	$	—	$	11,446
Life policies	—		19,747		—		19,747
Total assets measured at fair value	$	—	$	31,193	$	—	$	31,193
Redeemable noncontrolling interest	—		—		21,579		21,579
Total liabilities measured at fair value	$	—	$	—	$	21,579	$	21,579



	Fair Value Measurements at December 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	$	—	$	11,158	$	—	$	11,158
Life policies	—		19,534		—		19,534
Total assets measured at fair value	$	—	$	30,692	$	—	$	30,692
Redeemable noncontrolling interest	—		—		20,581		20,581
Total liabilities measured at fair value	$	—	$	—	$	20,581	$	20,581

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.

Concurrent with the acquisition of Vital River in 2013, we entered into a joint venture agreement with the noncontrolling interest holders that provide us with the right to purchase the remaining 25% of the entity for cash at its then appraised value beginning in January 2016. Additionally, the noncontrolling interest holders were granted the right to require us to purchase the remaining 25% of the entity at its then appraised value beginning in January 2016 for cash. These rights are accelerated in certain events. As the noncontrolling interest holders can require the Company to purchase for cash the remaining 25% interest, we classify the carrying amount of the noncontrolling interest above the equity section and below liabilities on the consolidated balance sheet and we adjust the carrying amount to fair value each quarter end. Adjustments to fair value, which is deemed to be Level 3 as the fair value is based on unobservable inputs, are recorded through additional paid-in capital.



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
Redeemable Noncontrolling Interest (Liability)	March 29, 2014			March 30, 2013
Beginning balance	$	20,581		$	—
Transfers in and/or out of Level 3	—			—
Total gains or losses (realized/unrealized):
Purchases, issuances and settlements				8,963
Included in other income (expense)	1			38
Change in balance due to foreign currency translation	(476		)	37
Included in additional paid-in capital	1,473			—
Ending balance	$	21,579		$	9,038

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 three months ended March 29, 2014, we recognized $575 of net hedge losses associated with forward currency contracts open during the period. As of March 29, 2014, there were no open forward currency contracts.