Fair Value (Notes)

12 Months Ended

Dec. 27, 2014

5. FAIR VALUE

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



	December 27, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents	$	—	$	1,934	$	—	$	1,934
Life insurance policies	—		20,520		—		20,520
Total assets measured at fair value	—		22,454		—		22,454

Redeemable noncontrolling interest	—		—		28,419		28,419
Contingent consideration	—		—		2,828		2,828
Total liabilities measured at fair value	$	—	$	—	$	31,247	$	31,247



	December 28, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents	$	—	$	1,851	$	—	$	1,851
Life insurance policies	—		19,534		—		19,534
Total assets measured at fair value	—		21,385		—		21,385

Redeemable noncontrolling interest	—		—		20,581		20,581
Total liabilities measured at fair value	$	—	$	—	$	20,581	$	20,581

During the fiscal years 2014 and 2013, there were no transfers between fair value levels.

Redeemable Noncontrolling Interest

The following table provides a rollforward of the fair value of the Company's redeemable noncontrolling interest related to the acquisition of Vital River in January 2013. See Note 2, "Business Acquisitions."



	December 27, 2014			December 28, 2013
	(in thousands)
Beginning balance	$	20,581		$	—
Additions	—			8,963
Total gains or losses (realized/unrealized):
Net income attributable to noncontrolling interest	855			687
Foreign currency translation	(442		)	367
Change in fair value included in additional paid-in capital	7,425			10,564
Ending balance	$	28,419		$	20,581

The significant unobservable inputs used in the fair value measurement of the Company’s redeemable noncontrolling interest are the estimated future cash flows based on projected financial data and discount rate of 18.5%. Significant changes in the timing or amounts of the estimated future cash flows would result in a significantly higher or lower fair value measurement. Significant increases or decreases in the discount rate would result in a significantly lower or higher fair value measurement, respectively.

Contingent Consideration

The following table provides a rollforward of the contingent consideration related to the acquisition of Argenta, BioFocus, VivoPath and ChanTest. See Note 2, "Business Acquisitions."



	December 27, 2014
	(in thousands)
Beginning balance	$	—
Additions	2,678
Total gains or losses (realized/unrealized):
Change in fair value	150
Ending balance	$	2,828

The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration are the probabilities of successful achievement of certain financial targets and a discount rate. Significant increases or decreases in any of the probabilities of success would result in a significantly higher or lower fair value measurement, respectively. Significant increases or decreases in the discount rate would result in a significantly lower or higher fair value measurement, respectively.

Debt Instruments

The book value of the Company's term and revolving loans, which are variable rate loans carried at amortized cost, approximates their fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2.

- 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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