Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jul. 02, 2016

Accounting Policies [Abstract]

Basic and Diluted Net Income Per Share

The following table presents the calculation of both basic and diluted net income per share:

	Three Months Ended				Six Months Ended
	(In thousands, except per share amounts)
	July 2, 2016		June 27, 2015		July 2, 2016		June 27, 2015
Net income	$	4,814	$	7,252	$	8,746	$	12,006
Weighted-average shares outstanding	27,360		29,785		28,198		29,719
Dilutive effect of employee stock options and restricted shares	476		483		519		564
Diluted weighted-average shares outstanding	27,836		30,268		28,717		30,283
Basic income per share	$	0.18	$	0.24	$	0.31	$	0.40
Diluted income per share	$	0.17	$	0.24	$	0.30	$	0.40

Fair Value Assets Measured on Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis at July 2, 2016, were as follows:

	Fair Value Measurements as of July 2, 2016
	Level 1		Level 2		Level 3
	(In thousands)
Description
Assets:
Cash and cash equivalents
Money market funds	$	97,084	$	—	$	—
Short term investments
Corporate and government bonds (1)	—		34,827		—
Total assets measured at fair value	$	97,084	$	34,827	$	—
Liabilities:
Accrued Expenses
Derivative instruments (Note 6) (2)	—		8		—
Total liabilities measured at fair value	$	—	$	8	$	—

The Company’s financial assets and liabilities measured at fair value on a recurring basis at January 2, 2016, were as follows:

	Fair Value Measurements as of January 2, 2016
	Level 1		Level 2		Level 3
	(In thousands)
Description
Assets:
Cash and cash equivalents
Money market funds	$	110,817	$	—	$	—
Short term investments
Corporate and government bonds (1)	—		33,124		—
Total assets measured at fair value	$	110,817	$	33,124	$	—
Liabilities:
Accrued Expenses
Derivative instruments (Note 6) (2)	$	—	$	28	$	—
Total liabilities measured at fair value	$	—	$	28	$	—

(1) The bond investments are valued based on observable market values as of the Company’s reporting date. The bond investments are recorded at fair value and marked-to-market at the end of each reporting period. The realized and unrealized gains and losses are included in comprehensive income for that period.

(2) Derivative instruments are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount.