FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 27, 2020

Assets measured at fair value on a recurring basis

Our assets measured at fair value on a recurring basis consisted of the following:


	September 27, 2020
(in thousands)	Total fair value		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)
Cash and cash equivalents	$	28,233	$	28,233	$	—	$	—
Restricted cash and cash equivalents	47,982		47,982		—		—
Cash, cash equivalents and restricted cash (1)	$	76,215	$	76,215	$	—	$	—

Municipal debt securities	$	72,354	$	—	$	72,354	$	—
Corporate debt securities	88,136		—		88,136		—
Agency mortgage-backed securities	713		—		713		—
U.S. government and agency securities	1,139		—		1,139		—
Restricted investments classified as held-to-maturity	$	162,342	$	—	$	162,342	$	—

Deferred compensation investments (2)	$	12,950	$	12,950	$	—	$	—


	December 29, 2019
(in thousands)	Total fair value		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)
Cash and cash equivalents	$	37,608	$	37,608	$	—	$	—
Restricted cash and cash equivalents	54,763		54,763		—		—
Cash, cash equivalents and restricted cash (1)	$	92,371	$	92,371	$	—	$	—

Municipal debt securities	$	74,236	$	—	$	74,236	$	—
Corporate debt securities	76,068		—		76,068		—
Agency mortgage-backed securities	1,376		—		1,376		—
U.S. government and agency securities	1,051		—		1,051		—
Restricted investments classified as held-to-maturity	$	152,731	$	—	$	152,731	$	—

Deferred compensation investments (2)	$	13,670	$	13,670	$	—	$	—

(1)Cash, cash equivalents and restricted cash consist of money market funds, deposits and investments with original maturities of three months or less.

(2)Deferred compensation investments consist of mutual funds and money market funds.

Assets measured at fair value on a nonrecurring basis

We measure the fair value of certain non-financial assets on a nonrecurring basis, including goodwill and certain intangible assets. During the first quarter of 2020, we performed an interim impairment test as of the last day of our first fiscal quarter (March 29, 2020) due to market conditions. As a result of the test, goodwill and client relationship intangible assets with a total carrying value of $221.6 million were written down to their fair value, and an impairment charge of $175.2 million was recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirty-nine weeks ended September 27, 2020. Refer to Note 4: Goodwill and Intangible Assets for additional details on the impairment charge and valuation methodologies.

The impairment was comprised as follows:


	March 29, 2020
(in thousands)	Total fair value		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total impairment loss
Goodwill	$	31,705	$	—	$	—	$	31,705	$	(140,489)
Client relationships	14,700		—		—		14,700		(34,700)
Total	$	46,405	$	—	$	—	$	46,405	$	(175,189)

- 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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