FAIR VALUE

The Company uses a three-tier hierarchy to assess the inputs used to measure the fair value of financial assets and liabilities.



Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2	Unadjusted quoted prices in active markets for similar assets or liabilities, or
	Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
	Inputs other than quoted prices that are observable for the asset or liability
Level 3	Unobservable inputs for the asset or liability

The Company uses the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The fair value of the Company's cash equivalents, term deposits, accounts receivable and accounts payable approximated book value as of March 29, 2014 and December 28, 2013, respectively, due to their short-term nature. See Note 7 of Notes to Condensed Consolidated Financial Statements for disclosure of the approximate fair value of the Company's debt at March 29, 2014 and December 28, 2013.

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 29, 2014 and December 28, 2013 (in millions):



	March 29, 2014		December 28, 2013		Classification
Assets:
Prepaid Expenses and Other Current Assets:
Derivative Currency Contracts	$	5.3	$	8.4	Level 2
Derivative Commodity Contracts	1.4		4.7		Level 2
Investments	1.1		7.6		Level 2
Other Noncurrent Assets:
Assets Held in Rabbi Trust	5.1		5.1		Level 1
Derivative Currency Contracts	1.3		0.7		Level 2
Derivative Commodity Contracts	0.1		—		Level 2
Liabilities:
Other Accrued Expenses:
Deferred Contingent Purchase Price	8.3		8.3		Level 3
Hedging Obligations (current):
Interest Rate Swap	3.8		5.7		Level 2
Derivative Currency Contracts	2.9		3.1		Level 2
Derivative Commodity Contracts	9.5		2.5		Level 2
Hedging Obligations:
Interest Rate Swap	15.0		16.1		Level 2
Derivative Currency Contracts	1.1		0.7		Level 2
Derivative Commodity Contracts	0.2		—		Level 2
Other Noncurrent Liabilities:
Deferred Contingent Purchase Price	1.5		1.4		Level 3

The Company’s derivative contracts are valued at fair value using the market or income approaches. The Company measures the fair value of foreign currency exchange contracts using Level 2 inputs based on observable spot and forward rates in active markets. The Company measures the fair value of commodity contracts using Level 2 inputs through observable market transactions in active markets provided by financial institutions. The Company measures the fair value of investments using Level 2 inputs based on quoted market prices for similar instruments in active markets. The Company measures the fair value of interest rate swaps using Level 2 inputs in an income approach for valuation based on expected interest rate yield curves over the remaining duration of the interest rate swaps. During the three months ended March 29, 2014, there were no transfers between classification Levels 1, 2 or 3.

The table below sets forth a summary of changes in fair market value of the Company’s Level 3 liabilities for the three months ended March 29, 2014 and March 30, 2013 (in millions):



	Three Months Ended
	March 29, 2014			March 30, 2013
Beginning Balance	$	9.7		$	21.1
Valuation Adjustments	0.4			0.3
Payments	(0.3		)	—
Ending Balance	$	9.8		$	21.4

The liabilities described above are comprised entirely of the deferred contingent purchase price of the Company's acquisitions and are measured using Level 3 inputs. The fair value was determined using valuation techniques based on risk and probability adjusted discounted cash flows.