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 October 3, 2015 and January 3, 2015, 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 October 3, 2015 and January 3, 2015.

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 October 3, 2015 and January 3, 2015 (in millions):



	October 3, 2015		January 3, 2015		Classification
Assets:
Prepaid Expenses and Other Current Assets:
Derivative Currency Contracts	$	2.1	$	1.6	Level 2
Derivative Commodity Contracts	4.6		2.3		Level 2
Other Noncurrent Assets:
Assets Held in Rabbi Trust	5.2		5.2		Level 1
Derivative Currency Contracts	0.7		—		Level 2
Derivative Commodity Contracts	0.3		—		Level 2
Liabilities:
Hedging Obligations (current):
Derivative Currency Contracts	32.5		17.5		Level 2
Derivative Commodity Contracts	15.1		12.2		Level 2
Hedging Obligations:
Interest Rate Swap	9.6		11.9		Level 2
Derivative Currency Contracts	21.4		10.5		Level 2
Derivative Commodity Contracts	0.5		0.1		Level 2

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 1 inputs based on quoted market prices for identical 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 nine months ended October 3, 2015, 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 (in millions):



	Three Months Ended				Nine Months Ended
	October 3, 2015		September 27, 2014		October 3, 2015		September 27, 2014
Beginning Balance	$	—	$	—	$	—	$	9.7
Valuation adjustments	—		—		—		(1.1		)
Payments	—		—		—		(8.6		)
Ending Balance	$	—	$	—	$	—	$	—

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. There were no fair market value Level 3 liabilities for the three or nine months ended October 3, 2015.