Fair Value Measurements

9 Months Ended

Oct. 02, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below.

The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:

• Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

• Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company primarily uses broker quotes for valuation of its short-term investments. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. During the nine months endedOctober 2, 2015, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition.

The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value based on the three-tier fair value hierarchy (in thousands):

	Level 1		Level 2		Level 3		Total
As of October 2, 2015
Cash equivalents
Money market funds	$	14,062	$	—	$	—	$	14,062
Short-term investments
State, municipal and local government agencies bonds	—		2,503		—		2,503
Corporate bonds	—		23,487		—		23,487
Prepaids and other current assets
Time deposit pledged for credit card facility	—		580		—		580
Derivative assets	—		177		—		177
Other assets
Long-term investment	2,587		—		—		2,587
Total assets measured and recorded at fair value	$	16,649	$	26,747	$	—	$	43,396
Accrued liabilities
Derivative liabilities	$	—	$	326	$	—	$	326
Total liabilities measured and recorded at fair value	$	—	$	326	$	—	$	326
	Level 1		Level 2		Level 3		Total
As of December 31, 2014
Cash equivalents
Money market funds	$	23,121	$	—	$	—	$	23,121
Short-term investments
State, municipal and local government agencies bonds	—		13,961		—		13,961
Corporate bonds	—		17,886		—		17,886
Prepaids and other current assets
Derivative assets	—		341		—		341
Other assets
Long-term investment	2,606		—		—		2,606
Total assets measured and recorded at fair value	$	25,727	$	32,188	$	—	$	57,915
Accrued liabilities
Derivative liabilities	$	—	$	7	$	—	$	7
Total liabilities measured and recorded at fair value	$	—	$	7	$	—	$	7