Note 9 - Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Fair Value Disclosures [Text Block]

9.

Fair Value of Assets and Liabilities

Applicable accounting literature establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Applicable accounting literature defines levels within the hierarchy based on the reliability of inputs as follows:

Level

1—Valuations

based on unadjusted quoted prices for identical assets or liabilities in active markets;

Level

2—Valuations

based upon quoted prices for

similar

instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

Level

3—

Valuations

based upon

one

or more significant unobservable inputs.

Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy.

Investments

Investments in equity securities listed on a national market or exchange are valued at the last sales price. Such securities are further detailed in Note

1,

Summary of Significant Accounting Policies and Other Information

, and classified within Level

1

of the valuation hierarchy.

There were no changes during

2016

to the company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of

December

31,

2016

and

January

2,

2016,

the company held no non-financial assets or liabilities that are required to be measured at fair value on a recurring basis.

The following table presents assets measured at fair value by classification within the fair value hierarchy as of

December

31,

2016:

	Fair Value Measurements Using
(in thousands )	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investment in Polytronics	$	10,435	$	—	$	—	$	10,435

The following table presents assets measured at fair value by classification within the fair value hierarchy as of

January

2,

2016:

	Fair Value Measurements Using
(in thousands )	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investment in Polytronics	$	11,697	$	—	$	—	$	11,697

The company’s other financial instruments include cash and cash equivalents, short-term investments, accounts receivable and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and accounts receivable approximate their fair values. The company’s revolving and term loan debt facilities’ fair values approximate book value at

January

2,

2016

and

December

27,

2014,

as the rates on these borrowings are variable in nature. The fair values of the company’s Euro Senior Notes, Series A and Series B were

$122.6

million and

$99.2

million, respectively, at

December

31,

2016

and are considered Level

2

in the valuation hierarchy. Carrying values of the Euro Senior Notes, Series A and Series B were

$122.3

million and

99.3

million, respectively, at

December

31,

2016.