FAIR VALUE

Assets, liabilities, and redeemable noncontrolling interest measured at fair value on a recurring basis are summarized below:



	December 26, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents	$	—	$	190	$	—	$	190
Other current assets:
Marketable securities	4,509		—		—		4,509
Foreign currency forward contracts	—		15		—		15
Other assets:
Life insurance policies	—		20,364		—		20,364
Total assets measured at fair value	$	4,509	$	20,569	$	—	$	25,078

Other current liabilities:
Contingent consideration	$	—	$	—	$	1,172	$	1,172
Other long-term liabilities:
Contingent consideration	—		—		198		198
Redeemable noncontrolling interest	—		—		28,008		28,008
Total liabilities and redeemable noncontrolling interest measured at fair value	$	—	$	—	$	29,378	$	29,378



	December 27, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents	$	—	$	1,934	$	—	$	1,934
Other assets:
Life insurance policies	—		20,520		—		20,520
Total assets measured at fair value	$	—	$	22,454	$	—	$	22,454

Other current liabilities:
Contingent consideration	$	—	$	—	$	1,583	$	1,583
Other long-term liabilities:
Contingent consideration	—		—		1,245		1,245
Redeemable noncontrolling interest	—		—		28,419		28,419
Total liabilities and redeemable noncontrolling interest measured at fair value	$	—	$	—	$	31,247	$	31,247

During the fiscal years 2015 and 2014, there were no transfers between fair value levels.

Redeemable Noncontrolling Interest

The following table provides a rollforward of the fair value of the Company’s redeemable noncontrolling interest related to the acquisition of Vital River in January 2013. Refer to Note 2, “Business Acquisitions.”



	Fiscal Year
	2015			2014
	(in thousands)
Beginning balance	$	28,419		$	20,581
Additions	—			—
Total gains or losses (realized/unrealized):
Net income attributable to noncontrolling interest	838			855
Foreign currency translation	(1,066		)	(442		)
Change in fair value included in additional paid-in capital	(183		)	7,425
Ending balance	$	28,008		$	28,419

As of December 26, 2015, the significant unobservable inputs used in the fair value measurement of the Company’s redeemable noncontrolling interest are the estimated future cash flows and a discount rate of 18.0%. Significant changes in the timing or amounts of the estimated future cash flows would result in a significantly higher or lower fair value measurement. Significant increases or decreases in the discount rate would result in a significantly lower or higher fair value measurement, respectively. A 1% increase in the discount rate used would result in a $1.7 million decrease in the fair value of the redeemable noncontrolling interest.

Contingent Consideration

The following table provides a rollforward of the contingent consideration related to previous business acquisitions. See Note 2, “Business Acquisitions.”



	Fiscal Year
	2015			2014
	(in thousands)
Beginning balance	$	2,828		$	—
Additions	973			2,678
Payments	(600		)	—
Total gains or losses (realized/unrealized):
Reversal of previously recorded contingent liability and change in fair value	(1,831		)	150
Ending balance	$	1,370		$	2,828

The significant unobservable inputs used in the fair value measurement of the Company’s contingent consideration are the probabilities of successful achievement of certain financial targets and a discount rate. Significant increases or decreases in any of the probabilities of success would result in a significantly higher or lower fair value measurement, respectively. Significant increases or decreases in the discount rate would result in a significantly lower or higher fair value measurement, respectively.

Debt Instruments

The book value of the Company’s term and revolving loans, which are variable rate loans carried at amortized cost, approximates their fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2.