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Fair Value Measurements and Disclosures | 9 Months Ended
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Sep. 30, 2017
Fair Value Disclosures [Abstract] |
Fair Value Measurements and Disclosures | Note 3. Fair Value Measurements and Disclosures The Company determines the fair values of its financial instruments based on the fair value hierarchy established in FASB Accounting Standards Codification (“ASC”) 820, Fair Value Measurement, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into the following three levels that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 — Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Such unobservable inputs include an estimated discount rate used in the Company’s discounted present value analysis of future cash flows, which reflects the Company’s estimate of debt with similar terms in the current credit markets. As there is currently minimal activity in such markets, the actual rate could be materially different. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The following tables present the Company’s assets and liabilities measured at estimated fair value on a recurring basis, excluding accrued interest components, categorized in accordance with the fair value hierarchy (in thousands), as of the following dates:
|  | September 30, 2017 |  |  | December 31, 2016 |
|  | Fair Value Measurements Using Input Types |  |  |  |  |  |  | Fair Value Measurements Using Input Types |  |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 812 |  |  | $ | — |  |  | $ | — |  |  | $ | 812 |  |  | $ | 959 |  |  | $ | — |  |  | $ | — |  |  | $ | 959 |
Commercial paper and corporate debt securities |  |  | — |  |  |  | 4,994 |  |  |  | — |  |  |  | 4,994 |  |  |  | — |  |  |  | 2,499 |  |  |  | — |  |  |  | 2,499 |
Total cash equivalents |  | $ | 812 |  |  | $ | 4,994 |  |  | $ | — |  |  | $ | 5,806 |  |  | $ | 959 |  |  | $ | 2,499 |  |  | $ | — |  |  | $ | 3,458 |
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and U.S. Government agency debt securities |  |  | — |  |  |  | 2,497 |  |  |  | — |  |  |  | 2,497 |  |  |  | — |  |  |  | 17,072 |  |  |  | — |  |  |  | 17,072 |
Certificates of deposits |  |  | — |  |  |  | 23,298 |  |  |  | — |  |  |  | 23,298 |  |  |  | — |  |  |  | 23,019 |  |  |  | — |  |  |  | 23,019 |
Commercial paper |  |  | — |  |  |  | 17,910 |  |  |  | — |  |  |  | 17,910 |  |  |  | — |  |  |  | 22,402 |  |  |  | — |  |  |  | 22,402 |
Municipal securities and corporate debt securities |  |  | — |  |  |  | 45,697 |  |  |  | — |  |  |  | 45,697 |  |  |  | — |  |  |  | 14,943 |  |  |  | — |  |  |  | 14,943 |
Asset-backed Securities |  |  | — |  |  |  | 6,914 |  |  |  | — |  |  |  | 6,914 |  |  |  | — |  |  |  | 5,463 |  |  |  | — |  |  |  | 5,463 |
Total marketable securities |  | $ | — |  |  | $ | 96,316 |  |  | $ | — |  |  | $ | 96,316 |  |  | $ | - |  |  | $ | 82,899 |  |  | $ | — |  |  | $ | 82,899 |
Total(1) |  | $ | 812 |  |  | $ | 101,310 |  |  | $ | — |  |  | $ | 102,122 |  |  | $ | 959 |  |  | $ | 85,398 |  |  | $ | — |  |  | $ | 86,357 |
(1) | Excludes $38.2 million and $43.6 million held in operating accounts as of September 30, 2017 and December 31, 2016, respectively. See “Note 4. Cash and Investments” of the Notes to Consolidated Financial Statements for more information.
The fair values of the marketable securities that are classified as Level 1 in the table above were derived from quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. The fair value of marketable securities that are classified as Level 2 in the table above were derived from non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques with all significant inputs derived from or corroborated by observable market data. There were no transfers of instruments between Level 1, Level 2 and Level 3 during the financial periods presented. Derivatives The Company uses foreign currency exchange forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives are carried at fair value with changes recorded in other income (expense), net in the consolidated statements of operations. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. The derivatives have maturities of approximately 30 days. The settlement of forward foreign currency contracts included in the three months ended September 30, 2017 and September 24, 2016 was a gain of $0.3 million and $0.1 million, respectively. The settlement of forward foreign currency contracts included in the nine months ended September 30, 2017 and September 24, 2016 was a gain of $1.0 million and a loss of $1.2 million, respectively. These are included in other income (expense), net, in the consolidated statements of operations. The following table presents the notional amounts and fair values of the Company’s outstanding derivative instruments in U.S. Dollar equivalent (in millions):
|  | As of September 30, 2017 |  |  | As of December 31, 2016 |
|  |  |  |  |  | Fair Value |  |  |  |  |  |  | Fair Value |
|  | Notional Amount |  |  | Asset |  |  | Liability |  |  | Notional Amount |  |  | Asset |  |  | Liability |
Undesignated Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward Foreign Currency Contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase |  | $ | 21.6 |  |  |  | — |  |  | $ | 0.1 |  |  | $ | 12.6 |  |  |  | — |  |  |  | — |
Sell |  | $ | 16.6 |  |  |  | — |  |  | $ | 0.1 |  |  | $ | 1.3 |  |  |  | — |  |  |  | — |

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- References No definition available. + Details
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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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