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Fair Value of Financial Instruments (Tables) | 9 Months Ended
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Oct. 03, 2015
Fair Value of Financial Instruments |
Financial assets and liabilities measured at fair value on a recurring basis | The following summarizes the valuation of the Company’s financial instruments (in thousands).
|  | Fair Value Measurements at October 3, 2015 Using |  |  |
Description |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total |
Assets: |  |  |  |  |  |  |  |  |
Cash Equivalents: |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 63,316 |  | $ | — |  | $ | — |  | $ | 63,316 |
Certificates of deposit |  | — |  | 3,903 |  | — |  | 3,903 |
Total cash equivalents |  | $ | 63,316 |  | $ | 3,903 |  | $ | — |  | $ | 67,219 |
Short-term Investments: |  |  |  |  |  |  |  |  |
Municipal bonds |  | $ | — |  | $ | 98,741 |  | $ | — |  | $ | 98,741 |
Variable-rate demand notes |  | — |  | 9,495 |  | — |  | 9,495 |
International government bonds |  | — |  | 2,235 |  | — |  | 2,235 |
Corporate bonds |  | — |  | 2,199 |  | — |  | 2,199 |
Total short-term investments |  | $ | — |  | $ | 112,670 |  | $ | — |  | $ | 112,670 |
Long-term Investments: |  |  |  |  |  |  |  |  |
Auction rate securities |  | $ | — |  | $ | — |  | $ | 7,240 |  | $ | 7,240 |
Total long-term investments |  | $ | — |  | $ | — |  | $ | 7,240 |  | $ | 7,240 |
Total |  | $ | 63,316 |  | $ | 116,573 |  | $ | 7,240 |  | $ | 187,129 |
Liabilities: |  |  |  |  |  |  |  |  |
Accrued expenses: |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  | $ | — |  | $ | 4,070 |  | $ | 4,070 |
Other non-current liabilities: |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  | $ | — |  | $ | 9,192 |  | $ | 9,192 |
Derivative instruments |  | — |  | 329 |  | — |  | 329 |
|  | $ | — |  | $ | 329 |  | $ | 9,192 |  | $ | 9,521 |
Total |  | $ | — |  | $ | 329 |  | $ | 13,262 |  | $ | 13,591 |
|  | Fair Value Measurements at January 3, 2015 Using |  |  |
Description |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total |
Assets: |  |  |  |  |  |  |  |  |
Cash Equivalents: |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 71,415 |  | $ | — |  | $ | — |  | $ | 71,415 |
Certificates of deposit |  | — |  | 7,739 |  | — |  | 7,739 |
Commercial paper |  | — |  | 5,348 |  | — |  | 5,348 |
Municipal bonds |  | — |  | 1,757 |  | — |  | 1,757 |
U.S. government agency |  | — |  | 1,202 |  | — |  | 1,202 |
Corporate bonds |  | — |  | 1,101 |  | — |  | 1,101 |
U.S. government bonds |  | 1,000 |  | — |  | — |  | 1,000 |
Total cash equivalents |  | $ | 72,415 |  | $ | 17,147 |  | $ | — |  | $ | 89,562 |
Short-term Investments: |  |  |  |  |  |  |  |  |
Municipal bonds |  | $ | — |  | $ | 129,152 |  | $ | — |  | $ | 129,152 |
Corporate bonds |  | — |  | 33,033 |  | — |  | 33,033 |
Variable-rate demand notes |  | — |  | 12,915 |  | — |  | 12,915 |
Commercial paper |  | — |  | 8,995 |  | — |  | 8,995 |
Asset-backed securities |  | — |  | 5,377 |  | — |  | 5,377 |
International government bonds |  | — |  | 2,516 |  | — |  | 2,516 |
U.S. government bond |  | 650 |  | — |  | — |  | 650 |
U.S. government agency |  | — |  | 601 |  | — |  | 601 |
Certificates of deposit |  | — |  | 250 |  | — |  | 250 |
Total short-term investments |  | $ | 650 |  | $ | 192,839 |  | $ | — |  | $ | 193,489 |
Long-term Investments: |  |  |  |  |  |  |  |  |
Auction rate securities |  | $ | — |  | $ | — |  | $ | 7,419 |  | $ | 7,419 |
Total long-term investments |  | $ | — |  | $ | — |  | $ | 7,419 |  | $ | 7,419 |
Other assets, net: |  |  |  |  |  |  |  |  |
Derivative instruments |  | $ | — |  | $ | 331 |  | $ | — |  | $ | 331 |
Total |  | $ | — |  | $ | 331 |  | $ | — |  | $ | 331 |
Total |  | $ | 73,065 |  | $ | 210,317 |  | $ | 7,419 |  | $ | 290,801 |
Liabilities: |  |  |  |  |  |  |  |  |
Accrued expenses: |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  | $ | — |  | $ | 4,288 |  | $ | 4,288 |
Other non-current liabilities: |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  | $ | — |  | $ | 14,150 |  | $ | 14,150 |
Total |  | $ | — |  | $ | — |  | $ | 18,438 |  | $ | 18,438 |
Summary of quantitative information about level 3 asset fair value measurements | Auction rate securities
Fair Value at October 3, 2015 (000s) |  | Valuation Technique |  | Unobservable Input |  | Weighted Average |
$ | 7,240 |  | Discounted cash flow |  | Estimated yield |  | 1.04% |
|  |  |  | Expected holding period |  | 10 years |
|  |  |  | Estimated discount rate |  | 3.46% |
Summary of quantitative information about level 3 liability fair value measurements | Contingent consideration
Fair Value at October 3, 2015 (000s) |  | Valuation Technique |  | Unobservable Input |  | Range |
$ | 13,262 |  | Monte Carlo simulation |  | Expected revenue growth rate |  | 38.6% – 47.0% |
|  |  |  | Expected revenue volatility |  | 20.0% |
|  |  |  | Expected term |  | 0.3 years – 3.3 years |
|  |  |  | Estimated discount rate |  | 0.34% – 1.44% |
Summary of activity in Level 3 financial instruments | The following summarizes the activity in Level 3 financial instruments for the three and nine months ended October 3, 2015 (in thousands): Assets
Auction Rate Securities |  | Three Months Ended |  | Nine Months Ended |
Beginning balance |  | $ | 7,179 |  | $ | 7,419 |
Gain (loss) included in other comprehensive income (loss) |  | 61 |  | (179 | )
Balance at October 3, 2015 |  | $ | 7,240 |  | $ | 7,240 |
Liabilities
Contingent Consideration (1) |  | Three Months Ended |  | Nine Months Ended |
Beginning balance |  | $ | 15,092 |  | $ | 18,438 |
Settlements |  | — |  | (4,464 | )
Gain recognized in earnings (2) |  | (1,830 | ) | (712 | )
Balance at October 3, 2015 |  | $ | 13,262 |  | $ | 13,262 |
Net gain for the period included in earnings attributable to contingent consideration held at the end of the period: |  | $ | 1,830 |  | $ | 712 |
(1) In connection with the acquisition of Energy Micro, the Company recorded contingent consideration based upon the expected achievement of certain milestone goals. Changes to the fair value of contingent consideration due to changes in assumptions used in preparing the valuation model are recorded in selling, general and administrative expenses in the Consolidated Statement of Income. (2) Changes to the estimated fair value of contingent consideration were primarily due to revisions to the Company’s expectations of earn-out achievement.

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- Definition Tabular disclosure of the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset and liability. + References No definition available. + Details
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- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of liabilities. This disclosure may include, but is not limited to, the fair value of the liability, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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