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FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 29, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS

The accounting standard for fair value measurements defines fair value, and establishes a market-based framework or hierarchy for measuring fair value. The standard is applicable whenever assets and liabilities are measured at fair value. The fair value hierarchy established prioritizes the inputs used in valuation techniques into three levels as follows:
 
Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities;

Level 2 - Observable inputs other than the quoted prices in active markets for identical assets and liabilities - includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets, for substantially the full term of the financial instrument; and
Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions.
 
The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis and the level they fall within the fair value hierarchy:
Amounts Recorded at Fair Value 
 
Financial Statement Classification 
 
Fair Value
Hierarchy 
 
March 29,
2020
 
December 29,
2019
Contingent consideration, net
 
Contingent consideration, net - current and long-term
 
Level 3
 
$
2,223,739

 
$
2,174,378



The changes in the Level 3 fair value measurements from December 29, 2019 to March 29, 2020 relates to accretion. Key inputs in determining the fair value of the contingent consideration as of March 29, 2020 and December 29, 2019 included the discount rate of 7.5% as well as management's estimates of future sales volumes and EBITDA.