Fair Value Measurements

The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 30, 2017 and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands):



	June 30, 2018								December 30, 2017
	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:
Money market mutual funds	$	17,939	$	—	$	—	$	17,939	$	17,810	$	—	$	—	$	17,810
Certificates of deposit	17,381		—		—		17,381		17,282		—		—		17,282
Total assets	$	35,320	$	—	$	—	$	35,320	$	35,092	$	—	$	—	$	35,092

Liabilities:
Contingent acquisition consideration	$	—	$	—	$	913	$	913	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	913	$	913	$	—	$	—	$	—	$	—

The following table sets forth a summary of changes in fair value of our contingent acquisition consideration liability, which represents the recurring measurement that is classified within Level 3 of the fair value hierarchy wherein fair value is estimated using significant unobservable inputs (in thousands):



	June 30, 2018
	Contingent Acquisition Consideration
Beginning balance - December 30, 2017	$	—
Contingent consideration liability recorded in connection with Town & Country acquisition	894
Accretion of contingent consideration liability	19
Ending balance - June 30, 2018	$	913

We recorded our estimate of the fair value of contingent consideration associated with the Town & Country Resources, Inc. (“Town and Country”) acquisition based on the evaluation of the likelihood of the achievement of the contractual conditions that would result in the payment of the contingent consideration and weighted probability assumptions of these outcomes. The fair value of the liability was estimated using the Monte Carlo simulation with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included our probability assessments of the achievement of certain financial and operational metrics, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the merger agreement. Changes in these assumptions may change the valuation of the liability. There were no changes in the probability of the earn-out payment from the acquisition date through June 30, 2018. The cash portion of the contingent consideration liability has been discounted to reflect the time value of money, and therefore, as the milestone dates approach, the fair value of this liability will increase. Changes in fair value are recorded in general and administrative expense in the accompanying consolidated statements of operations.

Non-Recurring Fair Value Measurements

We re-measure the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets are comprised of long-lived assets, including property and equipment, restructuring liabilities, intangible assets and goodwill. In the three and six months ended June 30, 2018 and July 1, 2017, no significant remeasurements were necessary. Other financial instruments not measured or recorded at fair value in the accompanying condensed consolidated balance sheets principally consist of accounts receivable, accounts payable, and accrued liabilities. The estimated fair values of these instruments approximate their carrying values due to their short-term nature.

In the quarter ended September 30, 2017, we ceased use of 25,812 square feet of the Company’s headquarters facility and recorded a restructuring liability. We have updated our estimate in subsequent periods, as discussed in Note 12. These estimates include assumptions for the time period it will take to obtain a subtenant, construction costs, and certain sublease rates. These estimates may vary from the sublease agreements ultimately executed, if at all, and could result in an adjustment to the restructuring liability. In the first quarter of fiscal 2018, we updated our assumptions, as we had signed a sublease agreement for a portion of the ceased use space and updated our estimates for the expected time period it will take to obtain a subtenant for the remainder of the cease use space. We discounted the estimated future cash flows to arrive at fair value. This resulted in an additional $0.5 million of restructuring charges, which were primarily incurred in the first quarter of fiscal 2018. The restructuring accrual is a level 3 measurement.