iRobot 2015 Annual Report Download - page 142

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
59
Financial Assets and Liabilities
The Company’s financial assets and liabilities measured at fair value on a recurring basis at January 2, 2016, were as
follows:
Fair Value Measurements as of
January 2, 2016
Description Level 1 Level 2 Level 3
(In thousands)
Assets:
Cash and cash equivalents
Money market funds $110,817 $
—
$
—
Short term investments
Corporate and government bonds (1)
—
33,124
—
Total assets measured at fair value $ 110,817 $ 33,124 $
—
Liabilities:
Accrued expenses
Derivative instruments (Note 13) (2) $
—
$ 28 $
—
Total liabilities measured at fair value $
—
$ 28 $
—
The Company’s financial assets measured at fair value on a recurring basis at December 27, 2014, were as follows:
Fair Value Measurements as of
December 27, 2014
Description Level 1 Level 2 Level 3
(In thousands)
Assets:
Cash and cash equivalents
Money market funds $109,843 $
—
$
—
Short term investments
Corporate and government bonds (1)
—
36,166
—
Total assets measured at fair value $ 109,843 $ 36,166 $
—
(1) The bond investments are valued based on observable market values as of the Company's reporting date. The bond
investments are recorded at fair value and marked-to-market at the end of each reporting period. The realized and unrealized
gains and losses are included in comprehensive income for that period.
(2) Derivative instruments are valued using an income approach based on the present value of the forward rate less the
contract rate multiplied by the notional amount.
Recent Accounting Pronouncements
In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.
2015-17, "Income Taxes: Balance Sheet Classification of Deferred Taxes." ASU 2015-17 requires that the presentation of
deferred tax assets and liabilities be classified as noncurrent on the balance sheet instead of separating deferred taxes into
current and noncurrent amounts. This standard will become effective for fiscal years, and the interim periods within those
years, beginning after December 15, 2016, with early adoption allowed. The Company elected to prospectively adopt ASU
2015-17. The prior reporting period was not retrospectively adjusted. The adoption of this guidance had no impact on the
Company's Consolidated Statements of Income and Comprehensive Income.