CarParts.com, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

6 Months Ended

Jun. 29, 2013

Financial assets valued on recurring basis

We measure our financial assets and liabilities at fair value on a recurring basis using the following valuation techniques:

(a) Market Approach – uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

(b) Income Approach – uses valuation techniques to convert future estimated cash flows to a single present amount based on current market expectations about those future amounts, using present value techniques.

The following table represents our fair value hierarchy and the valuation techniques used for financial assets measured at fair value on a recurring basis:


	As of June 29, 2013
	Total		Level 1		Level 2		Level 3		Valuation Techniques
Assets:
Cash and cash equivalents ⁽¹⁾	$	851	$	851	$	—	$	—	(a)
Investments – mutual funds ⁽²⁾		118		118		—		—	(a)

	$	969	$	969	$	—	$	—


	As of December 29, 2012
	Total		Level 1		Level 2		Level 3		Valuation Techniques
Assets:
Cash and cash equivalents ⁽¹⁾	$	1,030	$	1,030	$	—	$	—	(a)
Investments – mutual funds ⁽²⁾		110		110		—		—	(a)

	$	1,140	$	1,140	$	—	$	—

⁽¹⁾	Cash equivalents consist primarily of money market funds and short-term investments with original maturity dates of three months or less at the date of purchase, for which the Company determines fair value through quoted market prices.

⁽²⁾	Investments consist of mutual funds, classified as short-term investments available-for-sale and recorded at fair market value, based on quoted prices of identical assets that are trading in active markets as of the end of the period for which the values are determined.

Fair value measurements for assets measured on a non-recurring basis

The Company measures its non-financial assets at fair value on a non-recurring basis considering the following valuation techniques based on the Company’s evaluation of the circumstances:

(a) Market Approach – provides an estimation of fair value based on market prices in actual transactions and on asking prices for assets. Considerations such as time and condition of sale and terms of agreements are analyzed for comparable assets and are adjusted to arrive at an estimation of the fair value.

(c) Cost Approach – uses the concept of replacement cost as an indicator of fair value. The premise of the costs approach is that, if it were possible to replace the asset, a market participant would pay no more for an asset than the amount for which the asset could be replaced.

The following table represents the fair value measurements for assets measured on a non-recurring basis as of the Company’s impairment testing date, June 29, 2013 (in thousands):

Fair
Value

Impairment
Charge

Valuation
Techniques

Fair Value
Hierarchy

Assets:

Internally developed software

5,975

4,832

(b)

Level 3

Property and equipment

4,832

Product design intellectual property

1,037

838

(b)

Level 3

Domain name

515

348

(b)

Level 3

Trade names—WAG

217

(b)

Level 3

Intangible assets

1,245

Total impairment loss

6,077