Auction Rate Securities

6 Months Ended

Jul. 02, 2011

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

2. Auction Rate Securities

As of January 1, 2011, the Company’s auction rate securities portfolio consisted of the following:

Issuer	Cost Basis		Unrealized Loss			Fair Value at January 1, 2011 (Noncurrent)
	(In thousands)
Available-for-Sale Securities
Education Funding Capital Education Loan Backed Notes	$	6,250	$	(324	)	$	5,926

On April 27, 2011, the Company sold 100% of its Education Funding Capital Education Loan Backed Notes with a par value of $6.3 million held with Citigroup. These were the last remaining auction rate securities held by the Company.  The total proceeds from the transaction were $5.9 million. Proceeds from the sale were applied first to the $2.6 million outstanding balance of the line of credit with Citigroup described below in Note 3, “Line of Credit Agreements.”  The Company received the remaining $3.3 million in proceeds.  Upon the disposition of the underlying collateral, the loan agreement with Citigroup was terminated. As a result of this transaction, $312,000 in losses were reclassified from Accumulated Other Comprehensive Loss in stockholders’ equity and recognized in Other Income (Expense) in the Consolidated Statements of Operations and Comprehensive Loss in the thirteen and twenty-six weeks ended July 2, 2011.  After this reclassification, there was no accumulated other comprehensive gain or loss related to auction rate securities included in Total Stockholders’ Equity in the Condensed Consolidated Balance Sheet as of July 2, 2011. Accumulated other comprehensive loss resulting from unrealized losses of available-for-sale securities included in Total Stockholders’ Equity in the Condensed Consolidated Balance Sheet was $324,000 as of January 1, 2011.

During the thirteen and twenty-six weeks ended July 3, 2010, the Company recognized gains of $30,000 and $56,000, respectively, on auction rate securities classified as trading securities.  These gains have been recognized in other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss.  During the second quarter of fiscal year 2010, the auction rate securities held with a UBS affiliate, with a par value of $5.5 million, were sold by the Company pursuant to the terms of the ARS Rights.

For auction rate securities classified as available-for-sale, the Company recognized unrealized holding gains of $12,000 during the twenty-six weeks ended July 2, 2011. The Company recognized unrealized holding (losses) gains of ($62,000) and $1,000, respectively, during the thirteen and twenty-six weeks ended July 3, 2010.  Unrealized holding gains and losses on securities classified as available-for-sale are included as a separate component of stockholders’ equity, net of applicable taxes, and have been recognized in Other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

The following is a reconciliation of the beginning and ending balances of the Company’s auction rate securities portfolio and ARS Rights for the twenty-six weeks ended July 2, 2011 and July 3, 2010 (in thousands):

	For the			For the
	twenty-six weeks			twenty-six weeks
	ended July 2, 2011			ended July 3, 2010
Fair value at beginning of period	$	5,926		$	12,296
Total unrealized and realized gains (losses) included in Other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss		(312	)		56
Total unrealized gains (losses) included in Other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Loss		12			1
Reclassification of unrealized loss from Other comprehensive income (loss) to realized loss included in Other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss		312			-
Sales		(5,938	)		(5,500	)
Fair value at end of period	$	-		$	6,853

The following is a reconciliation of the beginning and ending balances of the Company’s auction rate securities portfolio and ARS Rights for the thirteen weeks ended July 2, 2011 and July 3, 2010 (in thousands):

	For the thirteen weeks ended July 2, 2011			For the thirteen weeks ended July 3, 2010
Fair value at beginning of period	$	5,938		$	12,385
Total unrealized and realized gains (losses) included in Other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss		(312	)		30
Total unrealized gains (losses) included in Other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Loss		-			(62	)
Reclassification of unrealized loss from Other comprehensive income (loss) to realized loss included in Other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss		312			-
Sales		(5,938	)		(5,500	)
Fair value at end of period	$	-		$	6,853