Fair Value of Financial Instruments

6 Months Ended

Jul. 01, 2011

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note J — Fair Value of Financial Instruments

The Company measures and records financial instruments at their fair values. A fair value hierarchy is used for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels:

Level 1 — Quoted market prices in active markets for identical assets and liabilities;

Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable; and,

Level 3 — Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use.

The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheet as of July 1, 2011:

				Fair Value Measurements
				Quoted Prices
				in Active		Significant
				Markets for		Other			Significant
				Identical		Observable			Unobservable
				Assets		Inputs			Inputs
(Thousands)	Total			(Level 1)		(Level 2)			(Level 3)
Financial Assets
Directors’ deferred compensation investments	$	642		$	642	$	—		$	—
Foreign currency forward contracts		—			—		—			—
Total	$	642		$	642	$	—		$	—
Financial Liabilities
Directors’ deferred compensation liability	$	(642	)	$	642	$	—		$	—
Foreign currency forward contracts		(2,176	)		—		(2,176	)		—
Total	$	(2,818	)	$	642	$	(2,176	)	$	—

The Company uses a market approach to value the assets and liabilities for outstanding derivative contracts in the table above. Foreign currency forward contracts are valued through models that utilize market observable inputs including both spot and forward prices for the same underlying currencies. The carrying values of the other working capital items and debt on the Consolidated Balance Sheet approximate their fair values as of July 1, 2011.