Fair Value Measurements

6 Months Ended

Dec. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

Level 1: Quoted prices for identical instruments in active markets.

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable.

Level 3: Significant inputs to the valuation model are unobservable.

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 30, 2012 and July 1, 2012 (in thousands):

			Fair Value Measurement Using
	December 30, 2012		Level 1		Level 2		Level 3
Assets:
Derivatives	$	147	$	—	$	147	$	—
Liabilities:
Derivatives	$	11,292	$	—	$	11,292	$	—
	July 1, 2012		Level 1		Level 2		Level 3
Assets:
Derivatives	$	1,926	$	—	$	1,926	$	—
Liabilities:
Derivatives	$	11,303	$	—	$	11,303	$	—

The fair value for Level 2 measurements are based upon the respective quoted market prices for comparable instruments in active markets, which include current market pricing for forward purchases of commodities, foreign currency forwards, and current interest rates.

The estimated fair value of the Company's Senior Notes at December 30, 2012 and July 1, 2012 was $258.0 million and $241.0 million, respectively, compared to the carrying value of $225.0 million on each date. The estimated fair value of the Senior Notes is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the valuation hierarchy. The carrying value of the Revolver and Short-Term Debt approximates the fair value since the underlying rate of interest is variable based upon LIBOR rates.  

The carrying values of cash and cash equivalents, trade receivables, and accounts payable are reasonable estimates of their fair values at December 30, 2012 and July 1, 2012 due to the short-term nature of these instruments.