FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 28, 2013

NOTE 5 FAIR VALUE MEASUREMENTS

Accounting Standards Codification (ASC) 820-10, Fair Value Measurements and Disclosures, requires that for any assets and liabilities stated at fair value on a recurring basis in the Company’s financial statements, the fair value of such assets and liabilities be measured based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Level 1 asset and liability values are derived from quoted prices in active markets for identical assets and liabilities and Level 2 asset and liability values are derived from quoted prices in inactive markets or based on other observable inputs.

The Company’s assets and liabilities measured at fair value on a recurring basis are categorized in the table below based upon their level within the fair value hierarchy as of September 28, 2013.

(In thousands)			Fair Value Measurements at Reporting Date Using
Description	September 28, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted Cash	$	3,405	$	3,405	$	-	$	-

Marketable securities:
Money market funds	5,209		5,209		-		-
Certificates of deposit	109		-		109		-
	5,318		5,209		109		-
Derivative assets:
Option contracts	427		-		427		-
Forward contracts	7		-		7		-
	434		-		434		-
Funds in investments and other assets:
Israeli pension funds	11,017		-		11,017		-
Pension assets not owned by plan	6,810		-		6,810		-
	17,827		-		17,827		-
	$	26,984	$	8,614	$	18,370	$	-

Liabilities:
Derivative liabilities:
Option contracts	57		-		57		-

The Company’s assets and liabilities measured at fair value on a recurring basis are categorized in the table below based upon their level within the fair value hierarchy as of December 29, 2012.

(In thousands)			Fair Value Measurements at Reporting Date Using
Description	December 29, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted Cash	$	3,107	$	3,107	$	-	$	-

Marketable securities:
Money market funds	4,244		4,244		-		-
Certificates of deposit	4,254		-		4,254		-
	8,498		4,244		4,254		-
Derivative assets:
Option contracts	755		-		755		-

Funds in investments and other assets:
Israeli pension funds	10,690		-		10,690
Pension assets not owned by plan	6,615		-		6,615		-
	17,305		-		17,305		-
	$	29,665	$	7,351	$	22,314	$	-
Liabilities:
Derivative liabilities:
Option contracts	202		-		202		-

The Company’s other financial instruments include short-term borrowings and long-term debt. The fair value of these financial instruments was estimated based on current rates for similar issues or on the current rates offered to the Company for debt of similar remaining maturities. The estimated fair values of these financial instruments were as follows:

	September 28, 2013				December 29, 2012
(In thousands)	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Short-term borrowings	$	5,614	$	5,607	$	32,985	$	32,020
Long-term debt	$	102,069	$	101,859	$	150,758	$	145,404

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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