Fair Value of Financial Instruments

3 Months Ended

Apr. 01, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

12. Fair Value of Financial Instruments

The following methods and assumptions were used by the Company in estimating the fair values of its financial instruments:

Cash and Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable

The fair values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate carrying values due to the short maturity of these items.

Public Debt Securities

The fair values of the Company’s public debt securities are based on estimated current market prices.

Non-Public Variable Rate Debt

The carrying amounts of the Company’s variable rate borrowings approximate their fair values.

Deferred Compensation Plan Assets/Liabilities

The fair values of deferred compensation plan assets and liabilities, which are held in mutual funds, are based upon the quoted market value of the securities held within the mutual funds.

Derivative Financial Instruments

The fair values for the Company’s fuel hedging and aluminum hedging agreements are based on current settlement values. The fair values of the fuel hedging and aluminum hedging agreements at each balance sheet date represent the estimated amounts the Company would have received or paid upon termination of these agreements. Credit risk related to the derivative financial instruments is managed by requiring high standards for its counterparties and periodic settlements. The Company considers nonperformance risk in determining the fair value of derivative financial instruments.

The carrying amounts and fair values of the Company’s debt, deferred compensation plan assets and liabilities, and derivative financial instruments were as follows:

	April 1, 2012						Jan. 1, 2012						April 3, 2011
In Thousands	Carrying Amount			Fair Value			Carrying Amount			Fair Value			Carrying Amount			Fair Value
Public debt securities	$	(523,260	)	$	(574,264	)	$	(523,219	)	$	(576,127	)	$	(523,101	)	$	(564,527	)
Deferred compensation plan assets		11,324			11,324			10,709			10,709			9,934			9,934
Deferred compensation plan liabilities		(11,324	)		(11,324	)		(10,709	)		(10,709	)		(9,934	)		(9,934	)
Fuel hedging agreements		—			—			—			—			25			25
Aluminum hedging agreements		—			—			—			—			6,158			6,158

The fair values of the fuel hedging and aluminum hedging agreements at April 3, 2011 represented the estimated amount the Company would have received upon termination of these agreements.

GAAP requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The following table summarizes, by assets and liabilities, the valuation of the Company’s debt, deferred compensation plan, fuel hedging agreements and aluminum hedging agreements:

	April 1, 2012				Jan. 1, 2012				April 3, 2011
In Thousands	Level 1		Level 2		Level 1		Level 2		Level 1		Level 2
Assets
Deferred compensation plan assets	$	11,324			$	10,709			$	9,934
Fuel hedging agreements			$	—			$	—			$	25
Aluminum hedging agreements				—				—				6,158
Liabilities
Public debt securities		574,264				576,127				564,527
Deferred compensation plan liabilities		11,324				10,709				9,934

The Company maintains a non-qualified deferred compensation plan for certain executives and other highly compensated employees. The investment assets are held in mutual funds. The fair value of the mutual funds is based on the quoted market value of the securities held within the funds (Level 1). The related deferred compensation liability represents the fair value of the investment assets.

The Company’s fuel hedging agreements were based upon NYMEX rates that are observable and quoted periodically over the full term of the agreement and are considered Level 2 items.

The Company’s aluminum hedging agreements were based upon LME rates that are observable and quoted periodically over the full term of the agreement and are considered Level 2 items.

The Company does not have Level 3 assets or liabilities. Also, there were no transfers of assets or liabilities between Level 1 and Level 2 for Q1 2012 and Q1 2011.