Fair Values of Financial Instruments

9 Months Ended

Oct. 07, 2017

Note F – Fair Values of Financial Instruments

The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values.

Cash and Cash Equivalents

Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity.

Long-term Debt

Fair values of long-term debt is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model.

The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at October 7, 2017, December 31, 2016 and October 1, 2016.

			Fair Value Measurements Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
October 7, 2017	Carrying		for Identical		Observable Inputs		Inputs
In thousands	Amount		Assets (Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and cash equivalents	$	1,646	$	1,646	$	—	$	—

Financial liabilities
Current portion of long-term debt	$	1,300	$	—	$	1,300	$	—
Long-term debt	$	24,738	$	—	$	24,738	$	—

			Fair Value Measurements Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
December 31, 2016	Carrying		for Identical		Observable Inputs		Inputs
In thousands	Amount		Assets (Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and cash equivalents	$	1,013	$	1,013	$	—	$	—

Financial liabilities
Current portion of long-term debt	$	1,250	$	—	$	1,250	$	—
Long-term debt	$	24,189	$	—	$	24,189	$	—

			Fair Value Measurements Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
October 1, 2016	Carrying		for Identical		Observable Inputs		Inputs
In thousands	Amount		Assets (Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and cash equivalents	$	4,306	$	4,306	$	—	$	—
Marketable securities	$	395	$	395	$	—	$	—

Financial liabilities
Current portion of long-term debt	$	1,405	$	—	$	1,405	$	—
Long-term debt	$	35,999	$	—	$	35,999	$	—

- 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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