Fair Value of Financial Instruments

6 Months Ended

May 27, 2012

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 11: Fair Value of Financial Instruments

        For assets and liabilities measured at fair value on a recurring basis during the period, the Company uses an income approach to value the assets and liabilities for outstanding foreign currency derivative contracts discussed above in Note 10. These contracts are valued using an income approach, which consists of a discounted cash flow model that takes into account the present value of future cash flows under the terms of the contracts by using current market information available as of the reporting date such as prevailing interest rates and foreign currency spot and forward rates. We minimize derivative credit risk by transacting with highly rated counterparties. There were no non-financial assets or liabilities requiring initial measurement or subsequent remeasurement during the three or six months ended May 27, 2012 or May 29, 2011. The following table provides a summary of the fair values of assets and liabilities (in thousands):

				Fair Value Measurements at May 27, 2012 Using
	May 27, 2012			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange and commodity derivative assets	$	662		$	—	$	662		$	—
Foreign exchange and commodity derivative liabilities		(77	)		—		(77	)		—
Total	$	585		$	—	$	585		$	—

				Fair Value Measurements at November 27, 2011 Using
	November 27, 2011			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Foreign exchange and commodity derivative assets	$	1,379		$	—	$	1,379		$	—
Foreign exchange and commodity derivative liabilities		(34	)		—		(34	)		—
Embedded foreign currency derivative in lease agreement		56			—		—			56
Total	$	1,401		$	—	$	1,345		$	56

        Due to the short maturity of cash and equivalents, accounts receivable, accounts payable and accrued expenses, their carrying values approximate fair value. The fair value of long term debt which is valued using Level 1 inputs based on quoted market prices, was as follows at May 27, 2012 (in thousands):

Senior Secured Notes	$	293,301
Convertible Notes		397,670
Senior Subordinated Notes		263,566