FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 29, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities measured at fair value must be categorized into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation:

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2	Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or
Level 3	Unobservable inputs, such as discounted cash flow models or valuations.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety.

As of June 29, 2014 and December 29, 2013, the Company held certain items that were required to be measured at fair value on a recurring basis. These included derivative assets and liabilities and deferred compensation plan assets. Derivative assets and liabilities consist of long and short positions on exchange-traded commodity futures instruments. The Company maintains nonqualified deferred compensation plans for executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The following items were measured at fair value on a recurring basis:

	June 29, 2014
	Level 1			Level 2			Level 3		Total
	(In thousands)
Derivative assets - commodity futures instruments	$	4,126		$	—		$	—	$	4,126
Derivative assets - commodity options instruments	—			16			—		16
Deferred compensation plan assets	7,189			—			—		7,189
Derivative liabilities - commodity futures instruments	(3,928		)	—			—		(3,928		)
Derivative liabilities - commodity options instruments	—			(4,238		)	—		(4,238		)
Derivative liabilities - foreign currency instruments	(396		)	—			—		(396		)
Long-term debt and other borrowing arrangements:
Public bonds and notes	535,404			—			—		535,404
Capitalized lease obligations	—			—			672		672

	December 29, 2013
	Level 1			Level 2		Level 3		Total
	(In thousands)
Short-term investments in available-for-sale securities	$	—		$	96,902	$	—	$	96,902
Derivative assets - commodity futures instruments	1,494			—		—		1,494
Derivative assets - commodity options instruments	—			1,395		—		1,395
Derivative assets - foreign currency instruments	1,214			—		—		1,214
Deferred compensation plan assets	7,208			—		—		7,208
Derivative liabilities - commodity futures instruments	(1,728		)	—		—		(1,728		)
Long-term debt and other borrowing arrangements:
Public bonds and notes	552,592			—		—		552,592
Term notes	—			—		424,650		424,650
Capitalized lease obligations	—			—		704		704

	Term Notes and Revolver						Capitalized Lease Obligations
	Twenty-Six Weeks Ended						Twenty-Six Weeks Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Change in Value of Level 3 Liabilities:	(In thousands)
Balance, beginning of period	$	424,650		$	686,435		$	704		$	880
Borrowings	—			509,500			—			—
Payments	(410,099		)	(762,091		)	(66		)	(61		)
Change in fair value inputs	(14,551		)	(7,620		)	34			(32		)
Balance, end of period	$	—		$	426,224		$	672		$	787

The valuation of financial assets and liabilities classified in Level 1 is determined using a market approach, taking into account current interest rates, creditworthiness, and liquidity risks in relation to current market conditions, and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of financial assets and liabilities in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for substantially the full term of the financial instrument. The valuation of financial assets in Level 3 is determined using an income approach based on unobservable inputs such as discounted cash flow models or valuations.

In addition to the fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The methods and significant assumptions used to estimate the fair value of financial instruments and any changes in methods or significant assumptions from prior periods are also required to be disclosed. The carrying amounts and estimated fair values of financial assets and liabilities recorded in the Condensed Consolidated Balance Sheets consisted of the following:

	June 29, 2014						December 29, 2013
	Carrying Amount			Fair Value			Carrying Amount			Fair Value			Note Reference
				(In thousands)
Short-term investments in available-for-sale securities	$	—		$	—		$	96,902		$	96,902		5
Derivative assets - commodity futures instruments	4,126			4,126			1,494			1,494			6
Derivative assets - commodity options instruments	16			16			1,395			1,395			6
Derivative assets - foreign currency instruments	—			—			1,214			1,214			6
Deferred compensation plan assets	7,189			7,189			7,208			7,208
Derivative liabilities - commodity futures instruments	(3,928		)	(3,928		)	(1,728		)	(1,728		)	6
Derivative liabilities - commodity options instruments	(4,238		)	(4,238		)	—			—			6
Derivative liabilities - foreign currency instruments	(396		)	(396		)	—			—			6
Long-term debt and other borrowing arrangements	502,296			536,077			(912,233		)	(977,946		)	9

Derivative assets were recorded at fair value based on quoted market prices and are included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet. Deferred compensation plan assets were recorded at fair value based on quoted market prices and are included in the line item Other assets in the Condensed Consolidated Balance Sheets. Derivative liabilities were recorded at fair value based on quoted market prices and are included in the line item Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheet. The fair values of the Company’s long-term debt and other borrowing arrangements were estimated by calculating the net present value of future payments for each debt obligation or borrowing by: (i) using a risk-free rate applicable for an instrument with a life similar to the remaining life of each debt obligation or borrowing plus the current estimated credit risk spread for the Company or (ii) using the quoted market price at June 29, 2014 or December 29, 2013, as applicable.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges when required by U.S. GAAP. There were no significant fair value measurement losses recognized for such assets and liabilities in the periods reported.