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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 28, 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 December 28, 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 and foreign currency derivative 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:
 
 
December 28, 2014
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In thousands)
Derivative assets - commodity futures instruments
 
$
8,416

 
$
—

 
$
—

 
$
8,416

Derivative assets - foreign currency futures instruments
 
2,563

 
—

 
—

 
2,563

Deferred compensation plan assets
 
6,753

 
—

 
—

 
6,753

Derivative liabilities - commodity futures instruments
 
(8,580
)
 
—

 
—

 
(8,580
)
Derivative liabilities - commodity options instruments
 
(14,103
)
 
—

 
—

 
(14,103
)
Long-term debt and other borrowing arrangements:
 
 
 
 
 
 
 
 
Public bonds and notes
 
(3,979
)
 
—

 
—

 
(3,979
)
Capitalized lease obligations
 
—

 
—

 
(587
)
 
(587
)
 
 
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 futures 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 and revolver
 
—

 
—

 
(424,650
)
 
(424,650
)
Capitalized lease obligations
 
—

 
—

 
(704
)
 
(704
)
 
 
Term Notes and Revolver
 
Capitalized Lease Obligations
 
 
2014
 
2013
 
2014
 
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

 
135

 
124

Change in fair value inputs
 
14,551

 
9,194

 
(18
)
 
52

Balance, end of period
 
$
—

 
$
(424,650
)
 
$
(587
)
 
$
(704
)

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 Consolidated Balance Sheets consisted of the following:
 
 
December 28, 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
 
8,416

 
8,416

 
1,494

 
1,494

 
6
Derivative assets - commodity options instruments
 
—

 
—

 
1,395

 
1,395

 
6
Derivative assets - foreign currency futures instruments
 
2,563

 
2,563

 
1,214

 
1,214

 
6
Deferred compensation plan assets
 
6,753

 
6,753

 
7,208

 
7,208

 
 
Derivative liabilities - commodity futures instruments
 
(8,580
)
 
(8,580
)
 
(1,728
)
 
(1,728
)
 
6
Derivative liabilities - commodity options instruments
 
(14,103
)
 
(14,103
)
 
—

 
—

 
6
Long-term debt and other borrowing arrangements
 
(4,242
)
 
(4,566
)
 
(912,233
)
 
(977,946
)
 
10

The carrying amounts of our cash and cash equivalents, derivative trading accounts' margin cash, restricted cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities. 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 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 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 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 December 28, 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. At December 28, 2014, long-lived assets held for sale had a fair value of $1.4 million. These assets are classified as Level 2 assets because their fair value can be corroborated based on observable market data.