FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 29, 2013

2. 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 29, 2013 and December 30, 2012, 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 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:
Senior unsecured notes		552,592			-			-			552,592
Term notes		-			-			424,650			424,650
Capitalized lease obligations		-			-			704			704

	December 30, 2012
	Level 1			Level 2			Level 3			Total
	(In thousands)
Derivative assets - commodity futures instruments	$	1,821		$	-		$	-		$	1,821
Deferred compensation plan assets		7,591			-			-			7,591
Derivative liabilities - commodity futures instruments		(1,530	)		-			-			(1,530	)
Long-term debt and other borrowing arrangements:
Senior unsecured notes		521,415			-			-			521,415
Term notes and revolver		-			-			686,435			686,435
Capitalized lease obligations		-			-			880			880

	Term Notes and Revolver						Capitalized Lease Obligations
	2013			2012			2013			2012
Change in Value of Level 3 Liabilities:	(In thousands)
Balance, beginning of period	$	686,435		$	945,927		$	880		$	1,005
Borrowings		509,500			1,332,300			-			-
Payments		(762,091	)		(1,591,498	)		(124	)		(114	)
Change in fair value inputs		(9,194	)		(294	)		(52	)		(11	)
Balance, end of period	$	424,650		$	686,435		$	704		$	880

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 29, 2013						December 30, 2012
	Carrying			Fair			Carrying			Fair			Note
	Amount			Value			Amount			Value			Reference
	(In thousands)
Short-term investments in available-for-sale securities	$	96,902		$	96,902		$	-		$	-			5
Derivative assets - commodity futures instruments		1,494			1,494			1,821			1,821			6
Derivative assets - commodity options instruments		1,395			1,395			-			-			6
Derivative assets - foreign currency futures instruments		1,214			1,214			-			-			6
Deferred compensation plan assets		7,208			7,208			7,591			7,591
Derivative liabilities - commodity futures instruments		(1,728	)		(1,728	)		(1,530	)		(1,530	)		6
Long-term debt and other borrowing arrangements		(912,233	)		(977,946	)		(1,164,756	)		(1,208,730	)		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 29, 2013 or December 30, 2012, 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. Certain long-lived assets held for sale with a carrying amount of $27.5 million were written down to their fair value of $23.9 million, resulting in a loss of $3.6 million recorded in earnings during 2013. These assets are classified as Level 2 assets because their fair value can be corroborated based on observable market data.

- 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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