Fair Value Measurements

6 Months Ended

Jul. 01, 2011

Fair Value Measurements

Note 2:  Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale fixed income securities, trading fixed income and equity securities held in its deferred compensation plan and the liability associated with its deferred compensation plan.  The fair value of these certain financial assets and liabilities was determined using the following inputs at July 1, 2011 (in thousands):

	Fair Value Measurements at Reporting Date Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Fixed income available-for-sale securities (1)	$	79,804	$	54,235	$	25,569		-
Fixed income trading securities held in deferred compensation plan (2)		6,905		6,905		-		-
Equity trading securities held in deferred compensation plan (2)		13,792		13,792		-		-
Total	$	100,501	$	74,932	$	25,569	$	-
Liabilities
Deferred compensation plan (3)		20,518		20,518		-		-
Total	$	20,518	$	20,518	$	-	$	-

(1) Included in cash and cash equivalents and short-term investments on the Company’s consolidated balance sheet.

(2) Included in other current assets and deferred compensation plan assets on the Company’s consolidated balance sheet.

(3) Included in accrued liabilities and deferred compensation on the Company’s consolidated balance sheet.

The fair value of these certain financial assets and liabilities was determined using the following inputs at December 31, 2010 (in thousands):

	Fair Value Measurements at Reporting Date Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money market securities (1)	$	64,767	$	64,767	$	-	$	-
Fixed income trading securities held in deferred compensation plan (2)		4,956		4,956		-		-
Equity trading securities held in deferred compensation plan (2)		10,423		10,423		-		-
Total	$	80,146	$	80,146	$	-	$	-
Liabilities
Deferred compensation plan (3)		15,379		15,379		-		-
Total	$	15,379	$	15,379	$	-	$	-

(1) Included in cash and cash equivalents and short-term investments on the Company’s consolidated balance sheet.

(2) Included in other current assets and deferred compensation plan assets on the Company’s consolidated balance sheet.

(3) Included in accrued liabilities and deferred compensation on the Company’s consolidated balance sheet.

Fixed income available-for-sale securities at July 1, 2011 primarily represent obligations of state and local government agencies.  Included in fixed income available-for-sale securities are $54,235,000 of money market securities classified as cash equivalents.  Fixed income and equity trading securities represent mutual funds held in the Company’s deferred compensation plan.  See Note 6 for additional information about the Company’s deferred compensation plan.

As of July 1, 2011, the Company held state and municipal bonds with a fair value of $25,569,000 and an amortized cost of $25,524,000.  The unrealized gain recorded in accumulated other comprehensive income for the three months and six months ended July 1, 2011 was $56,000 and $57,000, respectively.  The unrealized loss recorded in accumulated other comprehensive income for the three months and six months ended July 1, 2011 was $11,000 and $12,000, respectively.  There were no securities in a continuous unrealized loss position for more than twelve months.  Contractual maturities for these bonds range from 0.9 to 2.25 years.  There were no available-for-sale investments as of December 31, 2010.

At July 1, 2011 and December 31, 2010, the Company did not have any assets valued using significant unobservable inputs.

The carrying amount of the Company’s accounts receivable, other assets and accounts payable approximates their fair values.  There were no other-than-temporary impairments or credit losses related to available-for-sale securities during the first six months of 2011 and 2010.