Fair Value Measurements

9 Months Ended

Sep. 28, 2012

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 September 28, 2012 (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⁾	$	48,018	$	48,018	$	-	$	-

Fixed income available for sale securities ⁽²⁾		22,086		-		22,086		-

Fixed income trading securities held in deferred compensation plan ⁽³⁾		9,652		9,652		-		-

Equity trading securities held in deferred compensation plan ⁽³⁾		16,933		16,933		-		-

Total	$	96,689	$	74,603	$	22,086	$	-

Liabilities
Deferred compensation plan ⁽⁴⁾		26,468		26,468		-		-

Total	$	26,468	$	26,468	$	-	$	-

⁽¹⁾

Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

⁽²⁾

Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet.

⁽³⁾

Included in other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

⁽⁴⁾

Included in accrued liabilities and deferred compensation on the Company’s unaudited condensed consolidated balance sheet.

The fair value of these certain financial assets and liabilities was determined using the following inputs at December 30, 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
Money market securities ⁽¹⁾	$	44,448	$	44,448	$	-	$	-

Fixed income available for sale securities ⁽²⁾		25,260		-		25,260		-

Fixed income trading securities held in deferred compensation plan ⁽³⁾		7,456		7,456		-		-

Equity trading securities held in deferred compensation plan ⁽³⁾		12,626		12,626		-		-

Total	$	89,790	$	64,530	$	25,260	$	-

Liabilities
Deferred compensation plan ⁽⁴⁾		19,927		19,927		-		-

Total	$	19,927	$	19,927	$	-	$	-

⁽¹⁾

Included in cash and cash equivalents on the Company’s consolidated balance sheet.

⁽²⁾

Included in short-term investments on the Company’s consolidated balance sheet.

⁽³⁾

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

⁽⁴⁾

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

Fixed income available-for-sale securities as of September 28, 2012 and December 30, 2011 represent primarily obligations of state and local government agencies. 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 September 28, 2012, the Company held state and municipal bonds with a fair value of $22,086,000 and an amortized cost of $22,008,000. The unrealized gain recorded in accumulated other comprehensive income was $78,000. There were no securities in a continuous unrealized loss position for more than twelve months. As of September 28, 2012, the fair value and amortized cost of available-for-sale securities with contractual maturities of less than one year were $20,548,000 and $20,476,000, respectively. As of September 28, 2012, the fair value and amortized cost of available-for-sale securities with contractual maturities of between one and two years were $1,538,000 and $1,532,000, respectively.

As of December 30, 2011, the Company held state and municipal bonds with a fair value of $25,260,000 and an amortized cost of $25,173,000.

At September 28, 2012 and December 30, 2011, the Company did not have any assets valued using significant unobservable inputs.

- 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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+ Details