Fair Value Measurements of Assets and Liabilities

6 Months Ended

Jul. 01, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities

FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES

Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories:

• Level 1 – quoted prices in active markets for identical securities as of the reporting date;

• Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; and

• Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value.

The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Following are the disclosures related to the fair value of our financial assets and (liabilities) (in thousands):

July 1, 2012	Level 1		Level 2			Level 3		Total
Available for sale marketable securities:
U.S. treasury notes	$	15,013	$	—		$	—	$	15,013
Agency bonds	—		40,002			—		40,002
Certificates of deposit	—		2,142			—		2,142
Trading securities:
Equity securities – mutual funds	2,892		—			—		2,892
Derivative contracts, net	—		(9,326		)	—		(9,326		)
Total	$	17,905	$	32,818		$	—	$	50,723

December 31, 2011	Level 1		Level 2			Level 3		Total
Available for sale marketable securities:
Agency bonds	$	—	$	58,533		$	—	$	58,533
Commercial paper	—		5,000			—		5,000
Certificates of deposit	—		3,211			—		3,211
Trading securities:
Equity securities – mutual funds	2,810		—			—		2,810
Derivative contracts, net	—		(13,967		)	—		(13,967		)
Total	$	2,810	$	52,777		$	—	$	55,587

Agency bonds are securities backed by U.S. government-sponsored entities.

We use an income approach to value the assets and liabilities for outstanding derivative contracts using current market information as of the reporting date, such as spot rates, interest rate differentials and implied volatility.

There were no changes to our valuation techniques during the twenty-six week period endedJuly 1, 2012.

We believe the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities are a reasonable approximation of the fair value of those financial instruments because of the nature of the underlying transactions and the short-term maturities involved.

Our fixed rate convertible debt outstanding was as follows (in thousands):

	July 1, 2012
Fixed rate convertible debt on balance sheet	$	89,011
Fair value of fixed rate convertible debt	147,486

The fair value of our fixed rate convertible debt is based on open market trades.