Fair Value Measurement

6 Months Ended

Jul. 02, 2011

Notes to Financial Statements [Abstract]

Fair Value Measurements

Fair Value Measurements

FASB authoritative guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  The following table presents the Company’s financial instruments that are measured at fair value on a recurring basis as of July 2, 2011 and are categorized using the fair value hierarchy under FASB authoritative guidance.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value.

			Fair Value Measurements at July 2, 2011 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of dollars)	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative instruments	$	88	$	—	$	88	$	—
Total Assets	$	88	$	—	$	88	$	—
Liabilities:
Derivative instruments	$	203	$	—	$	203	$	—
Total Liabilities	$	203	$	—	$	203	$	—

Derivative assets consist of the Company’s natural gas swap, natural gas option and heating oil swap contracts, which represents the difference between observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instruments term, notional amount and credit risk.  See Note 10 Derivatives for breakdown by instrument type.

The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments.  Based upon quoted market price the Company's Notes described in Note 8 have a fair value of approximately $273.1 million and $260.6 million compared to a carrying amount of $250.0 million at July 2, 2011 and January 1, 2011, respectively. The Company's term loans and revolver as described in Note 8 have a fair value based on rates the Company believes it would pay for debt of the same remaining maturity. The Company's term loan had a fair value of approximately $59.4 million and $300.0 million compared to a carrying amount of $60.0 million and $300.0 million at July 2, 2011 and January 1, 2011, respectively. The Company's revolver loan had a fair value of approximately $21.7 million and $160.0 million compared to a carrying amount of $20.0 million and $160.0 million at July 2, 2011 and January 1, 2011, respectively. The carrying amount for the Company's other debt is not deemed to be significantly different than the amount recorded and all other financial instruments have been recorded at fair value.