Quarterly report pursuant to Section 13 or 15(d)

Fair Value Of Financial Instruments

 v2.3.0.11
Fair Value Of Financial Instruments
 6 Months Ended
Jul. 02, 2011
Fair Value Of Financial Instruments  
Fair Value Of Financial Instruments
11. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses the three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The Company held available-for-sale securities with an aggregate fair value of $12,866 and $13,352 at July 2, 2011, and July 3, 2010, respectively. The Company, on a recurring basis, measures available-for-sale securities at fair value using quoted prices in active markets. The net unrealized holding gain amounted to $81 at July 2, 2011, and a net unrealized holding loss of $54 at July 3, 2010. In addition, the Company reports deferred director stock units and phantom stock units as a liability. These liabilities, on a recurring basis, are measured at fair value using quoted prices in the active market. The Company's liability was $1,635 and $676, at July 2, 2011, and July 3, 2010, respectively. The Company recognized expense related to those liabilities of $101 for the period ended July 2, 2011, and a net gain related to those expenses of $50 for the period ended July 3, 2010.

The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the six months ended July 2, 2011, and July 3, 2010.

Assets measured at fair value on a recurring basis include the following as of July 2, 2011:

 

            Fair Value Measurements at Reporting Date Using  
Description    July 2, 2011      Quoted Prices in
Active Markets
(Level 1)		     

Significant Other
Observable
Inputs

(Level 2)

     

Significant
Unobservable
Inputs

(Level 3)

  

Available-for-sale securities

    $ 12,866       $ 12,866       $ —         $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  
            Fair Value Measurements at Reporting Date Using  
            Quoted Prices in
Active Markets		      Significant Other
Observable
Inputs		      Significant
Unobservable
Inputs		  
Description    July 2, 2011      (Level 1)      (Level 2)      (Level 3)  

Deferred director stock units

    $ 1,562       $ 1,562       $ —         $ —     

Phantom stock units

      73         73         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,635       $ 1,635       $ —         $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payable, accrued expenses and other liabilities approximate fair value based on their short-term status.