Investments In Marketable Securities

12 Months Ended

Dec. 31, 2011

Investments In Marketable Securities [Abstract]

Note 5—Investments in Marketable Securities

Investments in marketable securities consist of the following at December 31, 2011 and January 1, 2011 (in thousands):


	December 31, 2011
	Amortized Cost		Net Unrealized Gain (Loss)			Fair Value
Auction and variable floating rate notes	$	500	$	(56	)	$	444


	January 1, 2011
	Amortized Cost		Net Unrealized Gain (Loss)			Fair Value
Corporate notes and bonds	$	824	$	—		$	824
Auction and variable floating rate notes		1,001		(111	)		890

	$	1,825	$	(111	)	$	1,714

Realized gains and losses on the sale of investments in marketable securities are determined using the specific identification method. Other than the sale of one of the Company's auction rate securities, described below, there were no sales of available-for-sale securities prior to maturity in 2011 or 2010.

The following table provides the breakdown of investments in marketable securities with unrealized losses at December 31, 2011 and January 1, 2011 (in thousands):


	December 31, 2011
	Continuous Unrealized Loss
	Less than 12 months				12 months or greater
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Auction and variable floating rate notes	$	—	$	—	$	444	$	(56	)


	January 1, 2011
	Continuous Unrealized Loss
	Less than 12 months				12 months or greater
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Auction and variable floating rate notes	$	—	$	—	$	890	$	(111	)

As of December 31, 2011 and January 1, 2011, the Company held one and two investments, respectively, that were in an unrealized loss position. Excluding its auction rate securities, there were no gross unrealized gains or losses on the marketable securities held at January 1, 2011.

The following tables present the amortized cost and fair value of the Company's investments in marketable securities classified as available-for-sale at December 31, 2011 and January 1, 2011 by contractual maturity (in thousands):


	December 31, 2011
	Amortized Cost		Fair Value
Maturity
Greater than two years*	$	500	$	444


	January 1, 2011
	Amortized Cost		Fair Value
Maturity
Less than one year	$	824	$	824
Greater than two years*		1,001		890

	$	1,825	$	1,714

Comprised of auction rate securities which generally have interest rate reset dates of 90 days or less but final contractual maturity dates in excess of 15 years.

Auction Rate Securities

Disruptions in the credit market continue to adversely affect the liquidity and overall market for auction rate securities. As of December 31, 2011, the Company held one investment in a Baa1 rated auction rate debt securities of a municipality with a total purchase cost of $0.5 million. An additional A3 rated debt obligation backed by pools of student loans guaranteed by the U.S. Department of Education with a total purchase cost of $0.5 million was owned at January 1, 2011, and disposed of in June 2011 for a realized loss of $59,000.

The Company does not believe that the current illiquidity of its remaining investment in auction rate securities will materially impact its ability to fund its working capital needs, capital expenditures or other business requirements. The Company, however, remains uncertain as to when full liquidity will return to the auction rate markets, whether other secondary markets will become available or when the underlying security may be called by the issuer. Given these and other uncertainties, the Company's investments in auction rate securities have been classified as long-term in the accompanying consolidated balance sheets. The Company has concluded that the estimated gross unrealized losses on these investments, which totaled approximately $56,000 and $111,000 at December 31, 2011 and January 1, 2011, respectively, are temporary because (i) the Company believes that the liquidity limitations that have occurred are due to general market conditions, (ii) the remaining auction rate security continues to be of a high credit quality and interest is paid as due and (iii) the Company has the intent and ability to hold this investment until a recovery in the market occurs.

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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