Fair Value Measurements

9 Months Ended

Sep. 27, 2013

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. There have been no transfers between fair value measurement levels during the nine months ended September 27, 2013 and September 28, 2012. Any transfers between fair value measurement levels would be recorded on the actual date of the event or change in circumstances that caused the transfer. The fair value of these certain financial assets and liabilities was determined using the following inputs at September 27, 2013:

	Fair Value Measurements at Reporting Date Using
(In thousands)	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⁾	$	56,938	$	56,938	$	-	$	-

Fixed income available
for sale securities ⁽²⁾		13,296		-		13,296		-

Fixed income trading
securities held in deferred
compensation plan ⁽³⁾		9,921		9,921		-		-

Equity trading securities
held in deferred
compensation plan ⁽³⁾		25,578		25,578		-		-

Total	$	105,733	$	92,437	$	13,296	$	-

Liabilities
Deferred compensation
plan ⁽⁴⁾		35,431		35,431		-		-

Total	$	35,431	$	35,431	$	-	$	-

⁽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 28, 2012:

	Fair Value Measurements at Reporting Date Using
(In thousands)	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⁾	$	49,134	$	49,134	$	-	$	-

Fixed income available
for sale securities ⁽²⁾		20,881		-		20,881		-

Fixed income trading
securities held in deferred
compensation plan ⁽³⁾		9,911		9,911		-		-

Equity trading securities
held in deferred
compensation plan ⁽³⁾		17,178		17,178		-		-

Total	$	97,104	$	76,223	$	20,881	$	-

Liabilities
Deferred compensation
plan ⁽⁴⁾		26,984		26,984		-		-

Total	$	26,984	$	26,984	$	-	$	-

⁽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 27, 2013 and December 28, 2012 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.

Cash, cash equivalents and short-term investments consisted of the following as of September 27, 2013:

		Amortized	Unrealized			Unrealized		Estimated
(In thousands)	Cost		Gains		Losses		Fair Value

Classified as current assets:
Cash	$	64,809	$	-	$	-	$	64,809

Cash equivalents:
Money market securities		56,938		-		-		56,938
Total cash equivalents		56,938		-		-		56,938
Total cash and cash equivalents		121,747		-		-		121,747

Short-term investments:
State and municipal bonds		13,299		3		(6)		13,296
Total short-term investments		13,299		3		(6)		13,296

Total cash, cash equivalents
and short-term investments	$	135,046	$	3	$	(6)	$	135,043

There were no securities in a continuous unrealized loss position for more than 12 months as of September 27, 2013.

Cash, cash equivalents and short-term investments consisted of the following as of December 28, 2012:

		Amortized		Unrealized		Unrealized		Estimated
(In thousands)	Cost		Gains		Losses		Fair Value

Classified as current assets:
Cash	$	64,134	$	-	$	-	$	64,134

Cash equivalents:
Money market securities		49,134		-		-		49,134
Total cash equivalents		49,134		-		-		49,134
Total cash and cash equivalents		113,268		-		-		113,268

Short-term investments:
State and municipal bonds		20,841		41		(1)		20,881
Total short-term investments		20,841		41		(1)		20,881

Total cash, cash equivalents
and short-term investments	$	134,109	$	41	$	(1)	$	134,149

The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of September 27, 2013:

	Amortized		Estimated
(In thousands)	Cost		Fair Value

Due within one year	$	6,069	$	6,066
Due between one and two years		6,357		6,357
Due between two and three years		873		873
Total	$	13,299	$	13,296

At September 27, 2013 and December 28, 2012, the Company did not have any assets or liabilities valued using significant unobservable inputs.

The following financial instruments are not measured at fair value on the Company's consolidated balance sheet at September 27, 2013 and December 28, 2012, but require disclosure of their fair values: accounts receivable, other assets and accounts payable. The estimated fair value of such instruments at September 27, 2013 and December 28, 2012 approximates their carrying value as reported on the consolidated balance sheet. The fair values of such financial instruments are determined using the income approach based on the present value of estimated future cash flows. There have been no changes in the Company’s valuation technique during fiscal 2013. The fair value of all of these instruments would be categorized as Level 2 of the fair value hierarchy.

There were no other-than-temporary impairments or credit losses related to available-for-sale securities during the nine months ended September 27, 2013 and September 28, 2012.

- 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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