Fair value measurement (Tables)

12 Months Ended

Dec. 25, 2011

Financial Instruments Measured at Fair Value

The financial instruments measured at fair value in the accompanying consolidated balance sheets consist of the following:

Company Owned Assets

In thousands of dollars

Fair value measurement as of Dec. 25, 2011

		September 30,		September 30,		September 30,		September 30,
	Level 1		Level 2		Level 3		Total
Assets:
Employee compensation related investments	$	17,224	$	—	$	—	$	17,224
Sundry investments		26,162		—		—		26,162

Total Assets	$	43,386	$	—	$	—	$	43,386

Liabilities:
Contingent consideration payable	$	—	$	—	$	15,808	$	15,808

Total Liabilities	$	—	$	—	$	15,808	$	15,808

Under certain acquisition agreements entered into during 2011, the company has agreed to pay the sellers earn-outs based on the financial performance of the businesses acquired. Contingent consideration payable in the table above represents the estimated fair value of future earn-outs payable under such agreements. The fair value of the contingent payments was measured based on the present value of the consideration expected to be transferred, using a discount rate commensurate with the risks associated with the cash flows. The company recognized a credit to expense of $3.8 million in its results for the year-ended December 25, 2011 related to the updating of the fair value measurement of its contingent considerations.

In thousands of dollars

Fair value measurement as of Dec. 26, 2010

		September 30,		September 30,		September 30,		September 30,
	Level 1		Level 2		Level 3		Total
Assets:
Employee compensation related investments	$	15,976	$	—	$	—	$	15,976
Sundry investments		26,902		—		—		26,902

Total Assets	$	42,878	$	—	$	—	$	42,878

Fair Value of Pension Plan Assets by Level within Fair Value Hierarchy

The following tables set forth by level within the fair value hierarchy the fair values of the company’s pension plan assets:

Pension Plan Assets/Liabilities

In thousands of dollars

Fair value measurement as of Dec. 25, 2011^(a)

		September 30,			September 30,			September 30,			September 30,
	Level 1			Level 2			Level 3			Total
Assets:
Fixed Income
U.S. government-related securities	$	—		$	50,582		$	—		$	50,582
Mortgage backed securities		—			165,651			1,271			166,922
Other government bonds		—			38,246			1,441			39,687
Corporate bonds		—			135,635			2,070			137,705
Corporate stock		613,976			999			—			614,975
Real estate		—			—			93,620			93,620
Interest in common/collective trusts
Equities		—			434,693			—			434,693
Fixed income		24,632			348,736			—			373,368
Interest in reg. invest. companies		92,840			19,927			—			112,767
Interest in 103-12 investments		—			79,432			—			79,432
Partnership/joint venture interests		—			—			128,121			128,121
Hedge funds		—			76,801			156,016			232,817
Derivative contracts		—			53,591			235			53,826

Total	$	731,448		$	1,404,293		$	382,774		$	2,518,515


	Level 1			Level 2			Level 3			Total
Liabilities:
Derivative liabilities	$	(15	)	$	(54,139	)	$	(2,517	)	$	(56,671	)
Liability to purchase
U.S. government and other securities	$	—		$	(71,876	)	$	—		$	(71,876	)

Total	$	(15	)	$	(126,015	)	$	(2,517	)	$	(128,547	)

Cash and other		18,135			665			—		$	18,800

Total net fair value of plan assets	$	749,568		$	1,278,943		$	380,257		$	2,408,768

(a)

The company uses a Dec. 31 measurement date for its retirement plans.

In thousands of dollars

Fair value measurement as of Dec. 26, 2010^(a)

		September 30,		September 30,		September 30,		September 30,
	Level 1		Level 2		Level 3		Total
Assets:
Fixed Income
U.S. government-related securities	$	—	$	99,454	$	—	$	99,454
Mortgage backed securities		—		83,070		—		83,070
Other government bonds		—		30,841		1,526		32,367
Corporate bonds		—		169,410		5,896		175,306
Corporate stock		676,777		1,338		—		678,115
Real estate		—		—		90,344		90,344
Interest in common/collective trusts
Equities		461		342,707		—		343,168
Fixed income		59,544		318,473		—		378,017
Interest in reg. invest. companies		208,023		5,398		—		213,421
Interest in 103-12 investments		—		106,947		—		106,947
Partnership/joint venture interests		—		—		117,698		117,698
Hedge funds		—		77,851		163,349		241,200
Derivative contracts		500		84,641		104		85,245

Total	$	945,305	$	1,320,130	$	378,917	$	2,644,352

		September 30,			September 30,			September 30,			September 30,
	Level 1			Level 2			Level 3			Total
Liabilities:
Derivative liabilities	$	(2,521	)	$	(87,260	)	$	(453	)	$	(90,234	)

Total	$	(2,521	)	$	(87,260	)	$	(453	)	$	(90,234	)

Cash and other		12,885			21,725			—		$	34,610

Total net fair value of plan assets	$	955,669		$	1,254,595		$	378,464		$	2,588,728

(a)

The company uses a Dec. 31 measurement date for its retirement plans.

Summary of Changes in Fair Value of Pension Plan Assets and Liabilities, Categorized as Level 3

The tables below set forth a summary of changes in the fair value of the company’s pension plan assets and liabilities, categorized as Level 3, for the fiscal year ended Dec. 25, 2011 and Dec. 26, 2010:

Pension Plan Assets/Liabilities

In thousands of dollars

For the year-ended Dec. 25, 2011

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
				Actual Return on Plan Assets
	Balance at			Relating to			Relating to			Purchases,			Transfers in
	beginning			assets still held			assets sold during			sales, and			and/or out			Balance at
	of year			at report date			the period			settlements			of Level 3⁽¹⁾			end of year
Assets:
Fixed Income
Mortgage-backed securities	$	—		$	(11	)	$	—		$	1,282		$	—		$	1,271
Other government bonds		1,526			65			—			(150	)		—			1,441
Corporate bonds		5,896			(133	)		7			205			(3,905	)		2,070
Real estate		90,344			(503	)		—			3,779			—			93,620
Partnership/joint venture interests		117,698			20,706			—			(10,283	)		—			128,121
Hedge funds		163,349			(1,632	)		(150	)		(7,151	)		1,600			156,016
Derivative contracts		104			(265	)		(76	)		(28	)		500			235

*Total*	$	378,917		$	18,227		$	(219	)	$	(12,346	)	$	(1,805	)	$	382,774

Liabilities:
Derivative liabilities	$	(453	)	$	(8	)	$	(733	)	$	1,183		$	(2,506	)	$	(2,517	)

(1)	The company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

Pension Plan Assets/Liabilities (continued)

In thousands of dollars

For the year-ended Dec. 26, 2010

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
				Actual Return on Plan Assets
	Balance at			Relating to			Relating to			Purchases,			Transfers in
	beginning			assets still held			assets sold during			sales, and			and/or out			Balance at
	of year			at report date			the period			settlements			of Level 3⁽¹⁾			end of year
Assets:
Fixed Income
Mortgage-backed securities	$	3,437		$	—		$	(17	)	$	(3,420	)	$	—		$	—
Other government bonds		—			9			—			1,517			—			1,526
Corporate bonds		15,191			466			7			(7,816	)		(1,952	)		5,896
Real estate		91,765			670			—			(2,091	)		—			90,344
Partnership/joint venture interests		95,965			22,273			—			(5,767	)		5,227			117,698
Hedge funds		173,559			17,032			—			(27,242	)		—			163,349
Derivative contracts		1,865			(228	)		(89	)		(1,444	)		—			104

*Total*	$	381,782		$	40,222		$	(99	)	$	(46,263	)	$	3,275		$	378,917

Liabilities:
Derivative liabilities	$	(3	)	$	(453	)	$	11		$	(8	)	$	—		$	(453	)

(1)	The company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

Summary of Nonfinancial Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the nonfinancial assets measured at fair value on a nonrecurring basis in the accompanying consolidated balance sheet as of Dec. 26, 2010 (none for Dec. 25, 2011):

Non-Financial Assets

In thousands of dollars

Fair value measurement as of Dec. 26, 2010

		September 30,		September 30,		September 30,		September 30,
	Level 1		Level 2		Level 3		Total:
Other intangible assets –
Quarter 4	$	—	$	—	$	9,266	$	9,266

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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