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Fair Values of Financial Instruments

12 Months Ended

Sep. 29, 2012

Fair Values of Financial Instruments [Abstract]

14. Fair Values of Financial Instruments

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash and cash equivalents: The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents approximate their fair values.

Receivables: The carrying amounts reported in the Consolidated Balance Sheets for receivables approximate their fair values.

Restricted Investments: The carrying amounts reported in the Consolidated Balance Sheets for restricted investments approximate their fair values.

The fair value of the Company’s debt is estimated using valuation techniques under the accounting guidance related to fair value measurements based on observable and unobservable inputs. Observable inputs reflect readily available data from independent sources, while unobservable inputs reflect the Company’s market assumptions. These inputs are classified into the following hierarchy:


Level 1 Inputs—		Quoted prices for identical assets or liabilities in active markets.

Level 2 Inputs—		Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs—		Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation.

The carrying amount and fair value of the Company’s debt at June 23, 2012 is as follows (in thousands):


	Carrying Amount		Fair Value		Fair Value Measurements
Senior Notes, net of unamortized original issue discount	$	563,551	$	618,844		Level 2
Recovery Zone Facility Bonds		99,740		99,740		Level 2
Real estate and equipment notes payable		131,757		132,362		Level 2
Line of credit payable		40,121		40,121		Level 2

Total debt	$	835,169	$	891,066

The fair values for Level 2 measurements were determined primarily using market yields and taking into consideration the underlying terms of the debt.