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FAIR VALUES OF FINANCIAL INSTRUMENTS
 6 Months Ended
Mar. 30, 2013
Fair Value Disclosures [Abstract]  
FAIR VALUES OF FINANCIAL INSTRUMENTS

J. FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments.

 

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 March 30, 2013 is as follows (in thousands):

 

     Carrying
Amount		      Fair Value      Fair Value
Measurements

Senior Notes, net of unamortized original issue discount

    $ 564,791       $ 602,313       Level 2

Recovery Zone Facility Bonds

      99,740         99,740       Level 2

Real estate and equipment notes payable

      133,479         133,747       Level 2

Line of credit payable

      62,000         62,000       Level 2
  

 

 

     

 

 

     

Total debt

    $ 860,010       $ 897,800      
  

 

 

     

 

 

     

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