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Note 17 - Financial Instruments and Fair Value Measurements
 12 Months Ended
Dec. 28, 2014
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

17. Financial Instruments and Fair Value Measurements


Overview


Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:


 

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Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.


 

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Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.


 

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Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.


The Company’s financial instruments consist of cash and cash equivalents, short-term investments, cost method investments, accounts payable and debt.


For the Company’s cash and cash equivalents, accounts payable and current portion of debt, the carrying amounts approximate fair value because of the short duration of these financial instruments. As of December 28, 2014 and December 29, 2013, the fair value of the Company’s long-term debt approximates the carrying value based upon the Company’s expected borrowing rate for debt with similar remaining maturities and comparable risk.


Balances Measuredat Fair Valueon a Recurring Basis


The following table (in thousands) shows certain of the Company’s financial instruments measured at fair value on a recurring basis


using Level 2 inputs, as they are priced principally by independent pricing services using observable inputs:


   

December 28, 2014

   

December 29, 2013

 

Short-Term Investments

               

Commercial paper

  $ 23,984     $ 21,993  

Corporate bonds

    21,693       27,106  

Certificates of deposit

    961       —  

Balances Disclosed at Fair Value


Cost Method Investment – Investment in Rock Ohio Ventures, LLC – The fair value of the Company’s cost method investment in Rock Ohio Ventures was estimated to be approximately $0.8 million as of December 28, 2014 based on the negotiated selling price of this investment. Effective January 25, 2015, Lakes sold its investment in Rock Ohio Ventures for approximately $0.8 million.


The fair value of the Company’s investment in Rock Ohio Ventures was not estimated as of December 29, 2013, as there were no events or changes in circumstances that may have had a significant adverse effect on the fair value of the investment, and Lakes’ management determined that it was not practicable or necessary to estimate the fair value of the investment (see note 8, Investment in Rock Ohio Ventures, LLC).


Cost Method Investment – Investment in Dania Entertainment Center, LLC - The fair value of the Company’s investment in Dania Entertainment Center, LLC was considered impracticable to estimate as of December 29, 2013 without incurring excessive costs relative to the materiality of the investment. This investment was sold during fiscal 2014 (see note 9, Investment in Dania Entertainment Holdings, LLC).