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Fair Value Measurements
 12 Months Ended
Sep. 27, 2013
Fair Value Measurements [Abstract]  
Fair Value Measurements

4FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established based on three levels of inputs, of which the first two are considered observable and the last unobservable.

 

·

Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets.

·

Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments.

·

Level 3 - Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.

 

 

 

 

 

 

 

 

 

The following table summarizes the Company's financial assets measured at fair value as of September 27, 2013:

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Assets:

 

 

 

 

 

 

 

 

    Rabbi trust assets

$
8,948 

$

 -

$

 -

$
8,948 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table summarizes the Company's financial assets measured at fair value as of September 28, 2012:

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Assets:

 

 

 

 

 

 

 

 

    Rabbi trust assets

$
7,289 

$

 -

$

 -

$
7,289 

    Foreign currency forward contracts

 

 -

 
173 

 

 -

 
173 

 

 

 

 

 

 

 

 

 

 

Rabbi trust assets are classified as trading securities and are comprised of marketable debt and equity securities that are marked to fair value based on unadjusted quoted prices in active markets.  The rabbi trust assets are used to fund amounts the Company owes to certain officers and other employees under the Company’s non-qualified deferred compensation plan.  The mark-to-market adjustments are recorded in “Other (income) expense, net” in the Consolidated Statements of Operations.

 

The fair value of the foreign exchange forward contract reported above was measured using the market value approach based on foreign currency exchange rates and the notional amount of the forward contract. The mark-to-market adjustments are recorded in “Other (income) expense, net.”  See Note 2 of the Notes to Consolidated Financial Statements for information regarding the fair value of the Company’s debt instruments.  See Note 3 of the Notes to Consolidated Financial Statements for information regarding the Company’s usage of derivative instruments.

 

 

 

 

 

 

 

 

 

 

The effect of changes in the fair value of financial instruments on the Consolidated Statements of Operations for the years ended September 27, 2013, September 28, 2012 and September 30, 2011, was:

 

 

 

 

 

 

 

 

 

Location of (income) loss recognized in Statement of Operations

2013

2012

2011

 

 

 

 

 

 

 

 

Rabbi trust assets

Other (income) expense, net

$
(1,013)

$
(1,153)

$
382 

Foreign currency forward contracts

Other (income) expense, net

 
13 

 
306 

 
(361)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain assets and liabilities are measured at fair value on a non-recurring basis in periods subsequent to their initial recognition. 

 

During 2012, the Company recorded impairment on a trademark held by the Marine Electronics business, reducing its fair value to $0.  A $609 charge was included in “Administrative management, finance and information systems” expenses in the Marine Electronics segment related to this impairment during 2012.  During 2011, the Company recognized impairment of $334 on part of its facility in Ferndale, Washington in order to write the asset down to its estimated fair value of approximately $1,300.  The fair value of the facility was determined using a market approach based on recent selling prices of comparable properties. The impairment charge was included in “Other (income) expense, net” in the Company’s accompanying Consolidated Statements of Operations in the Watercraft segment.  This facility was sold in 2012 for approximately its fair value.  No assets or liabilities were measured at fair value on a non-recurring basis in 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table summarizes the Company's assets measured at fair value on a non-recurring basis as of September 28, 2012 and the losses recognized as a result of this measurement in 2012:

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Losses incurred

 

 

 

 

 

 

 

 

 

Other Intangibles

$

 -

$

 -

$

 -

$
609