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Fair Value Measurements
 12 Months Ended
Dec. 29, 2012
Fair Value Measurements  
Fair Value Measurements

10. Fair Value Measurements

        The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

        ASC 820, Fair Value Measurement and Disclosures ("ASC 820"), establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

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

    •
    Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

    •
    Level 3—Unobservable inputs based on the Company's assumptions.

        ASC 820 requires the use of observable market data if such data is available without undue cost and effort.

        The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 29, 2012 (in thousands):

 
   Fair Value at December 29, 2012  
 
   Level 1   Level 2   Level 3   Total  

Assets:

                          

Securities available for sale:

                          

Investments in publicly traded equity securities

   $ 127   $ 0   $ 0   $ 127  

Forward contracts

     0     2,576     0     2,576  

Deferred compensation plan assets:

                          

Investment in publicly traded mutual funds

     3,188     0     0     3,188  
                   

Total

   $ 3,315   $ 2,576   $ 0   $ 5,891  
                   

Liabilities:

                          

Forward contracts

   $ 0   $ 5,142   $ 0   $ 5,142  
                   

Total

   $ 0   $ 5,142   $ 0   $ 5,142  
                   

        The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 (in thousands):

 
   Fair Value at December 31, 2011  
 
   Level 1   Level 2   Level 3   Total  

Assets:

                          

Securities available for sale:

                          

Investment in publicly traded equity securities

   $ 155   $ 0   $ 0   $ 155  

Forward contracts

     0     10,614     0     10,614  

Deferred compensation plan assets:

                          

Investment in publicly traded mutual funds

     2,897     0     0     2,897  
                   

Total

   $ 3,052   $ 10,614   $ 0   $ 13,666  
                   

Liabilities:

                          

Forward contracts

   $ 0   $ 3,586   $ 0   $ 3,586  
                   

Total

   $ 0   $ 3,586   $ 0   $ 3,586  
                   

        The fair values of the Company's securities available for sale and deferred compensation plan assets are based on quoted prices. The deferred compensation plan assets are recorded in intangible and other assets—net in the Company's consolidated balance sheets. The fair values of the Company's forward contracts are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates.

        The Company has evaluated its short-term and long-term debt and believes, based on the interest rates, related terms and maturities, that the fair values of such instruments approximate their carrying amounts. As of December 29, 2012 and December 31, 2011, the carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximated their values due to the short-term maturities of these accounts.

        The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a nonrecurring basis as of December 29, 2012 (in thousands):

 
    
   Fair Value Measurements Using    
  
 
   For the
Fiscal Year Ended
December 29, 2012		   Total
Losses		  
 
   Level 1   Level 2   Level 3  

Assets:

                                

Specific Company-owned stores

   $ 67   $ 0   $ 0   $ 67   $ (1,231 )

        The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2011 (in thousands):

 
    
   Fair Value Measurements Using    
  
 
   For the
Fiscal Year Ended
December 31, 2011		   Total
Losses		  
 
   Level 1   Level 2   Level 3  

Assets:

                                

Specific Company-owned stores

   $ 51   $ 0   $ 0   $ 51   $ (957 )

        In accordance with the provisions of ASC 360, Property, Plant and Equipment, property, plant and equipment—net with a carrying amount of $1.2 million related to Company-owned retail store leasehold improvements, fixturing, computer software and computer hardware was written down to a fair value of $0.1 million, resulting in an impairment charge of $1.2 million for fiscal year 2012.

        In fiscal year 2011, property, plant and equipment—net with a carrying amount of $1.0 million related to Company-owned retail store leasehold improvements, fixturing, computer software and computer hardware was written down to a fair value of $0.1 million, resulting in an impairment charge of $1.0 million for fiscal year 2011.

        The fair values of assets related to the Company-owned retail stores were determined using Level 3 inputs. If undiscounted cash flows estimated to be generated through the operation of Company-owned retail stores are less than the carrying value of the underlying assets, impairment losses are recorded. Impairment expenses related to Company-owned retail stores are recorded in selling and distribution expense within the Direct to consumer segment.