Fair Value Measurements

9 Months Ended

Oct. 01, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

(2) Fair Value Measurements

Accounting standards require disclosure of the fair value of certain assets and liabilities including information about how their fair value was determined. The determination of fair value has been grouped into three broad categories referred to as levels 1, 2 and 3. The fair market value of level 1 can be determined from quoted market prices for identical assets on an active market, level 2 from quoted prices for similar assets on an active market and for level 3 from assumptions that management makes based on the best available information.

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of October 1, 2011, January 1, 2011 and October 2, 2010:

			Fair Value Measurements Using
					Significant Other		Significant
			Quoted Prices in		Observable		Unobservable		Total
	Total Carrying		Active Markets		Inputs		Inputs		Gains
(In thousands)	Value		(Level 1)		(Level 2)		(Level 3)		(Losses)
Recurring
As of October 1, 2011
Cash and cash equivalents	$	11,466	$	11,466	$	—	$	—
As of January 1, 2011
Cash and cash equivalents	$	39,970	$	39,970	$	—	$	—
As of October 2, 2010
Cash and cash equivalents	$	25,394	$	25,394	$	—	$	—
Nonrecurring
As of January 1, 2011
Long-lived assets held and used (1)	$	180	$	—	$	—	$	180	$	(905	)

(1) Represents retail store fixed assets written down to their fair value, resulting in an impairment charge which was included in earnings for the period ended January 1, 2011.

Cash and cash equivalents, principally money market mutual funds, are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. The nonrecurring remeasurement of long-lived assets represents store assets written down to fair value using a discounted cash flow model. The loss is the amount by which the carrying amount of the assets exceeds its fair value. Key management judgments and estimates used in the valuation include sales and profitability for current and future years, and rates at which to discount projected future cash flows. The fair value measurement is classified within Level 3 of the valuation hierarchy as the valuation model inputs are not observable based on readily available market data.