Fair Value Measurements

3 Months Ended

Mar. 30, 2012

Fair Value Measurements

5. Fair Value Measurements

ASC 820 establishes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the third is considered unobservable:

• Level 1: Quoted prices for identical assets or liabilities in active markets which the Company can access.

• Level 2: Observable inputs other than those described in Level 1.

• Level 3: Unobservable inputs.

Cash equivalents are money market accounts, which represent the only asset the Company measures at fair value on a recurring basis. Cash equivalents of $1.8 million and $4.1 million as of March 30, 2012 and December 31, 2011, respectively, are classified as Level 1 in the fair value hierarchy because they are valued at quoted prices in active markets. The fair values of cash, accounts receivable, income taxes receivable, accounts payable, income taxes payable, and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. See Note 8 to Consolidated Financial Statements for discussion of the estimated fair value of the Company’s debt and Note 12 for discussion of the fair value of the Company’s restructuring estimates.