Fair Value Measurements

6 Months Ended

Jul. 02, 2011

Fair Value Measurements

Fair Value Measurements

NOTE 4 FAIR VALUE MEASUREMENTS

The Company's financial instruments include cash and cash equivalents, marketable securities, pension assets not owned by plan, short-term borrowings and long-term debt. The carrying amount of cash and cash equivalents and lines of credit, included in short-term borrowings, approximates fair value due to the short-term maturities of these instruments. The fair values of marketable securities and pension assets not owned by plan were estimated based on quoted market prices. The fair value of the Company's convertible subordinated notes was estimated based on the current rates for similar issues or on the current rates offered to the Company for debt of similar remaining maturities. Such notes were included in short-term borrowings as of July 2, 2011 and in long-term debt as of January 1, 2011. Long-term debt as of July 2, 2011 consisted of private placement bonds issued through a Japanese bank and the fair value was estimated based on current rates in Japan for debt with a similar maturity.

The estimated fair values of the Company's financial instruments were as follows:

	July 2, 2011				January 1, 2011
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	116,651	$	116,651	$	90,992	$	90,992
Marketable securities	$	97,580	$	97,580	$	109,192	$	109,192
Pension assets not owned by plan	$	9,608	$	9,608	$	8,628	$	8,628
Short-term borrowings	$	133,543	$	134,762	$	12,468	$	12,468
Long-term debt	$	2,474	$	2,404	$	122,042	$	123,251

ASC 820-10, Fair Value Measurements and Disclosures, requires that for any assets and liabilities stated at fair value on a recurring basis in the Company's financial statements, the fair value of such assets and liabilities be measured based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Level 1 asset and liability values are derived from quoted prices in active markets for identical assets and liabilities and Level 2 asset and liability values are derived from quoted prices in inactive markets. The Company's assets measured at fair value on a recurring basis are categorized in the table below based upon their level within the fair value hierarchy.

(In thousands)	July 2, 2011		Fair Value Measurements at Reporting Date Using
Description			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents:
Cash	$	50,042	$	50,042	$	—	$	—
Money market funds		43,806		43,806		—		—
Short-term investments		22,803		—		22,803		—
		116,651		93,848		22,803		—
Marketable securities:
Equity securities	$	602	$	602	$	—	$	—
Certificates of deposit		7,194		—		7,194		—
Corporate debt securities		89,784		37,888		51,896		—
		97,580		38,490		59,090		—
Pension assets not owned by plan		9,608		—		9,608		—
	$	223,839	$	132,338	$	91,501	$	—