NOTE G - FINANCIAL INSTRUMENTS

The following table details the United States dollar equivalent of foreign exchange contracts outstanding at December 29, 2012 and December 31, 2011, along with maturity dates and any unrealized gain (loss). The net unrealized gain (loss) is recorded in SG&A in the consolidated statements of income, since the Company did not apply hedge accounting to these contracts.


(THOUSANDS OF DOLLARS)	CONTRACT AMOUNT U.S. $ EQUIVALENT		MATURITY DATE	UNREALIZED GROSS GAIN (LOSS)
DECEMBER 29, 2012
Euro	$	4,475	2013	$	(118)
Sterling		24	2013		(24)
Japanese Yen		8,865	2013		208
Hong Kong Dollar		3,045	2013		-
Taiwan Dollar		1,567	2013		-
Mexican Peso		1,522	2013		(13)
Chinese Renminbi		4,000	2013		49
Singapore Dollar		551	2013		(1)
Canadian Dollar		501	2013		(1)
Total	$	24,550		$	100


DECEMBER 31, 2011
Euro	$	10,642	2012	$	151
Sterling		4,657	2012		(5)
Japanese Yen		12,006	2012		(112)
Hong Kong Dollar		4,569	2012		(16)
Taiwan Dollar		1,526	2012		(13)
Mexican Peso		1,020	2012		(13)
Chinese Renminbi		5,000	2012		32
Total	$	39,420		$	24

Foreign currency exchange gains (losses) that are included in SG&A expenses approximated $0.3 million, ($1.7) million and ($1.2) million in fiscal 2012, 2011 and 2010, respectively.

In the third quarter of 2010, the Company entered into a forward interest rate swap agreement with an initial notional amount of $15.0 million and a term of three years. This swap effectively fixes the interest rate on a portion of the Company’s line of credit at approximately 1.2%. The item being hedged is the first interest payment to be made on $15.0 million of principal expected to occur each month beginning March 31, 2011. The Company measures hedge ineffectiveness using the “hypothetical” derivative method. This swap has been designated a cash flow hedge and the effect of the mark-to-market valuation is recorded as an adjustment, net of tax, to accumulated other comprehensive loss. From inception to December 29, 2012, the effect of the mark-to-market valuations, net of tax, was an unrealized loss of approximately $0.1 million and is included as a component of accumulated other comprehensive loss.

The fair value of forward foreign exchange contracts, based on quoted spot exchange rates, are reported in other current assets or accrued expenses and other liabilities. The fair value of cash and cash equivalents approximates the recorded amounts, due to the short period of time to maturity. The carrying amount of long-term debt approximates fair value as a result of the variable interest rate. The fair value of the interest rate swap agreements, based upon market observable data, was ($0.1) million at December 29, 2012 and ($0.2) million at December 31, 2011 and was reported in accrued expenses and other liabilities.