Fair Value Measurements

3 Months Ended

Mar. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange value of an asset or a liability in an orderly transaction between market participants.  The fair value guidance outlines a valuation framework and establishes a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and disclosures.  The hierarchy consists of three levels as follows:

Level 1 - Quoted market prices in active markets for identical assets or liabilities as of the reported date;

Level 2 - Other than quoted market prices in active markets for identical assets or liabilities, quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and other than quoted prices for assets or liabilities and prices that are derived principally from or corroborated by market data by correlation or other means; and

Level 3 - Measurements using management's best estimate of fair value, where the determination of fair value requires significant management judgment or estimation.

The following table reflects the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the Company's Consolidated Condensed Balance Sheets as of March 30, 2013 and December 29, 2012:

	March 30, 2013		December 29, 2012		Fair Value Hierarchy Level
Assets:
Rabbi trust (1)	$	12,636	$	11,894	Level 2
Liabilities:
Interest rate swaps (2)	$	934	$	1,086	Level 2
Deferred compensation plan (3)	11,689		11,066		Level 1
Contingent consideration (4)	1,863		1,928		Level 3

(1) The Company maintains a rabbi trust that serves as an investment designed to offset its deferred compensation plan liability. The investment assets of the trust consist of company-owned life insurance policies for which the Company recognizes income or expense based upon changes in cash surrender value.

(2) The fair value of the interest rate swaps was obtained from external sources. The interest rate swaps were valued using observable inputs (e.g., LIBOR yield curves, credit spreads). Valuations of interest rate swaps may fluctuate considerably from period-to-period due to volatility in underlying interest rates, which are driven by market conditions and the duration of the instrument. Credit adjustments could have a significant impact on the valuations due to changes in credit ratings of the Company or its counterparties.

(3) Senior management and other highly compensated associates may defer a specified percentage of their compensation into a non-qualified deferred compensation plan. Changes in the value of the deferred compensation under this plan are recognized each period based on the fair value of the underlying measurement funds.

(4) As a result of the Colormaster and Crown Manufacturing acquisitions in 2012, the Company recorded contingent consideration liabilities at fair value. These fair value measurements were based on significant inputs not observable in the market and thus represent Level 3 measurements. These fair value measurements are directly impacted by the Company's estimates. Accordingly, if the estimates are higher or lower than the estimates within the fair value measurement, the Company would record additional charges or benefits, respectively, as appropriate.

Changes in the fair value measurements using significant unobservable inputs (Level 3) during the three months ending March 30, 2013 and March 31, 2012 were as follows:

	March 30, 2013			March 31, 2012
Beginning balance	$	1,928		$	—
Contingent consideration liabilities recorded at fair value at acquisition	—			—
Interest expense charged during the year	42			—
Change in fair value of contingent consideration liabilities	—			—
Settlements	(107		)	—
Ending balance	$	1,863		$	—

There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three months ended March 30, 2013 or March 31, 2012.

The carrying amounts and estimated fair values of the Company's financial instruments are summarized as follows:

	March 30, 2013				December 29, 2012
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	377	$	377	$	491	$	491
Notes receivable, including current portion	307		307		307		307
Financial liabilities:
Long-term debt and capital leases, including current portion	86,754		83,429		84,225		80,174
Interest rate swaps	934		934		1,086		1,086

The fair values of the Company's long-term debt and capital leases were estimated using market rates the Company believes would be available for similar types of financial instruments and represent level 2 measurements.  The fair values of cash and cash equivalents and notes receivable approximate their carrying amounts due to the short-term nature of the financial instruments.