Fair value measurement

6 Months Ended

Jun. 30, 2013

Compensation Related Costs [Abstract]

Fair value measurement

Fair value measurement

The Company measures and records in the accompanying condensed consolidated financial statements certain assets and liabilities at fair value.  ASC Topic 820, Fair Value Measurement, establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs).  The hierarchy consists of three levels:

Level 1 - Quoted market prices in active markets for identical assets or liabilities;

Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable; and

Level 3 - Unobservable inputs developed using estimates and assumptions developed by the company, which reflect those that a market participant would use.

The following table summarizes the Company’s assets and liabilities measured at fair value in the accompanying condensed consolidated balance sheet as of June 30, 2013 and December 30, 2012:

In thousands of dollars	Fair Value Measurements as of Jun. 30, 2013
	Level 1		Level 2		Level 3		Total
Employee compensation related investments	$	26,225	$	—	$	—	$	26,225
Sundry investments	30,873		—		—		30,873
Total assets	$	57,098	$	—	$	—	$	57,098
Contingent consideration payable	$	—	$	—	$	35,893	$	35,893
Total liabilities	$	—	$	—	$	35,893	$	35,893

In thousands of dollars	Fair Value Measurements as of Dec. 30, 2012
	Level 1		Level 2		Level 3		Total
Employee compensation related investments	$	23,043	$	—	$	—	$	23,043
Sundry investments	29,090		—		—		29,090
Total assets	$	52,133	$	—	$	—	$	52,133
Contingent consideration payable	$	—	$	—	$	26,170	$	26,170
Total liabilities	$	—	$	—	$	26,170	$	26,170

Under certain acquisition agreements, the Company has agreed to pay the sellers earn-outs based on the financial performance of the acquired businesses. Contingent consideration payable in the table above represents the estimated fair value of future earn-outs payable under such agreements. The fair value of the contingent payments was measured based on the present value of the consideration expected to be transferred. The discount rate is a significant unobservable input in such present value computations. Discount rates ranged between 10% and 32% depending on the risk associated with the cash flows. For the twenty-six weeks ended June 30, 2013, the contingent consideration was increased by $14.1 million primarily as a result of new acquisitions. The increase was partially offset by payments of $4.3 million and adjustments to fair value.

The fair value of the Company’s total long-term debt, based on the bid and ask quotes for the related debt (Level 2), totaled $1.50 billion and $1.62 billion at June 30, 2013 and December 30, 2012, respectively.