Fair value measurement

9 Months Ended

Sep. 25, 2011

Fair value measurement

NOTE 10 – 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 Measurements and Disclosures,” 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 September 25, 2011 and December 26, 2010:

(in thousands of dollars)
	Fair Value Measurements as of Sept. 25, 2011
	Level 1		Level 2		Level 3		Total
Employee compensation related investments	$	15,872	$	—	$	—	$	15,872
Rabbi trust investments	$	24,667	$	—	$	—	$	24,667
Total assets	$	40,539	$	—	$	—	$	40,539
Contingent consideration payablea	$	—	$	—	$	17,842	$	17,842
Total liabilities	$	—	$	—	$	17,842	$	17,842

^a Under certain acquisition agreements entered into during 2011, the Company has agreed to pay the sellers earn-outs based on the financial performance of the businesses acquired. 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 Company recognized a credit to expense of less than $1 million in its results for the thirteen and thirty-nine weeks ended September 25, 2011 related to the updating of the fair value measurement of its contingent considerations.

	Fair Value Measurements as of Dec. 26, 2010
	Level 1		Level 2		Level 3		Total
Employee compensation related investments	$	15,976	$	—	$	—	$	15,976
Rabbi trust investments	$	26,902	$	—	$	—	$	26,902
Total assets	$	42,878	$	—	$	—	$	42,878

The fair value of the Company’s total long-term debt, based principally on quoted market prices for the individual tranches of debt, totaled $2.0 billion and $2.5 billion at September 25, 2011 and December 26, 2010, respectively.

In addition, the Company holds investments in non-public businesses in which the Company does not have control and does not exert significant influence. Such investments are carried at cost and are reduced for any impairment losses resulting from periodic evaluations of the carrying value of the investment. At September 25, 2011 and December 26, 2010, the aggregate carrying amount of such investments was $16 million. No events or changes in circumstances have occurred since December 26, 2010 that suggests a significant and adverse effect on the fair value of such investments. Accordingly, the Company did not evaluate such investments for impairment during the third quarter of 2011.