Financial Instruments

3 Months Ended

Apr. 02, 2017

Financial Instruments (Thousands of Dollars) [Abstract]

(4) Financial Instruments

The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At April 2, 2017, March 27, 2016 and December 25, 2016, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at April 2, 2017, March 27, 2016 and December 25, 2016 also include certain assets and liabilities measured at fair value (see Notes 6 and 8) as well as long-term borrowings. The carrying costs which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of April 2, 2017, March 27, 2016 and December 25, 2016 are as follows:

	April 2, 2017				March 27, 2016				December 25, 2016
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Cost		Value		Cost		Value		Cost		Value
6.35% Notes Due 2040	$	500,000		597,150		500,000		560,900		500,000		584,850
6.30% Notes Due 2017		350,000		357,385		350,000		370,965		350,000		361,900
5.10% Notes Due 2044		300,000		306,570		300,000		287,610		300,000		297,600
3.15% Notes Due 2021		300,000		305,490		300,000		302,880		300,000		300,450
6.60% Debentures Due 2028		109,895		125,390		109,895		122,456		109,895		123,984
Total long-term debt	$	1,559,895		1,691,985		1,559,895		1,644,811		1,559,895		1,668,784
Less: Current portion		350,000		357,385		-		-		350,000		361,900
Less: Deferred debt expenses		10,999		-		12,461		-		11,216		-
Long-term debt	$	1,198,896		1,334,600		1,547,434		1,644,811		1,198,679		1,306,884

Current portion of long-term debt at April 2, 2017 and December 25, 2016 of $349,814 and $349,713, respectively, as shown on the consolidated balance sheet represents the $350,000 principal of 6.30% notes less $186 and $287, respectively, of deferred debt expenses.

The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 6 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement.