Fair Value of Financial Instruments

12 Months Ended

Dec. 30, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

(12)Fair Value of Financial Instruments

The Company measures certain assets at fair value in accordance with current accounting standards. The fair value hierarchy consists of three levels: Level 1 fair values are valuations based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Current accounting standards permit entities to choose to measure many financial instruments and certain other items at fair value and establish presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar assets and liabilities. The Company has elected the fair value option for certain investments. At December 30, 2012 and December 25, 2011, these investments totaled $24,091 and $19,657, respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company recorded net gains of $2,504, $61 and $1,218 on these investments in other (income) expense, net for the years ended December 30, 2012, December 25, 2011 and December 26, 2010, respectively, relating to the change in fair value of such investments.

At December 30, 2012 and December 25, 2011, the Company had the following assets and liabilities measured at fair value in its consolidated balance sheets:

			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 30, 2012
Assets:
Available-for-sale securities	$	24,099		8		18,986		5,105
Derivatives		4,254		-		1,741		2,513
Total assets	$	28,353		8		20,727		7,618
Liabilities:
Derivatives	$	3,461		-		3,461		-
December 25, 2011
Assets:
Available-for-sale securities	$	19,669		12		19,657		-
Derivatives		29,500		-		25,776		3,724
Total assets	$	49,169		12		45,433		3,724
Liabilities:
Derivatives	$	1,908		-		1,908		-

For a portion of the Company's available-for-sale securities, the Company is able to obtain quoted prices from stock exchanges to measure the fair value of these securities. Certain other available-for-sale securities held by the Company are valued at the net asset value which is quoted on a private market that is not active; however, the unit price is predominantly based on underlying investments which are traded on an active market. In 2012 the Company purchased an available-for-sale investment which invests in hedge funds which contain financial instruments that are valued using certain estimates which are considered unobservable in that they reflect the investment manager's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that these estimates are the best information available for use in the fair value of this investment. The Company's derivatives consist primarily of foreign currency forward contracts. The Company uses current forward rates of the respective foreign currencies to measure the fair value of these contracts. At December 25, 2011 the Company's derivatives also included interest rate swaps used to effectively adjust the interest rates on a portion of the Company's long-term debt from fixed to variable. The fair values of the interest rate swaps were measured based on the present value of future cash flows using the swap curve as of the valuation date. The remaining derivative instruments consist of warrants to purchase common stock of an unrelated company. The Company uses the Black-Scholes model to value these warrants. One of the inputs used in the Black-Scholes model, historical volatility, 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. There were no changes in these valuation techniques during 2012.

The following is a reconciliation of the beginning and ending balances of the fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3):

	2012			2011
Balance at beginning of year	$	3,724			9,155
Purchases		5,000			-
Loss from change in fair value		(1,106	)		(5,431	)
Balance at end of year	$	7,618			3,724