Derivative Instruments

12 Months Ended

Dec. 31, 2011

Derivative Instruments [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 8 - Derivative Instruments

We have market risk exposure to changing interest rates primarily as a result of our borrowing activities and commodity price risk associated with anticipated purchases of diesel fuel.  Our objective in managing our exposure to changes in interest rates and commodity prices is to reduce fluctuations in earnings and cash flows.  To achieve these objectives, from time-to-time we use derivative instruments, primarily interest rate swap agreements and fixed price fuel supply agreements, to manage risk exposures when appropriate, based on market conditions.  We do not enter into derivative agreements for trading or other speculative purposes, nor are we a party to any leveraged derivative instrument. 

The interest rate swap agreements are designated as cash flow hedges and are reflected at fair value in our Consolidated Balance Sheet and the related gains or losses on these contracts are deferred in stockholders’ equity as a component of other comprehensive income.  As of December 31, 2011, we have no outstanding interest rate swap agreements, as compared to a fair value liability of $0.4 million as of January 1, 2011.  The fair value of all such liabilities is included in accrued expenses on our Consolidated Balance Sheet.  Deferred gains and losses are amortized as an adjustment to interest expense over the same period in which the related items being hedged are recognized in income.  However, to the extent that any of these contracts are not considered to be effective in offsetting the change in the value of the items being hedged, any changes in fair value relating to the ineffective portion of these contracts are immediately recognized in income.  Our interest rate swap agreements resulted in recognizing interest expense of $0.4 million, $1.0 million and $1.5 million in fiscal 2011, fiscal 2010 and fiscal 2009, respectively.

                There were no interest rate swap agreements outstanding as of December 31, 2011.  Interest rate swap agreements outstanding at January 1, 2011 and their fair values are summarized as follows:

(In thousands, except percentages)	January 1, 2011
Notional amount (pay fixed/receive variable)	$      17,500
Fair value liability	(433)
Average receive rate for effective swaps	0.3%
Average pay rate for effective swaps	3.4%

                In addition to the previously discussed interest rate swap agreements, from time-to-time we enter into a fixed price fuel supply agreements to support our food distribution segment.  On January 1, 2009, we entered into an agreement which required us to purchase a total of 252,000 gallons of diesel fuel per month at prices ranging from $1.90 to $1.98 per gallon.  The term of the agreement was for one year and expired on December 31, 2009.  The fixed price fuel agreement qualified and was designated under the “normal purchase” exception, therefore the fuel purchases under the contract were expensed as incurred as an increase to cost of sales.