Fair Value Measurements

3 Months Ended

Mar. 23, 2013

Fair Value Disclosures [Text Block]

Note 4 – Fair Value Measurements

We account for instruments recorded at fair value under the established fair value framework.  The framework also applies under other accounting pronouncements that require or permit fair value measurements.  

The fair value hierarchy for disclosure of fair value measurements is as follows:

Level 1:  Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2:  Quoted prices, other than quoted prices included in Level 1, which are observable for the assets or liabilities, either directly or indirectly.

Level 3:  Inputs that are unobservable for the assets or liabilities.

As of March 23, 2013 and December 29, 2012, we are not a party to any financial instruments that would be subject to a fair value measurement. 

Other Financial Assets and Liabilities

 Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable.  Financial liabilities with carrying values approximating fair value include accounts payable and outstanding checks. The carrying value of these financial assets and liabilities approximates fair value due to their short maturities.

The fair value of notes receivable approximates the carrying value, which includes a reserve for estimated uncollectible amounts, at March 23, 2013 and December 29, 2012.  Substantially all notes receivable are based on floating interest rates which adjust to changes in market rates.

Long-term debt, which includes any current maturities of long-term debt, at March 23, 2013, had a carrying value and fair value of $381.4 million, and at December 29, 2012, had a carrying value and fair value of $356.3 million.  At March 23, 2013, all of our long-term debt was based on floating interest rates which adjust to changes in market rates.

Non-Financial Assets

During the first quarter of 2013, we recognized no asset impairments as compared to $0.1 million in asset impairments during the first quarter of 2012.  We utilize a discounted cash flow model and market approach that incorporates unobservable level 3 inputs to test for goodwill and long-lived asset impairments.