Fair Value Measurements

6 Months Ended

Aug. 27, 2011

Fair Value Measurements

Note 9 – Fair Value Measurements

ASC Subtopic 820-10, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and requires additional disclosure about the use of fair value to measure assets and liabilities.  The statement indicates, among other things, that a fair value measurement assumes a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company does not have any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis.

In order to increase consistency and comparability in fair value measurements, ASC 820-10 establishes a hierarchy for observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

· Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

· Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

· Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Assets measured at fair value on a recurring basis include the following as of August 27, 2011, February 26, 2011 and August 28, 2010:

Fair Value Measurement at August 27, 2011 Using
	Quoted Prices In Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Carrying Value at
(In thousands)	(Level 1)		(Level 2)		(Level 3)		August 27, 2011
Cash and cash equivalents	$	2,412	$	-	$	-	$	2,412
Cash surrender value – Officers’ Life Insurance	$	-	$	2,259	$	-	$	2,259

Fair Value Measurement at February 26, 2011 Using
	Quoted Prices In Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Carrying Value at
(In thousands)	(Level 1)		(Level 2)		(Level 3)		February 26, 2011
Cash and cash equivalents	$	2,298	$	-	$	-	$	2,298
Cash surrender value – Officers’ Life Insurance	$	-	$	2,192	$	-	$	2,192

Fair Value Measurement at August 28, 2010 Using
	Quoted Prices In Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Carrying Value at
(In thousands)	(Level 1)		(Level 2)		(Level 3)		August 28, 2010
Cash and cash equivalents	$	2,885	$	-	$	-	$	2,885
Cash surrender value – Officers’ Life Insurance	$	-	$	1,951	$	-	$	1,951

On an annual recurring basis, the Company is required to use fair value measures when measuring plan assets of the Company's pension plans. As the Company elected to adopt the measurement date provisions of ASC 715, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans," as of  March 4, 2007, the Company was required to determine the fair value of the Company's pension plan assets as of February 26, 2011. The fair value of pension plan assets was $7.9 million at February 26, 2011. As of August 27, 2011, the fair value of pension plan assets was $7.4 million. These assets are valued in active liquid markets.

Additionally, on a nonrecurring basis, the Company uses fair value measures when analyzing asset impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. Measurements based on undiscounted cash flows are considered to be level 3 inputs.