Fair Value Of Financial Instruments

9 Months Ended

Sep. 25, 2011

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

9. Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash and cash equivalents, marketable securities, accounts receivable, net, finance receivables, net, accounts payable, debt, foreign currency contracts and interest rate swaps (derivative instruments are discussed further in Note 10). Under U.S. GAAP, certain of these items are required to be recorded in the financial statements at fair value, while others are required to be recorded at historical cost.

The following table summarizes the fair value and carrying value of the Company's financial instruments at September 25, 2011 and September 26, 2010 (in thousands):

	September 25, 2011				September 26, 2010
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets:
Cash and cash equivalents	$	1,428,753	$	1,428,753	$	1,494,301	$	1,494,301
Marketable securities	$	179,285	$	179,285	$	55,229	$	55,229
Accounts receivable, net	$	285,332	$	285,332	$	306,085	$	306,085
Derivatives	$	10,343	$	10,343	$	2,169	$	2,169
Finance receivables, net	$	6,008,081	$	5,905,828	$	6,236,095	$	6,210,511
Restricted cash held by variable interest entities	$	238,208	$	238,208	$	287,613	$	287,613
Liabilities:
Accounts payable	$	289,490	$	289,490	$	243,840	$	243,840
Derivatives	$	6,834	$	6,834	$	19,924	$	19,924
Unsecured commercial paper	$	813,571	$	813,571	$	697,481	$	697,481
Credit facilities	$	159,438	$	159,438	$	207,234	$	207,234
Medium-term notes	$	2,530,834	$	2,303,567	$	2,256,711	$	2,099,092
Senior unsecured notes	$	384,110	$	303,000	$	804,735	$	600,000
Term asset-backed securitization debt	$	2,015,261	$	1,995,073	$	2,596,730	$	2,533,370

Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Net and Accounts Payable – With the exception of certain money-market investments, these items are recorded in the financial statements at historical cost. The historical cost basis for these amounts is estimated to approximate their respective fair values due to the short maturity of these instruments.

Marketable Securities – Marketable securities are recorded in the financial statements at fair value. The fair value of marketable securities is based primarily on quoted market prices. Changes in fair value are recorded, net of tax, as other comprehensive income and included as a component of shareholders' equity.

Finance Receivables, Net – Finance receivables, net includes restricted finance receivables held by VIEs, net. Retail and wholesale finance receivables are recorded in the financial statements at historical cost less an allowance for finance credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. The historical cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates.

Debt – Debt is generally recorded in the financial statements at historical cost. The carrying value of debt provided under credit facilities approximates fair value since the interest rates charged under the facilities are tied directly to market rates and fluctuate as market rates change. The carrying value of unsecured commercial paper approximates fair value due to its short maturity.

The fair values of the medium-term notes maturing in December 2012, December 2014, March 2016 and June 2018 are estimated based upon rates currently available for debt with similar terms and remaining maturities. The medium-term notes which matured in December 2010 were carried at fair value and included a fair value adjustment due to an interest rate swap agreement, designated as a fair value hedge, which effectively converted a portion of the note from a fixed to a floating rate.

The fair value of the senior unsecured notes is estimated based upon rates currently available for debt with similar terms and remaining maturities.

The fair value of the debt related to term asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities.