Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

NOTE I – FAIR VALUE MEASUREMENTS

The company measures fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In developing its fair value estimates, the company uses the following hierarchy:

Level 1:	Quoted prices in active markets for identical assets or liabilities.
Level 2:	Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3:	Significant unobservable inputs that are not corroborated by market data. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows or option pricing models using our own estimates and assumptions or those expected to be used by market participants.

The fair values of cash and cash equivalents, receivables, accounts payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature.

See Note A for additional information on cash and cash equivalents, which total $570.7 million at December 31, 2011 (Level 1), as well as fair value estimates used when considering potential impairments of long-lived assets and goodwill (Level 3). Impairment charges of $11.4 million in 2011 and $2.3 million in 2010 were based on estimated fair values of the related assets of $1.7 million in 2011 and $0.4 million in 2010.

The fair values of our interest rate swaps, foreign currency contracts and fuel contracts are the amounts receivable or payable to terminate the agreements at the reporting date, taking into account current interest rates, exchange rates and commodity prices. The values are based on market-based inputs or unobservable inputs that are corroborated by market data. There were no interest rate swap agreements in place at the end of 2011 and the amounts receivable or payable under foreign currency and fuel contracts were not significant at the end of 2011. See Note J for additional information on our derivative instruments and hedging activities.

Fair value estimates may be required to measure certain assets and liabilities on a nonrecurring basis for asset impairments and exit cost valuations.

The following table summarizes the company's financial assets and liabilities measured at fair value on a recurring basis:

	Level 2
(In thousands)	Fair Value Measurement Category
	December 31, 2011		December 25, 2010
Assets
Commodity contracts – fuel	$	—	$	253
Foreign exchange contracts		341		—
Liabilities:
Commodity contracts – fuel	$	251	$	—
Foreign exchange contracts	$	92	$	434

The company records its senior notes payable at par value, adjusted for amortization of a fair value hedge which was cancelled in 2005. The fair value of the senior notes indicated in the following table was determined based on quoted market prices.

	2011				2010
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
$400 million senior notes	$	399,953	$	381,067	$	400,067	$	398,000

There were no significant differences between the carrying values and fair values of our financial instruments as of December 31, 2011 and December 25, 2010, except as disclosed above.