Fair Value Measurements

6 Months Ended

Mar. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

2. Fair Value Measurements

ASC 820 establishes a single authoritative definition of fair value, a framework for measuring fair value and expands disclosure of fair value measurements. ASC 820 requires financial assets and liabilities to be categorized based on the inputs used to calculate their fair values as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 - Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).

The Company’s financial instruments include cash and equivalents, short term investments consisting of bank certificates of deposit, accounts receivable and payable, derivative instruments, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of March 30, 2013 (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
Certificates of deposit	$	0	$	17,820	$	0	$	17,820
Total assets	$	0	$	17,820	$	0	$	17,820
Liabilities:
Derivative liabilities	$	0	$	451	$	0	$	451
Total liabilities	$	0	$	451	$	0	$	451

The following table presents our financial assets and liabilities at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of March 24, 2012 (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
Certificates of deposit	$	0	$	17,820	$	0	$	17,820
Derivative assets		0		61		0		61
Total assets	$	0	$	17,881	$	0	$	17,881
Liabilities:
Derivative liabilities	$	0	$	26	$	0	$	26
Total liabilities	$	0	$	26	$	0	$	26

The following table presents our financial assets and liabilities at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 29, 2012 (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
Certificates of deposit	$	0	$	17,820	$	0	$	17,820
Derivative assets		0		334		0		334
Total assets	$	0	$	18,154	$	0	$	18,154
Liabilities:
Derivative liabilities	$	0	$	206	$	0	$	206
Total liabilities	$	0	$	206	$	0	$	206

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company measures certain non-financial assets and liabilities, including long-lived assets, goodwill and intangible assets, at fair value on a non-recurring basis. Fair value measurements of non-financial assets and non-financial liabilities are used primarily in the impairment analyses of long-lived assets, goodwill and other intangible assets. During the period ended March 30, 2013, the Company was not required to measure any significant non-financial assets and liabilities at fair value.

Fair Value of Other Financial Instruments

The estimated fair value of the Company’s $450 million 8.25 % senior subordinated notes due 2018 as of March 30, 2013 was $463.7 million, compared to a carrying value of $449.4 million. The estimated fair value is based on quoted market prices for these notes.