Note 4 Fair Value

12 Months Ended

Oct. 01, 2011

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value

Fair Value Option for Long-term Debt

The Company has elected not to record its long-term debt instruments at fair value, but has measured them at fair value for disclosure purposes. As of October 1, 2011, the carrying amount and estimated fair value of the Company's long-term debt instruments were $1,157.4 million and $1,088.8 million, respectively. Fair value was estimated based on either a quoted price or other market sources (Level 2 inputs).

Assets/Liabilities Measured at Fair Value on a Recurring Basis

The Company's primary financial assets and financial liabilities are as follows:

•Money market funds

•Time deposits

•Foreign currency forward contracts

•Interest rate swaps

ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing an asset or liability.

Inputs to valuation techniques used to measure fair value are prioritized into three broad levels (fair value hierarchy), as follows:

Level 1: Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs that reflect quoted prices, other than quoted prices included in Level 1, that are observable for the assets or liabilities, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in less active markets; or inputs that are derived principally from or corroborated by observable market data by correlation.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of assets or liabilities.

There were no transfers between levels in the fair value hierarchy during any period presented herein. The following table presents information as of October 1, 2011 with respect to assets and liabilities measured at fair value on a recurring basis:

	Money market funds		Time deposits		Derivatives designated as hedging instruments under ASC 815: Foreign Currency Forward Contracts and Interest Rate Swaps			Derivatives not designated as hedging instruments under ASC 815: Foreign Currency Forward Contracts			Total
	Level 1		Level 1		Level 2			Level 2
	(In thousands)
Balance Sheet Classification:
Cash and cash equivalents	$	435	$	52,120	$	—		$	—		$	52,555
Prepaid expenses and other current assets	—		—		59			8,243			8,302
Other assets	—		—		24,898			—			24,898
Accrued liabilities (1)	—		—		(331		)	(8,211		)	(8,542		)
Other long-term liabilities (1)	—		—		(33,211		)	—			(33,211		)
Total	$	435	$	52,120	$	(8,585	)	$	32		$	44,002

(1) Liabilities, or credit balances, are presented as negative amounts.

The following table presents information as of October 2, 2010 with respect to assets and liabilities measured at fair value on a recurring basis:

	Money market funds		Time deposits		Derivatives designated as hedging instruments under ASC 815: Foreign Currency Forward Contracts and Interest Rate Swaps			Derivatives not designated as hedging instruments under ASC 815: Foreign Currency Forward Contracts			Total
	Level 1		Level 1		Level 2			Level 2
	(In thousands)
Balance Sheet Classification:
Cash and cash equivalents	$	791	$	99,110	$	—		$	—		$	99,901
Prepaid expenses and other current assets	—		—		10			8,282			8,292
Accrued liabilities (1)	—		—		(42		)	(10,475		)	(10,517		)
Other long-term liabilities (1)	—		—		(40,296		)	—			(40,296		)
Total	$	791	$	99,110	$	(40,328	)	$	(2,193	)	$	57,380

(1) Liabilities, or credit balances, are presented as negative amounts.

The Company sponsors deferred compensation plans for eligible employees and non-employee members of its Board of Directors that allow participants to defer payment of part or all of their compensation. The Company's results of operations are not significantly affected by these plans since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with these plans have not been included in the above tables. Assets and liabilities associated with these plans of approximately $10.0 million as of October 1, 2011 and $10.8 million as of October 2, 2010 are recorded as other non-current assets and other long-term liabilities in the consolidated balance sheet.

The Company values derivatives using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present value amount assuming that participants are motivated, but not compelled, to transact. The Company seeks high quality counterparties for all financing arrangements. For interest rate swaps, Level 2 inputs include short-term LIBOR rates, futures contracts on LIBOR between two and four years, longer term swap rates at commonly quoted intervals, and credit default swap rates for the Company and relevant counterparties. For currency contracts, Level 2 inputs include foreign currency spot and forward rates and interest rates at commonly quoted intervals. Mid-market pricing is used as a practical expedient for fair value measurements. ASC Topic 820 requires the fair value measurement of an asset or liability to reflect the nonperformance risk of the entity and the counterparty. Therefore, the counterparty's creditworthiness when in an asset position and the Company's creditworthiness when in a liability position have been considered in the fair value measurement of derivative instruments. The effect of nonperformance risk on the fair value of derivative instruments was not material as of October 1, 2011 and October 2, 2010.

Non-Financial Assets Measured at Fair Value on a Nonrecurring Basis

The Company's assets held-for-sale consist of land and buildings that are measured at fair value on a nonrecurring basis since these assets are subject to fair value adjustments only when the carrying amount of such assets exceeds the fair value of such assets or such assets have been previously impaired and the fair value exceeds the carrying amount by less than the amount of the impairment that has been recognized. Level 2 inputs consist of independent third party valuations based on market comparables. The carrying value of the Company's assets held-for-sale was $13.9 million as of October 1, 2011 and $53.0 million as of October 2, 2010, and is included in prepaid expenses and other current assets in the consolidated balance sheet. The decrease in carrying value of the Company's assets held-for-sale was primarily due to reclassification of certain assets, still being actively marketed for sale, to property, plant and equipment since such assets no longer met the criteria for held-for-sale classification.