Fair Value Measurements

6 Months Ended

Mar. 28, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

NOTE 9 - FAIR VALUE MEASUREMENTS

Fair value is defined 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. The guidance for accounting for fair value measurements established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three levels of inputs are defined as follows:

Tier	Description
Level 1	Defined as observable inputs such as quoted prices in active markets.
Level 2	Defined as inputs other than quoted prices in active markets that are either directly or indirectly observable.
Level 3	Defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to
	develop its own assumptions.

Our only financial instruments not measured at fair value on a recurring basis includes cash and cash equivalents, receivables, accounts payable, accrued liabilities and long-term debt and are reflected in the condensed consolidated Balance Sheet at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature. We believe the fair value determination of these financials instruments is a level 1 measure. Estimated fair values for long-term debt have been determined using available market information, including reported trades and benchmark yields. The fair value of our indebtedness was approximately $534.0 million and $582.7 million as of March 28, 2013 and September 27, 2012, respectively. We believe the fair value determination of long-term debt is a level 2 measure.

In determining the impairment of operating stores and surplus properties, we determined the fair values by estimating selling prices of the assets. We generally determine the estimated selling prices using information from comparable sales of similar assets and assumptions about demand in the market for these assets. While some of these inputs are observable, significant judgment was required to select certain inputs from observed market data. We believe the fair value determination of surplus properties and operating stores is a level 2 measure.

For non-financial assets and liabilities measured at fair value on a non-recurring basis, quantitative disclosure of the fair value for surplus properties and operating stores and any resulting realized losses included in earnings is presented below. Because these assets are not measured at fair value on a recurring basis, certain carrying amounts and fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent their fair values as of the three months and six months ended March 28, 2013 and March 29, 2012.

	Three Months Ended								Six Months Ended
	March 28, 2013				March 29, 2012				March 28, 2013				March 29, 2012
(in thousands)	Surplus Properties		Operating Stores		Surplus Properties		Operating Stores		Surplus Properties		Operating Stores		Surplus Properties		Operating Stores
Non-recurring basis
Fair value measurement	$	1,995	$	612	$	1,831	$	1,052	$	5,114	$	3,136	$	1,831	$	1,477
Carrying amount		2,638		849		2,302		2,969		6,681		4,748		2,302		3,916
Realized loss	$	(643)	$	(237)	$	(471)	$	(1,917)	$	(1,567)	$	(1,612)	$	(471)	$	(2,439)