Fair Value of Assets and Liabilities

9 Months Ended

Oct. 02, 2011

Fair Value of Assets and Liabilities [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

9. FAIR VALUE OF ASSETS AND LIABILITIES

The Company’s balance sheet reflects certain financial assets and liabilities at carrying value. The following tables present the carrying values of those instruments and the corresponding fair values at October 2, 2011 and January 2, 2011 (in thousands):

	October 2, 2011
	Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	$	43,956	$	43,956
Restricted cash		53,355		53,355
Liabilities:
Borrowings under the Senior Credit Facility	$	722,129	$	766,071
7 3/ 4% Senior Notes		247,046		259,245
6.625% Senior Notes		300,000		295,875
Non-recourse debt, Australian subsidiary		39,708		39,125
Other non-recourse debt, including current portion		155,782		155,986

	January 2, 2011
	Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	$	39,664	$	39,664
Restricted cash		78,732		78,732
Liabilities:
Borrowings under the Senior Credit Facility	$	557,758	$	562,610
7 3/ 4% Senior Notes		250,078		265,000
Non-recourse debt, Australian subsidiary		46,300		46,178
Other non-recourse debt, including current portion		176,384		180,340

The fair values of the Company’s Cash and cash equivalents, and restricted cash approximates the carrying values of these assets at October 2, 2011 and January 2, 2011. Restricted cash consists of debt service funds used for payments on the Company’s non-recourse debt. The fair values of our 7  ³/4% Senior Notes, our 6.625% senior unsecured notes due 2021 (“6.625% Senior Notes”), and certain non-recourse debt are based on market prices, where available, or similar instruments. The fair value of the non-recourse debt related to the Company’s Australian subsidiary is estimated using a discounted cash flow model based on current Australian borrowing rates for similar instruments. The fair value of the non-recourse debt related to MCF is estimated using a discounted cash flow model based on the Company’s current borrowing rates for similar instruments. The fair value of the borrowings under the Credit Agreement is based on an estimate of trading value considering the Company’s borrowing rate, the undrawn spread and similar instruments.