Note 3 - Fair Value and Marketable Securities

9 Months Ended

Sep. 27, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

3. FAIR VALUE AND MARKETABLE SECURITIES

FAIR VALUE OF FINANCIAL INSTRUMENTS

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 (exit price). Inputs used to measure fair value are classified in the following hierarchy:

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2	Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
Level 3	Unobservable inputs for the asset or liability

    The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table presents a summary of fair value information for available-for-sale securities at December 31, 2013 and September 27, 2014:

					Fair Value Measurements at Reporting Date Using
Security Type	Amortized Cost Basis (1)		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Former-auction corporate debt security (2)	$	1,800	$	2,997	$	-	$	2,997	$	-
Auction Rate Security - Preferred Equity		-		450		-		-		450
Total at December 31, 2013	$	1,800	$	3,447	$	-	$	2,997	$	450
Total at September 27, 2014	$	-	$	-	$	-	$	-	$	-

(1) Difference between amortized cost basis and fair value represents gross unrealized gains.

(2) Available for sale debt security with a contractual maturity in excess of 10 years.

During the first half of 2014, our Level 2 former-auction corporate debt security and remaining Level 3 preferred equity action rate security sold for $2,960 and $568, respectively, resulting in a realized gain of $1,728, which was recorded to Other income, net.

The fair value of each of the following instruments approximates their carrying value because of the short maturity of these instruments: cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities.

For the three and nine months ended September 28, 2013, the table below provides a reconciliation of the beginning and ending balances for each type of security valued using a Level 3 valuation.

($ in 000’s)	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Nine months ended September 28, 2013
	Preferred Equity Securities (a)
Balance at January 1, 2013	$	1,568
Total gains or losses realized/unrealized
Included in earnings (loss)
- quarter ended March 30, 2013		-
- quarter ended June 29, 2013		872
- quarter ended September 28, 2013		-
Included in other comprehensive income(loss)
- quarter ended March 30, 2013		477
- quarter ended June 29, 2013		(467	)
- quarter ended September 28, 2013		(56	)
Purchases		-
Redemptions and settlements
- quarter ended March 30, 2013		-
- quarter ended June 29, 2013		(2,000	)
- quarter ended September 28, 2013		-
Transfers in and/or out of Level 3		-
Balance at September 28, 2013	$	394
Amount of total gains or losses for the period included in earnings(loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date		-
Securities held at September 28,2013:
Face value	$	1,125
Financial ratings	NR
Weighted average interest rate		0	%
Maturity date	N/A

(a) Preferred securities issued by subsidiaries of two publicly-held debt default insurers. During the second quarter of 2013, one of these securities redeemed at $2,000 par, resulting in an $872 realized gain recorded to Other income, net.