Annual report pursuant to Section 13 and 15(d)

Fair Value of Financial Instruments

v3.3.1.900
Fair Value of Financial Instruments
 12 Months Ended
Jan. 02, 2016
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
The following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at January 2, 2016, and December 27, 2014. 
 
January 2, 2016
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
Assets

 

 

 

Level 1:

 

 

 

Equity securities
$
1,318

 
$
28

 
$
(36
)
 
$
1,310

Mutual funds
2,611

 
1

 
(238
)
 
2,374

Subtotal
$
3,929

 
$
29

 
$
(274
)
 
$
3,684

Level 2:

 

 

 

Corporate fixed income
$
35,936

 
$
8

 
$
(1,682
)
 
$
34,262

Municipal bonds
2,897

 
—

 
(94
)
 
2,803

Certificates of deposit and time deposits
2,947

 
—

 
—

 
2,947

Asset backed securities
498

 
—

 
(20
)
 
478

Subtotal
$
42,278

 
$
8

 
$
(1,796
)
 
$
40,490

Total
$
46,207

 
$
37

 
$
(2,070
)
 
$
44,174

Liabilities

 

 

 

Level 1:

 

 

 

Phantom stock units
$
17

 
$
—

 
$
—

 
$
17

Total
$
17

 
$
—

 
$
—

 
$
17


 
December 27, 2014
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
Assets
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
Equity securities
$
2,145

 
$
65

 
$
(282
)
 
$
1,928

Mutual funds
3,106

 
2

 
(227
)
 
2,881

Subtotal
$
5,251

 
$
67

 
$
(509
)
 
$
4,809

Level 2:
 
 
 
 
 
 
 
Corporate fixed income
$
33,740

 
$
6

 
$
(868
)
 
$
32,878

Municipal bonds
2,441

 
—

 
(33
)
 
2,408

Certificates of deposit and time deposits
2,439

 
—

 
—

 
2,439

Asset backed securities
842

 
—

 
(23
)
 
819

Subtotal
$
39,462

 
$
6

 
$
(924
)
 
$
38,544

Total
$
44,713

 
$
73

 
$
(1,433
)
 
$
43,353

Liabilities
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
Phantom stock units
$
30

 
$
—

 
$
—

 
$
30

Total
$
30

 
$
—

 
$
—

 
$
30


The Company recognized a net realized loss on investments during the twelve months ended January 2, 2016 of $1,102 and a net realized gain of $182 during the twelve months ended December 27, 2014. As of January 2, 2016, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant. The Company considers these unrealized losses in market value of its investments to be temporary in nature. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. During the twelve months ended January 2, 2016, the Company recognized an impairment charge of $875, which is included in the net realized loss for the period. This resulted from the deterioration of the financial condition of a corporate bond security issuer and the fair market value of equity securities.
Maturities of investments at January 2, 2016 are as follows:
 
Adjusted Cost

Fair Value
Due in less than one year
$
16,286


$
16,091

Due after one year but within five years
18,528


17,636

Due after five years but within ten years
4,329


3,846

Due after ten years
3,135


2,917

Equity securities
1,318


1,310

Mutual Funds
2,611


2,374

Total
$
46,207


$
44,174


The Company reports deferred director stock units and phantom stock units as a liability. All remaining deferred stock units were issued in 2013. The Company recognized expense relating to these liabilities of $17 and $35, for the periods ended January 2, 2016, and December 27, 2014, respectively. Phantom stock units vest over a period of three years.
The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the period ended January 2, 2016.