Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

v2.4.0.6
Fair Value of Financial Instruments
 9 Months Ended
Sep. 29, 2012
Fair Value of Financial Instruments [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses the three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The Company held available-for-sale securities with an aggregate fair value of $40,502 and $21,832 at September 29, 2012, and December 31, 2011, respectively. The Company, on a recurring basis, measures available-for-sale securities at fair value using quoted prices in active markets. The net unrealized holding loss amounted to $175 and $492 at September 29, 2012, and December 31, 2011, respectively. In addition, the Company reports deferred director stock units and phantom stock units as a liability. These liabilities, on a recurring basis, are measured at fair value using quoted prices in the active market. The Company’s liability was $338 and $1,182, at September 29, 2012, and December 31, 2011, respectively. The Company recognized expense related to those liabilities of $74 and a gain of $194 for the nine month periods ended September 29, 2012, and October 1, 2011, respectively.

The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 29, 2012, and October 1, 2011.

Assets measured at fair value on a recurring basis include the following at September 29, 2012:

 

                                 
           Fair Value Measurements at the End of the Reporting  Period Using  

Description

   September 29, 2012             Quoted Prices in         
Active Markets
(Level 1) 		            Significant Other         
Observable Inputs
(Level 2) 		            Significant         
Unobservable Inputs
(Level 3) 		 

Available-for-sale securities

   $ 40,502     $ 40,502     $ —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities measured at fair value on a recurring basis include the following at September 29, 2012:

 

                                 
           Fair Value Measurements at the End of the Reporting  Period Using  

Description

   September 29, 2012             Quoted Prices in         
Active Markets
(Level 1) 		            Significant Other         
Observable Inputs
(Level 2) 		            Significant         
Unobservable Inputs
(Level 3) 		 

Deferred director stock units

   $ 268     $ 268     $ —       $ —    

Phantom stock units

     70       70       —         —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Total recurring fair value measurements

   $ 338     $ 338     $ —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payable, accrued expenses and other liabilities approximate fair value based on their short-term status.