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68
statements the identifiable assets acquired, the liabilities assumed, any non-controlling interest in the acquiree and
the goodwill acquired. SFAS 141R also establishes disclosure requirements that will enable users to evaluate the
nature and financial effects of the business combination. The statement is effective for financial statements issued
for fiscal years beginning on or after December 15, 2008 and interim periods within those fiscal years. The
Company will determine the impact of adopting SFAS 141R on its consolidated financial statements should
applicable transactions occur in the future.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, Disclosures about
Derivative Instruments and Hedging Activities (“SFAS No. 161”). This statement will require holders of derivative
instruments to provide qualitative disclosures about objectives and strategies for using derivatives, quantitative
disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-
risk-related contingent features in derivative agreements. This statement is effective for interim and annual periods
beginning after November 15, 2008. The company is not currently the holder of any derivative instruments; thus,
currently adoption of this statement would not have any effect on the Company’s results of operations, financial
condition, or cash flows.
3. Marketable Securities
The following is a summary of the Company’s marketable securities classified as available-for-sale
securities at December 27, 2008:
Estimated Fair
Gross Unrealized Value (Net
Amortized Cost Gains/(Losses) Carrying Amount)
Mortgage-backed securities $137,854 $1,044 $138,898
Auction rate securities 92,850 (21,547) 71,303
Obligations of states and political subdivisions 40,336 948 41,284
U.S. corporate bonds 16,545 (2,507) 14,038
Other 9,502 (130) 9,372
Total $297,087 ($22,192) $274,895
The following is a summary of the Company’s marketable securities classified as available-for-sale
securities at December 29, 2007:
Estimated Fair
Gross Unrealized Value (Net
Amortized Cost Gains/(Losses) Carrying Amount)
Mortgage-backed securities $99,749 ($68) $99,681
Obligations of states and political subdivisions 59,497 158 59,655
U.S. corporate bonds 8,479 (219) 8,260
Equity securities 188,971 46,688 235,659
Other 21,333 (83) 21,250
Total $378,029 $46,476 $424,505
The unrealized losses on the Company’s investment in 2008 were caused primarily by changes in interest
rates, specifically, widening credit spreads. The Company’s investment policy requires investments to be rated A or
better with the objective of minimizing the potential risk of principal loss. Therefore, the Company considers the
declines to be temporary in nature. Fair values were determined for each individual security in the investment
portfolio. When evaluating the investments for other-than-temporary impairment, the Company review factors such
as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer,
and the Company’s ability and intent to hold the investment for a period of time, which may be sufficient for
anticipated recovery in market value. During 2008, the Company did not record any material impairment charges on
its outstanding securities. As of December 27, 2008, the Company does not consider any of its investment to be
other-than-temporarily impaired.