Buffalo Wild Wings 2011 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2011 Buffalo Wild Wings annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 65

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65

47
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 25, 2011 and December 26, 2010
(Dollar amounts in thousands, except per-share amounts)
(2) Fair Value Measurements
The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for
measuring fair value, and outlines the required disclosures regarding fair value measurements. Fair value is the price that
would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for
the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-tier fair
value hierarchy based upon observable and non-observable inputs 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 following table summarizes the financial instruments measured at fair value in our consolidated balance sheet as of
December 25, 2011:
Cash Equivalents
$
10,103
1,500
—
11,603
Marketable Securities
5,304
—
—
5,304
Total
Assets
Level 1 Level 2 Level 3
The following table summarizes the financial instruments measured at fair value in our consolidated balance sheet as of
December 26, 2010:
Cash Equivalents
$
2,608
–
–
2,608
Marketable Securities
4,987
11,949
–
16,936
Derivatives
86 – – 86
Liabilities
Total
Assets
Level 1 Level 2 Level 3
We classified a portion of our marketable securities as available-for-sale and trading securities which were reported at
fair market value, using the ‘market approach’ valuation technique. The ‘market approach’ valuation method uses prices and
other relevant information observable in market transactions involving identical or comparable assets. Our trading securities
are valued using the Level 1 approach. Our cash equivalents include commercial paper and money market funds which are
valued using Level 1 and Level 2 approaches.
There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the fiscal years ended December
25, 2011, December 26, 2010, and December 27, 2009.
Our financial assets and liabilities requiring a fair-value measurement on a non-recurring basis were not significant as of
December 25, 2011.
Assets and liabilities that are measured at fair value on a recurring basis
At December 25, 2011, we did not have any significant nonfinancial assets or liabilities that required a fair-value
measurement on a recurring basis.