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67
For fair value measurements using significant unobservable inputs, an independent third party provided the
valuation. The inputs used in the valuations used the following methodology. The collateral composition was used
to estimate Weighted Average Life based on historical and projected payment information. Cash flows were
projected for the issuing trusts, taking into account underlying loan principal, bonds outstanding, and payout
formulas. Taking this information into account, assumptions were made as to the yields likely to be required, based
upon then current market conditions for comparable or similar term Asset Based Securities as well as other fixed
income securities.
Assets and liabilities measured at estimated fair value on a recurring basis are summarized below:
Description Total Level 1 Level 2 Level 3
Available for-sale securites 203,592$ 203,592$ - -
Failed Auction rate securities 71,303 - - 71,303
Total 274,895$ 203,592$ -$ 71,303$
Fair Value Measurements as
of December 27, 2008
For assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs
(Level 3) during the period, SFAS No. 157 requires a reconciliation of the beginning and ending balances,
separately for each major category of assets. The reconciliation is as follows:
13-Weeks Ended 52-Weeks Ende
d
Dec 27, 2008 Dec 27, 2008
Beginning balance of auction rate securities $83,140 -$
Total unrealized losses included in other
comprehensive income (11,837) (21,547)
Purchases in and/or out of Level 3 -92,850
Transfers in and/or out of Level 3 --
Ending balance of auction rate securities $71,303 $71,303
Fair Value Measurements Using
Significant Unobservable Inputs (Level 3)
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities – including an amendment of FASB Statement No. 115. SFAS No. 159 allows companies to choose to
measure eligible financial instruments and certain other items at fair value that are not required to be measured at
fair value. SFAS No. 159 requires that unrealized gains and losses on items for which the fair value option has been
elected be reported in earnings at each reporting date. SFAS No. 159 is effective for fiscal years beginning after
November 15, 2007. The Company adopted SFAS No. 159 effective December 30, 2007 and the adoption did not
have a material impact on the Company’s financial condition or operating results.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial
Statements (“SFAS 160”). SFAS 160 outlines the accounting and reporting for ownership interests in subsidiaries
held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the
noncontrolling interest, changes in a parent’s ownership interest, and the valuation of retained noncontrolling equity
investments when a subsidiary is deconsolidated. SFAS 160 also establishes disclosure requirements that clearly
identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. The
statement is effective for fiscal years beginning on or after December 15, 2008. We do not expect the adoption of
SFAS No. 160 to have a material impact on our financial reporting and disclosure.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (“SFAS 141R”).
This standard establishes principles and requirements for how an acquirer recognizes and measures in its financial