Harris Teeter 2010 Annual Report Download - page 51

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The following tables present the required fair value quantitative disclosures, on a combined basis, for the
Company’s financial instruments, designated as cash flow hedges (in thousands):
Carrying
Value
Quoted Prices
in Active
Markets for
Identical
Instruments
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value Measurement at October 3, 2010:
Interest rate swaps (included with Other Long-Term
Liabilities on the balance sheet) ................. $1,654 $— $1,654 $—
Fair Value Measurement at September 27, 2009:
Interest rate swaps (included with Other Long-Term
Liabilities on the balance sheet) ................. $ 585 $— $ 585 $—
There were no transfers into or out of Level 1 and Level 2 fair value measurements during the year ended
October 3, 2010.
The pre-tax unrealized losses associated with the cash flow hedges for the fiscal years were as follows
(in thousands):
2010 2009 2008
Unrealized loss recognized in other comprehensive income ...... $975 $585 $—
9. FINANCIAL INSTRUMENTS
Financial instruments which potentially subject the Company to concentration of credit risk consist principally
of cash equivalents and notes receivables. The Company limits the amount of credit exposure to each individual
financial institution and places its temporary cash into investments of high credit quality. Concentrations of credit
risk with respect to receivables are limited due to their dispersion across various companies and geographies.
The carrying amounts for certain of the Company’s financial instruments, including cash and cash equivalents,
accounts and notes receivable, accounts payable and other accrued liabilities approximate fair value because of their
short maturities. The fair value of variable interest debt is equal to its carrying amount. The estimated fair value
of the Company’s Senior Notes due at various dates through 2017 (which accounts for 94% of the Company’s fixed
interest debt obligations) is computed based on borrowing rates currently available to the Company for loans with
similar terms and maturities. The estimated fair value of the Company’s Senior Notes and its carrying amount
outstanding as of October 3, 2010 and September 27, 2009 is as follows (in thousands):
2010 2009
Senior Notes – estimated fair value .................................... $133,751 $134,322
Senior Notes – carrying amount ....................................... 107,143 114,286
10. CAPITAL STOCK
The capital stock of the Company authorized at September 28, 2008 was 75,000,000 shares of no par value
Common Stock, 4,000,000 shares of Preference Stock (non-cumulative voting $0.56 convertible, $10 liquidation
value), and 1,000,000 shares of Additional Preferred Stock. No shares of Preference Stock or Additional Preferred
Stock were issued or outstanding at October 3, 2010 or September 27, 2009.
One preferred share purchase right is attached to each outstanding share of common stock, which rights
expired subsequent to the end of fiscal 2010. Each right entitled the holder to purchase one one-hundredth of a
share of a new Series A Junior Participating Additional Preferred Stock for $60. The rights expired on November 16,
2010. The Company has 600,000 shares of Series A Junior Participating Additional Preferred Stock reserved for
issuance.
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
46