Harris Teeter 2011 Annual Report Download - page 48

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Fair 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:
Cash and Cash Equivalents $ 4,013 $ 4,013 $ - $-
Common Collective Trust Funds 95,829 - 95,829 -
Corporate Bonds 28,659 28,659 - -
Municipal Bonds 9,454 9,454 - -
U.S. Government Securities 3,228 3,228 - -
Other Fixed Income Securities 2,943 2,943 - -
Asset-Backed Securities 11,436 - 11,436 -
Equities 19,546 19,546 - -
Hedge Funds 29,866 - 29,866 -
Mutual Funds 25,080 25,080 - -
Group Annuity Contract 1,958 - 1,958 -
Total Assets $232,012 $92,923 $139,089 $-
Total pension assets of $41,777,000 and $43,876,000 as of October 2, 2011 and October 3, 2010, respectively have been
allocated to A&E discontinued operations. Individual assets will not be determined until settlement of the A&E component of
the pension plan.
Following is a description of the valuation methodologies used for pension assets measured at fair value.
Cash and Cash Equivalents – Fair values of cash equivalents are largely provided by independent pricing services.
Common Collective Trust Funds – These investments are public investment vehicles valued using the Net Asset Value
(“NAV”) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund,
minus its liabilities, and then divided by the number of shares outstanding. The investment is classified within level 2 of the
valuation hierarchy because the NAV’s unit price is quoted on a private market that is not active; however, the unit price is based
on underlying investments which are traded on an active market.
Bonds, U.S. Government Securities, Other Fixed Income Securities and Equities – These investments are valued at the
closing price reported on the active market on which the individual securities are traded.
Asset-Backed Securities – Prices are based on a compilation of primarily observable market information or a broker quote
in a non-active market.
Hedge Funds – These investments are in a private investment fund that uses proprietary trading methods to seek returns.
It is valued using the NAV provided by the manager of the fund. As of the end of fiscal 2011, the investment is classified within
Level 3 of the valuation hierarchy because the NAV’s unit price is quoted on a private market that is
not active and the Company does not have the ability to redeem the investment in the near term at the NAV as of the reporting date.
Mutual Funds – These investments are public investment vehicles valued using the NAV provided by the administrator
of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided
by the number of shares outstanding. The NAV is a quoted price in an active market.
Group Annuity Contract – Fair value is calculated by discounting the related cash flow based on current yields of similar
instruments with comparable durations considering the credit-worthiness of the issues.
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
44