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฀
65
5.฀Fair฀Value฀Measurements฀and฀Disclosures฀(continued)฀
฀
Certain฀ assets฀ and฀ liabilities฀ are฀ measured฀ at฀ fair฀ value฀ on฀ a฀ recurring฀ basis฀ and฀ are฀ required฀ to฀ be฀
classified฀and฀disclosed฀in฀one฀of฀the฀following฀categories:฀฀
฀
•
Level฀1:฀Quoted฀market฀prices฀in฀active฀markets฀for฀identical฀assets฀or฀liabilities.฀฀
•
Level฀2:฀Observable฀market-based฀inputs฀or฀unobservable฀inputs฀that฀are฀corroborated฀by฀market฀
data.฀฀
•
Level฀3:฀Unobservable฀inputs฀that฀are฀not฀corroborated฀by฀market฀data.฀฀
฀
Our฀financial฀assets฀and฀liabilities฀that฀were฀measured฀at฀fair฀value฀on฀a฀recurring฀basis฀as฀of฀December฀
29,฀2013฀and฀December฀30,฀2012฀are฀as฀follows฀(in฀thousands):฀
฀
Carrying฀
Value Level฀1 Level฀2 Level฀3
December฀29,฀2013
Financial฀assets:
฀฀฀Cash฀surrender฀value฀of฀life฀insurance฀policies฀(a) 16,798$฀฀฀฀ 16,798$฀฀฀฀฀฀ -$฀฀฀฀฀฀฀฀฀฀฀ -$฀฀฀฀฀฀฀฀฀฀฀
Financial฀liabilities:
฀฀฀Interest฀rate฀swap฀(b) 76฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀ 76฀฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀
December฀30,฀2012
Financial฀assets:
฀฀฀Cash฀surrender฀value฀of฀life฀insurance฀policies฀(a) 13,551$฀฀฀฀ 13,551$฀฀฀฀฀฀ -$฀฀฀฀฀฀฀฀฀฀฀ -$฀฀฀฀฀฀฀฀฀฀฀
Financial฀liabilities:
฀฀฀Interest฀rate฀swap฀(b) 104฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀ 104฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀
Fair฀Value฀Measurements
฀
(a)
Represents฀life฀insurance฀policies฀held฀in฀our฀non-qualified฀deferred฀compensation฀plan.
฀
฀฀
(b)
The฀fair฀value฀of฀our฀interest฀rate฀swap฀is฀based฀on฀the฀sum฀of฀all฀future฀net฀present฀value฀cash฀flows.฀
The฀future฀cash฀flows฀are฀derived฀based฀on฀the฀terms฀of฀our฀interest฀rate฀swap,฀as฀well฀as฀considering฀
published฀discount฀factors,฀and฀projected฀London฀Interbank฀Offered฀Rates฀(“LIBOR”).฀
฀
฀
There฀were฀no฀transfers฀among฀levels฀within฀the฀fair฀value฀hierarchy฀during฀fiscal฀2013฀or฀2012.฀
฀ ฀