Popeye's 2013 Annual Report Download - page 74

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Popeyes Louisiana Kitchen, Inc.
Notes to Consolidated Financial Statements
For Fiscal Years 2013, 2012, and 2011 — (Continued)
58
Note 8 — Fair Value Measurements
The following table reflects assets and liabilities that are measured and carried at fair value on arecurring basis as
of December 29, 2013 and December 30, 2012:
Quoted Prices
in Active
Markets for
Identical
Asset or
Liability
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Carrying
Value
December 29, 2013
Financial Assets
Cash equivalents $10.6 $ — $ — $ 10.6
Restricted cash (advertising cooperative assets) 4.3 — — 4.3
Total assets at fair value $14.9 $ — $ — $ 14.9
Financial Liabilities
Long term debt and other borrowings $ — 72.2 $ — 67.2
Total liabilities at fair value $ — $ 72.2 $ — $ 67.2
Quoted Prices
in Active
Markets for
Identical
Asset or
Liability
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Carrying
Value
December 30, 2012
Financial Assets
Cash equivalents $16.3 $ — $ — $ 16.3
Restricted cash (advertising cooperative assets) 4.3 — — 4.3
Total assets at fair value $20.6 $ — $ — $ 20.6
Financial Liabilities
Interest rate swap agreement (Note 9) $ — $ 1.3 $ — $ 1.3
Long term debt and other borrowings $ — 74.4 $ — 72.8
Total liabilities at fair value $ — $ 75.7 $ — $ 74.1
At December 29, 2013 and December 30, 2012,the fair value of the Company’s current assets and current liabilities
approximates carrying value because of the short-term nature of these instruments.
The fair value of the Company’sinterest rate swap at December 30, 2012 was 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”). The fair values of
each of the Company’slong-term debt instruments are based on the amount of future cash flows associated with each
instrument, discounted using the Company’s current borrowing rate for similar debt instruments of comparable maturity.