ÂÒÂ×°ÍÊ¿

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

 v2.3.0.11
Fair Value Measurements
 6 Months Ended
Jul. 02, 2011
Fair Value Measurements Ìý
Fair Value Measurements
Note M — Fair Value Measurements
Fair value is the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market in an orderly transaction between market participants. In determining fair value, the accounting standards distinguish between (i)Ìýmarket data obtained or developed from independent sources (i.e., observable data inputs) and (ii)Ìýa reporting entity's own data and assumptions that market participants would use in pricing an asset or liability (i.e., unobservable data inputs). Financial assets and financial liabilities measured and reported at fair value are classified in a three level hierarchy that prioritizes the inputs used in the valuation process. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows:
Éù Ìý Level 1 — Quoted prices in active markets for identical assets or liabilities.
Éù Ìý Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i)Ìýquoted prices in active markets for similar assets or liabilities, (ii)Ìýquoted prices in inactive markets for identical or similar assets or liabilities or (iii)Ìýinformation derived from or corroborated by observable market data.
Éù Ìý Level 3 — Prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be a reporting entity's own data and judgments about assumptions that market participants would use in pricing the asset or liability.
The fair value measurement level for an asset or liability is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs.
The following table summarizes the classes of financial assets and financial liabilities measured and recorded at fair value on a recurring basis:
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
In thousands Ìý Ìý Ìý Ìý Ìý Fair Value Measurement Using:
Ìý Ìý Ìý Ìý Ìý Ìý Quoted Prices Ìý Significant Ìý Ìý
Ìý Ìý Ìý Ìý Ìý Ìý in Active Ìý Other Ìý Significant
Ìý Ìý Total Ìý Markets for Ìý Observable Ìý Unobservable
Ìý Ìý Fair Ìý Identical Assets Ìý Inputs Ìý Inputs
Ìý Ìý Value Ìý (Level 1) Ìý (Level 2) Ìý (Level 3)
JuneÌý2011
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Financial assets:
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Cash equivalents:
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Money market funds
 Ìý $ 275,206 Ìý Ìý $ 275,206 Ìý Ìý $ — Ìý Ìý $ — Ìý
Time deposits
 Ìý Ìý 116,220 Ìý Ìý Ìý 116,220 Ìý Ìý Ìý — Ìý Ìý Ìý — Ìý
Derivative instruments
 Ìý Ìý 23,839 Ìý Ìý Ìý — Ìý Ìý Ìý 23,839 Ìý Ìý Ìý — Ìý
Investment securities
 Ìý Ìý 187,511 Ìý Ìý Ìý 156,100 Ìý Ìý Ìý 31,411 Ìý Ìý Ìý — Ìý
Other marketable securities
 Ìý Ìý 8,991 Ìý Ìý Ìý 8,991 Ìý Ìý Ìý — Ìý Ìý Ìý — Ìý
Ìý
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Financial liabilities:
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Derivative instruments
 Ìý Ìý 63,906 Ìý Ìý Ìý — Ìý Ìý Ìý 63,906 Ìý Ìý Ìý — Ìý
Deferred compensation
 Ìý Ìý 221,981 Ìý Ìý Ìý — Ìý Ìý Ìý 221,981 Ìý Ìý Ìý — Ìý
Ìý
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
DecemberÌý2010
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Financial assets:
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Cash equivalents:
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Money market funds
 Ìý $ 437,229 Ìý Ìý $ 437,229 Ìý Ìý $ — Ìý Ìý $ — Ìý
Time deposits
 Ìý Ìý 93,254 Ìý Ìý Ìý 93,254 Ìý Ìý Ìý — Ìý Ìý Ìý — Ìý
Derivative instruments
 Ìý Ìý 18,568 Ìý Ìý Ìý — Ìý Ìý Ìý 18,568 Ìý Ìý Ìý — Ìý
Investment securities
 Ìý Ìý 182,673 Ìý Ìý Ìý 147,380 Ìý Ìý Ìý 35,293 Ìý Ìý Ìý — Ìý
Other marketable securities
 Ìý Ìý 12,388 Ìý Ìý Ìý 12,388 Ìý Ìý Ìý — Ìý Ìý Ìý — Ìý
Ìý
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Financial liabilities:
 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Derivative instruments
 Ìý Ìý 28,815 Ìý Ìý Ìý — Ìý Ìý Ìý 28,815 Ìý Ìý Ìý — Ìý
Deferred compensation
 Ìý Ìý 212,011 Ìý Ìý Ìý — Ìý Ìý Ìý 212,011 Ìý Ìý Ìý — Ìý
All other financial assets and financial liabilities are carried at cost, which may differ from fair value. At JuneÌý2011 and DecemberÌý2010, the carrying values of ÂÒÂ×°ÍÊ¿'s cash held as demand deposits, accounts receivable, life insurance contracts, short-term borrowings, accounts payable and accrued liabilities approximated their fair values. At JuneÌý2011 and December 2010, the carrying value of ÂÒÂ×°ÍÊ¿'s long-term debt, including the current portion, was $937.3Ìýmillion and $938.6Ìýmillion, respectively, compared with fair value of $1,037.8Ìýmillion and $1,025.1Ìýmillion at those dates. Fair value for long-term debt was estimated based on quoted market prices or values of comparable borrowings.