Annual report pursuant to Section 13 and 15(d)

Note 5 - Fair Value Measurements

v3.7.0.1
Note 5 - Fair Value Measurements
12 Months Ended
Dec. 25, 2016
Notes to Financial Statements  
Fair Value, Measurement Inputs, Disclosure [Text Block]
(5)
Fair Value Measurements
 
Fair value is defined under FASB ASC Topic
820,
Fair Value Measurements and Disclosures (Topic
820),
as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Topic
820
also establishes a
three
-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
 
The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The
three
levels of inputs are:
 
Level
1—quoted
prices (unadjusted) for an identical asset or liability in an active market.
 
Level
2—quoted
prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability.
 
Level
3—unobservable
and significant to the fair value measurement of the asset or liability.
 
The following were used to estimate the fair value of each class of financial instruments:
 
The carrying amount of cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses and other current liabilities are a reasonable estimate of their fair values due to their short duration.
 
Borrowings under the senior credit facility as of
December
25,
2016
and
December
27,
2015
have variable interest rates that reflect currently available terms and conditions for similar debt. The carrying amount of this debt is a reasonable estimate of its fair value (Level
2).
 
The Company did
not
have any non-financial assets measured at fair value on a non-recurring basis as of the end of fiscal years
2016
or
2015.
 
See Notes
6
and
7
for a description of the valuation techniques used to measure fair value of intangibles and long-lived assets, as well as
information used to develop the inputs to the fair value measurements.