Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.5.0.2
Fair Value Measurements
6 Months Ended
Jul. 10, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short term nature or maturity of the instruments.
The following tables present the Company’s assets measured at fair value on a recurring basis as of July 10, 2016 and December 27, 2015 (in thousands):
 
 
July 10, 2016
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Investments in rabbi trust
 
$
8,699

 
$
8,699

 
$

 
$

Total assets measured at fair value
 
$
8,699

 
$
8,699

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
December 27, 2015
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Investments in rabbi trust
 
$
6,863

 
$
6,863

 
$

 
$

Total assets measured at fair value
 
$
6,863

 
$
6,863

 
$

 
$


Other than disclosed in Note 5, Acquisition of Red Robin Franchised Restaurants, as of July 10, 2016 and December 27, 2015, the Company had no financial assets or liabilities that were measured using level 3 inputs. The Company also had no non-financial assets or liabilities that were required to be measured on a recurring basis.
Disclosures of Fair Value of Other Assets and Liabilities
The Company’s liabilities under its credit facility and capital leases are carried at historical cost in the accompanying condensed consolidated balance sheets. For disclosure purposes, the Company estimated the fair value of the credit facility and capital lease obligations using discounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. Both the credit facility and the Company’s capital lease obligations are considered to be level 2 instruments. The following table presents the carrying value and estimated fair value of the Company’s credit facility and capital lease obligations as of July 10, 2016 and December 27, 2015 (in thousands):
 
 
July 10, 2016
 
December 27, 2015
 
 
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
Credit facility
 
$
292,500

 
$
292,330

 
$
202,000

 
$
201,829

Capital lease obligations
 
11,733

 
13,951

 
7,972

 
9,177

Total
 
$
304,233

 
$
306,281

 
$
209,972

 
$
211,006