Investments in Marketable Securities

9 Months Ended

Mar. 28, 2015

Investments In Marketable Securities [Abstract]

INVESTMENTS IN MARKETABLE SECURITIES

16. INVESTMENTS IN MARKETABLE SECURITIES

The Company’s policy is to invest in instruments with investment grade credit ratings. The Company classifies its short-term investments as “available-for-sale” securities and the Company bases the cost of securities sold using the specific identification method. The Company accounts for unrealized gains and losses on its available-for-sale securities as a separate component of shareholders’ equity in the consolidated balance sheets in the period in which the gain or loss occurs. At March 28, 2015, a summary of investments by major security type is as follows:

	As of March 28, 2015
								Net
								Unrealized
	Amortized		Unrealized		Unrealized			Gains
(in thousands)	Cost		Gains		Losses			(Losses)		Fair Value
Available-for-Sale Securities
Time deposits	$	25,644	$	-	$	-		$	-	$	25,644
Repurchase agreements		-		-		-			-		-
US Treasury securities		2,000		-		-			-		2,000
National government and agency securities		3,887		86		-			86		3,973
State and municipal bond obligations		5,672		36		(2	)		34		5,706
Corporate bonds and notes		49,872		330		(110	)		220		50,092
Asset backed securities		7,897		19		(17	)		2		7,899
Mortgage backed securities		4,505		9		(4	)		5		4,510
Total	$	99,477	$	480	$	(133	)	$	347	$	99,824

At June 28, 2014 a summary of investments by major security type is as follows:

	As of June 28, 2014
								Net
								Unrealized
	Amortized		Unrealized		Unrealized			Gains
(in thousands)	Cost		Gains		Losses			(Losses)		Fair Value
Available-for-Sale Securities
Time deposits	$	17,693	$	-	$	-		$	-	$	17,693
Repurchase agreements		500		-		-			-		500
US Treasury securities		526		1		-			1		527
National government and agency securities		4,962		95		(2	)		93		5,055
State and municipal bond obligations		7,090		63		(4	)		59		7,149
Corporate bonds and notes		42,675		249		(143	)		106		42,781
Asset backed securities		7,592		28		(6	)		22		7,614
Mortgage backed securities		4,766		26		(7	)		19		4,785
Total	$	85,804	$	462	$	(162	)	$	300	$	86,104

The above investments are included in short-term investments in marketable securities on the Company’s condensed consolidated balance sheets.

The following tables show the unrealized losses and fair market values of the Company’s investments that have unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 28, 2015 and June 28, 2014:

	Continuous Unrealized Losses at March 28, 2015
	Less Than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in thousands)	Value		Losses		Value		Losses		Value		Losses
US Treasury securities	$	2,000	$	-	$	-	$	-	$	2,000	$	-
National government and agency securities		-		-		30		-		30		-
State and municipal bond obligations		1,187		2		-		-		1,187		2
Corporate bonds and notes		8,857		105		1,807		5		10,664		110
Asset backed securities		2,368		14		652		3		3,020		17
Mortgage backed securities		1,503		4		335		-		1,838		4
Total	$	15,915	$	125	$	2,824	$	8	$	18,739	$	133
	Continuous Unrealized Losses at June 28, 2014
	Less Than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in thousands)	Value		Losses		Value		Losses		Value		Losses
National government and agency securities	$	282	$	1	$	91	$	1	$	373	$	2
State and municipal bond obligations		-		-		695		4		695		4
Corporate bonds and notes		3,901		11		5,801		132		9,702		143
Asset backed securities		895		1		1,195		5		2,090		6
Mortgage backed securities		1,083		3		504		4		1,587		7
Total	$	6,161	$	16	$	8,286	$	146	$	14,447	$	162

The unrealized losses are of a temporary nature due to the Company’s intent and ability to hold the investments until maturity or until the cost is recoverable. The unrealized losses are primarily due to fluctuations in market interest rates. The Company reports unrealized gains and losses on its “available-for-sale” securities in accumulated other comprehensive income in shareholders’ equity.

The Company records gains or losses realized on sales of available-for-sale securities in interest and other income on its condensed consolidated statements of operations. The cost of securities sold is based on the specific identification of the security and its amortized cost. For the nine months ended March 28, 2015 and March 29, 2014, proceeds from sales and maturities of available-for-sale securities were $64.6 million and $46.5 million, respectively, and realized gains were $172,000 and $119,000, respectively.

The following table lists the fair market value of the Company’s short-term investments by length of time to maturity as of March 28, 2015. Securities with maturities over multiple dates are mortgage-backed securities (“MBS”) or asset-backed securities (“ABS”) featuring periodic principle paydowns through 2041.

	March 28,
(in thousands)	2015
Contractual Maturities
Less than 12 months	$	25,623
One to three years		47,529
Over three years		20,633
Multiple dates		6,039
Total	$	99,824