Investments in Marketable Securities

3 Months Ended

Sep. 26, 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 unrealized gain or loss occurs. As of September 26, 2015, a summary of investments by major security type is as follows:

	As of September 26, 2015
								Net
								Unrealized
	Amortized		Unrealized		Unrealized			Gains
(in thousands)	Cost		Gains		Losses			(Losses)			Fair Value
Available-for-Sale Securities
Time deposits	$	19,264	$	-	$	-		$	-		$	19,264
Repurchase agreements		-		-		-			-			-
National government and agency securities		3,180		61		-			61			3,241
State and municipal bond obligations		5,201		50		(9	)		41			5,242
Corporate bonds and notes		39,386		76		(274	)		(198	)		39,188
Asset backed securities		7,634		12		(27	)		(15	)		7,619
Mortgage backed securities		4,419		2		(17	)		(15	)		4,404
Total	$	79,084	$	201	$	(327	)	$	(126	)	$	78,958
As of June 27, 2015 a summary of investments by major security type is as follows:
	As of June 27, 2015
								Net
								Unrealized
	Amortized		Unrealized		Unrealized			Gains
(in thousands)	Cost		Gains		Losses			(Losses)			Fair Value
Available-for-Sale Securities
Time deposits	$	22,157	$	-	$	-		$	-		$	22,157
National government and agency securities		4,612		64		(3	)		61			4,673
State and municipal bond obligations		4,488		13		(11	)		2			4,490
Corporate bonds and notes		46,889		168		(200	)		(32	)		46,857
Asset backed securities		6,994		12		(20	)		(8	)		6,986
Mortgage backed securities		5,143		11		(13	)		(2	)		5,141
Total	$	90,283	$	268	$	(247	)	$	21		$	90,304

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, as of September 26, 2015 and June 27, 2015:

	Continuous Unrealized Losses at September 26, 2015
	Less Than 12 Months				12 Months or Longer				Total
			Unrealized				Unrealized				Unrealized
(in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
National government and agency securities	$	-	$	-	$	-	$	-	$	-	$	-
State and municipal bond obligations		593		6		607		3		1,200		9
Corporate bonds and notes		18,266		239		1,758		35		20,024		274
Asset backed securities		2,404		12		424		15		2,828		27
Mortgage backed securities		3,200		17		-		-		3,200		17
Total	$	24,463	$	274	$	2,789	$	53	$	27,252	$	327
	Continuous Unrealized Losses at June 27, 2015
	Less Than 12 Months				12 Months or Longer				Total
			Unrealized				Unrealized				Unrealized
(in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
National government and agency securities	$	1,411	$	3	$	190	$	-	$	1,601	$	3
State and municipal bond obligations		928		4		1,077		7		2,005		11
Corporate bonds and notes		20,621		188		2,893		12		23,514		200
Asset backed securities		1,961		16		1,061		4		3,022		20
Mortgage backed securities		2,023		12		336		1		2,359		13
	$	26,944	$	223	$	5,557	$	24	$	32,501	$	247

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, net 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 three month periods ended September 26, 2015 and September 27, 2014, proceeds from sales and maturities of available-for-sale securities were $20.8 million and $15.3 million, respectively, and realized losses were $37,000 and $6,000, respectively.

The following table lists the fair market value of the Company’s short-term investments by length of time to maturity as of September 26, 2015. Securities with maturities over multiple dates are mortgage-backed (“MBS”) or asset-backed securities (“ABS”) featuring periodic principle paydowns through 2042.

	September 26,
(in thousands)	2015
Contractual Maturities
Less than 12 months	$	21,985
One to three years		35,128
Over three years		16,699
Multiple dates		5,146
Total	$	78,958