FINANCIAL INSTRUMENTS AND FAIR VALUE

The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the Company's assets (in thousands) that are measured at fair value on a recurring basis which include total cash equivalent as well as the fair value of plan assets for the employee retirement benefit plan. See Note 16 for more information regarding the employee retirement benefit plan.



	March 29, 2013
	Carrying		Fair Value Measured Using						Total
	Value		Level 1		Level 2		Level 3		Balance
Assets
Money market funds	$	20,012	$	20,012	$	—	$	—	$	20,012
Investments held by insurance companies	6,127		—		6,127		—		6,127
Total assets measured at fair value	$	26,139	$	20,012	$	6,127	$	—	$	26,139



	June 29, 2012
	Carrying		Fair Value Measured Using						Total
	Value		Level 1		Level 2		Level 3		Balance
Assets
U.S treasuries	$	5,530	$	5,530	$	—	$	—	$	5,530
Investments held by insurance companies	6,127		—		6,127		—		6,127
Total assets measured at fair value	$	11,657	$	5,530	$	6,127	$	—	$	11,657

There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three and nine months ended March 29, 2013 and March 30, 2012. The Company’s cash equivalents, consisting of U.S. treasuries and money market funds, are classified within Level 1 of the fair value hierarchy as they were valued using quoted market prices of the identical underlying securities in active markets.

Level 2 assets include investments that are pooled with other investment held by insurance companies within that general funds for our pension plans. The investments held by the insurance companies are valued by taking the percentage owned by the plan in the underlying net asset value of the insurance company's general fund.

The fair values of accounts receivable, accounts payable, and accrued liabilities, due within one year approximates their carrying values because of their short-term nature.

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

As of March 29, 2013 and June 29, 2012, the Company had no assets or liabilities measured at fair value on a non-recurring basis.