Fair Value Measurements

3 Months Ended

Sep. 28, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable. A description of the three levels of inputs is as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and Liabilities Measured at Fair Value on a recurring basis:

	September 28, 2014
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents
	(in thousands)
Cash	$	144,140	$	—	$	—	$	144,140	$	144,140
Level 1:
Money market funds	30,000		—		—		30,000		30,000
Level 2:
None	—		—		—		—		—
Level 3:
None	—		—		—		—		—
	$	174,140	$	—	$	—	$	174,140	$	174,140
	June 29, 2014
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents
	(in thousands)
Cash	$	128,439	$	—	$	—	$	128,439	$	128,439
Level 1:
Money market funds	30,000		—		—		30,000		30,000
Level 2:
None	—		—		—		—		—
Level 3:
None	—		—		—		—		—
	$	158,439	$	—	$	—	$	158,439	$	158,439

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

The Company measures the fair value of its assets acquired and liabilities assumed in a business combination, and goodwill and other long lived assets when they are held for sale or determined to be impaired. There were no such non-recurring measurements during the first quarter of fiscal 2015.

Fair Value of Financial Instruments Not Measured at Fair Value

The total fair value of the Convertible Senior Notes at September 28, 2014 was $155.5 million, which was estimated based on recent market transaction prices, a Level 2 fair value measurement.