Fair Value Measurements

9 Months Ended

Mar. 29, 2015

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:



	March 29, 2015
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents
	(in thousands)
Cash	$	172,734	$	—	$	—	$	172,734	$	172,734
Level 1:
Money market funds	30,000		—		—		30,000		30,000
Level 2:
None	—		—		—		—		—
Level 3:
None	—		—		—		—		—
	$	202,734	$	—	$	—	$	202,734	$	202,734

	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.

During the third quarter of fiscal 2015, a decline in the Visibility reporting unit's forecasted revenues and profits below the Company's expectations relative to previous projections led to an interim assessment of goodwill and intangible asset impairment. The preliminary conclusion of the impairment analysis resulted in the impairment of goodwill and intangible assets of this reporting unit. Accordingly, the Company recorded a preliminary non-cash impairment charge of approximately $57.9 million, consisting of a goodwill impairment charge of approximately $35.3 million and an intangible asset impairment charge of approximately $22.6 million related to the Visibility reporting unit during the third quarter of fiscal 2015 (See Note 4). Fair value was determined based on a discounted cash flow analysis which contains significant unobservable inputs that fall within Level 3 of the fair value hierarchy under U.S. GAAP.

Fair Value of Financial Instruments Not Measured at Fair Value

The total fair value of the Convertible Senior Notes at March 29, 2015 was $177.5 million, which was estimated based on recent market transaction prices, a Level 2 fair value measurement.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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