Fair Value Measurement

3 Months Ended

Jul. 03, 2016

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of July 3, 2016:



	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	50,396	$	—	$	—	$	50,396
Money market funds	38,408		—		—		38,408
Asset-backed securities	—		10,337		—		10,337
Corporate bonds			120,287		—		120,287
International government bonds	—		2,229		—		2,229
Corporate commercial paper	—		5,972		—		5,972
Bank deposits	—		10,040		—		10,040
Repurchase agreement	—		367		—		367
Municipal bonds	—		900		—		900
Total assets measured at fair value	$	88,804	$	150,132	$	—	$	238,936

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of April 3, 2016:



	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	32,519	$	—	$	—	$	32,519
Money market funds	124,504		—		—		124,504
Asset-backed securities	—		10,515		—		10,515
Corporate bonds	—		91,388		—		91,388
International government bonds	—		2,208		—		2,208
Corporate commercial paper	—		1,992		—		1,992
Bank deposits	—		11,711		—		11,711
Repurchase agreements	—		114		—		114
Municipal bonds	—		900		—		900
Total assets measured at fair value	$	157,023	$	118,828	$	—	$	275,851

The deferred compensation plan assets of $15.0 million and $14.6 million as of July 3, 2016 and April 3, 2016, are carried on the Condensed Consolidated Balance Sheets at their fair value which were determined on the basis of market prices observable for similar instruments and are considered Level 2 in the fair value hierarchy. See Note 17 for additional information on the Employee Benefit Plans.

The convertible notes are carried on the Condensed Consolidated Balance Sheets at their original issuance value including accreted interest, net of unamortized debt discount and issuance cost. The Convertible Notes are not marked to fair value at the end of each reporting period. The fair value of Convertible Notes was $364.2 million and $351.5 million as of July 3, 2016 and April 3, 2016, which was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. See Note 18 for additional information on the Convertible Notes.

U.S. government treasuries and U.S. government agency securities as of July 3, 2016 and April 3, 2016 do not include any U.S. government guaranteed bank issued paper.

The securities in Level 1 are highly liquid and actively traded in exchange markets or over-the-counter markets. Level 2 fixed income securities are priced using quoted market prices for similar instruments, non-binding market prices that are corroborated by observable market data.

All of the Company’s available-for-sale investments are subject to a periodic impairment review. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company did not record any impairment charges related to its available-for-sale investments in the three months ended July 3, 2016 and June 28, 2015.

- 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.

+ References + Details