Fair Value Of Financial Instruments

3 Months Ended

Jun. 25, 2011

Fair Value Of Financial Instruments

Fair Value Of Financial Instruments

3.     Fair Value of Financial Instruments

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. 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).

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, 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.

• 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.

As of June 25, 2011, the Company's cash and cash equivalents and restricted investments of $47.2 million, and short and long-term investments of $108.4 million, were valued using quoted prices generated by market transactions involving identical assets, or Level 1 assets, as defined under FASB ASC Topic 820.

The following table summarizes the carrying amount and fair value of the Company's financial instruments (in thousands):

	June 25, 2011		March 26, 2011
Financial instruments	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Cash and cash equivalents	$           41,490	$          41,490	$           37,039	$           37,039
Restricted investments	5,755	5,755	5,786	5,786
Marketable securities	107,016	107,016	159,528	159,528
Long-term marketable securities	1,334	1,334	12,702	12,702
	$         155,595	$        155,595	$         215,055	$         215,055

Financial assets with carrying amounts approximating fair value include cash and cash equivalents, restricted investments, and marketable securities.  The carrying amount of these financial assets approximates fair value because of their short maturity.  The fair values of long-term marketable securities are valued using quoted prices generated by market transactions involving identical assets.

The Company's investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with ASC Topic 320 - "Investments – Debt and Equity Securities."  Marketable securities are categorized on the consolidated condensed balance sheet as restricted investments and marketable securities, as appropriate.

        The following table is a summary of available-for-sale securities at June 25, 2011 (in thousands):

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value (Net Carrying Amount)
Corporate securities – U.S.	$          43,723	$                 26	$                 (30)	$                  43,719
U.S. Government securities	21,485	9	-	21,494
Agency discount notes	10,841	6	-	10,847
Commercial paper	32,280	10	-	32,290
Total securities	$        108,329	$                 51	$                 (30)	$                108,350

The Company's specifically identified gross unrealized losses of $30 thousand relates to ten different securities with amortized costs of approximately $21.5 million at June 25, 2011.  The securities with gross unrealized losses have been in a continuous unrealized loss position for less than 12 months as of June 25, 2011.

The following table is a summary of available-for-sale securities at March 26, 2011 (in thousands):

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value (Net Carrying Amount)
Corporate securities – U.S.	$          64,228	$                 22	$                 (38)	$                  64,212
U.S. Government securities	35,268	13	-	35,281
Agency discount notes	16,588	5	(2)	16,591
Commercial paper	56,130	23	(7)	56,146
Total securities	$        172,214	$                 63	$                 (47)	$                172,230

The Company's specifically identified gross unrealized losses of $47 thousand relates to 28 different securities with a total amortized cost of approximately $61.8 million at March 26, 2011.  The securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 26, 2011.