INVESTMENTS AND FAIR VALUE MEASUREMENTS

Available-For-Sale

The following is a summary of available-for-sale securities as of June 28, 2014 and March 29, 2014 (in thousands):



	Available-for-Sale Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 28, 2014
U.S. government/agency securities	$	102,064	$	1	$	(1	)	$	102,064
Auction rate securities	2,150		—		—			2,150
Money market funds	38,808		—		—			38,808
	$	143,022	$	1	$	(1	)	$	143,022
March 29, 2014
U.S. government/agency securities	$	133,064	$	1	$	—		$	133,065
Auction rate securities	2,150		—		—			2,150
Money market funds	48,800		—		—			48,800
	$	184,014	$	1	$	—		$	184,015

The estimated fair value of available-for-sale securities was based on the prevailing market values on June 28, 2014 and March 29, 2014. We determine the cost of an investment sold based on the specific identification method.

The gross realized gains and losses recognized on available-for-sale securities for the three months ended June 28, 2014 and June 29, 2013, were insignificant.

No available-for-sale investments were in a continuous unrealized loss position as of June 28, 2014 and March 29, 2014.

The amortized cost of available-for-sale investments in debt securities with contractual maturities is as follows (in thousands):



	June 28, 2014				March 29, 2014
	Cost		Estimated Fair Value		Cost		Estimated Fair Value
Due in less than one year	$	140,872	$	140,872	$	181,864	$	181,865
Due after ten years	2,150		2,150		2,150		2,150
Total investments in debt securities	$	143,022	$	143,022	$	184,014	$	184,015

Fair Value Measurements

On a quarterly basis, the Company measures the fair value of its marketable securities, which are comprised of U.S. government/agency securities, auction rate securities (ARS), and money market funds. Marketable securities are reported at fair value in cash and cash equivalents, short-term investments and long-term investments on the Company’s Condensed Consolidated Balance Sheet. The related unrealized gains and losses are included in accumulated other comprehensive loss, a component of shareholders’ equity, net of tax.

Recurring Fair Value Measurements

The fair value of the financial assets measured at fair value on a recurring basis was determined using the following levels of inputs as of June 28, 2014 and March 29, 2014 (in thousands):



	Total		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
June 28, 2014
U.S. government/agency securities	$	102,064	$	102,064	$	—
Auction rate securities	2,150		—		2,150
Money market funds	38,808		38,808		—
	$	143,022	$	140,872	$	2,150
March 29, 2014
U.S. government/agency securities	$	133,065	$	133,065	$	—
Auction rate securities	2,150		—		2,150
Money market funds	48,800		48,800		—
	$	184,015	$	181,865	$	2,150

ARS are debt instruments with interest rates that reset through periodic short-term auctions. The Company’s Level 2 ARS are valued at par based on quoted prices for identical or similar instruments in markets that are not active. As of June 28, 2014 and March 29, 2014, the Company did not have any Level 3 securities.

Nonrecurring Fair Value Measurements

The Company's non-financial assets, such as intangible assets and property and equipment, are measured at fair value when there is an indicator of impairment, and recorded at fair value only when an impairment charge is recognized. The Company did not have any material non-financial assets or liabilities measured at fair value during the three months ended June 28, 2014. During the first quarter of fiscal 2014, the Company recorded a $1.7 million impairment of certain property and equipment as a result of the phase out of manufacturing and the then-pending sale of its U.K. manufacturing facility. As of June 29, 2013, the fair value of these impaired assets was estimated to be $0.8 million using a significant Level 3 unobservable input (market valuation approach). The market valuation approach uses prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as the Company's experience. During the second quarter of fiscal 2014, the Company sold its U.K. manufacturing facility, which resulted in a loss on these impaired assets of $0.6 million.

Other Fair Value Disclosures

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate fair values because of the relatively short-term maturities of these instruments.