Fair Value of Financial Instruments (Tables)

9 Months Ended

Oct. 01, 2011

Fair Value of Financial Instruments

Financial assets and liabilities measured at fair value on a recurring basis

	Fair Value Measurements at October 1, 2011 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Cash Equivalents:
Money market funds	$	66,328	$	—	$	—	$	66,328
Total cash equivalents	$	66,328	$	—	$	—	$	66,328
Short-term Investments:
Corporate bonds	$	—	$	80,060	$	—	$	80,060
Municipal bonds	—		56,402		—		56,402
Variable-rate demand notes	—		13,200		—		13,200
U.S. government agency	—		10,048		—		10,048
U.S. Treasury bills	8,600		—		—		8,600
International government bonds	—		2,792		—		2,792
Certificates of deposit	—		1,569		—		1,569
Asset-backed securities	—		1,244		—		1,244
Commercial paper	—		1,000		—		1,000
Total short-term investments	$	8,600	$	166,315	$	—	$	174,915
Long-term Investments:
Auction rate securities	$	—	$	—	$	17,840	$	17,840
Total long-term investments	$	—	$	—	$	17,840	$	17,840
Total	$	74,928	$	166,315	$	17,840	$	259,083
Liabilities:
Derivative instruments	$	—	$	2,526	$	—	$	2,526
Contingent consideration	—		—		1,523		1,523
Total	$	—	$	2,526	$	1,523	$	4,049

	Fair Value Measurements at January 1, 2011 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2) (1)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Cash Equivalents:
U.S. Treasury bills	$	50,097	$	—	$	—	$	50,097
Money market funds	45,167		—		—		45,167
Commercial paper	—		2,659		—		2,659
Total cash equivalents	$	95,264	$	2,659	$	—	$	97,923
Short-term Investments:
Corporate bonds	$	—	$	88,518	$	—	$	88,518
Variable-rate demand notes	—		39,425		—		39,425
Municipal bonds	—		38,414		—		38,414
U.S. government agency	—		34,680		—		34,680
International government bonds	—		10,830		—		10,830
U.S. Treasury bills	6,999		—		—		6,999
Certificates of deposit	—		5,742		—		5,742
Commercial paper	—		2,687		—		2,687
Total short-term investments	$	6,999	$	220,296	$	—	$	227,295
Long-term Investments:
Auction rate securities	$	—	$	—	$	17,500	$	17,500
Total long-term investments	$	—	$	—	$	17,500	$	17,500
Total	$	102,263	$	222,955	$	17,500	$	342,718
Liabilities:
Derivative instruments	$	—	$	3,811	$	—	$	3,811
Contingent consideration	—		—		1,780		1,780
Total	$	—	$	3,811	$	1,780	$	5,591

Summary of activity in Level 3 financial instruments

Assets

Auction Rate Securities	Three Months Ended			Nine Months Ended
Beginning balance	$	17,196		$	17,500
Settlements	(150		)	(450		)
Unrealized gains	794			790
Balance at October 1, 2011	$	17,840		$	17,840

Liabilities

Contingent Consideration (1)	Three Months Ended			Nine Months Ended
Beginning balance	$	2,034		$	1,780
Issuances	—			1,025
Recognized net gain (2)	(511		)	(1,282		)
Balance at October 1, 2011	$	1,523		$	1,523
Net gain for period included in earnings attributable to contingent consideration still held at October 1, 2011:	$	511		$	1,282

(1)In connection with the acquisitions of Spectra Linear and ChipSensors, the Company recorded contingent consideration based upon the achievement of certain milestone goals. Changes to the fair value of contingent consideration due to changes in assumptions used in preparing the discounted cash flow model are recorded in selling, general and administrative expenses in the Consolidated Statement of Income. Changes resulting from foreign currency remeasurement adjustments to the contingent consideration liability are recorded in other income (expense), net.

(2)The Company reduced the estimated fair value of contingent consideration based on the expectation that certain milestone goals will no longer be achieved.