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Fair Value Measurements
9 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, available-for-sale securities, trading securities and foreign currency derivatives. Fair value is measured based on a fair value hierarchy following three levels of inputs, of which the first two are considered observable and the last unobservable:

• 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; 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.


The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis:
 
March 31, 2013
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
Federal agency notes
$

 
$
5,513

 
$

 
$
5,513

Money market funds
54,179

 

 

 
54,179

Corporate notes/bonds

 
105,994

 

 
105,994

Foreign currency forward contracts

 
26

 

 
26

Total
$
54,179

 
$
111,533

 
$

 
$
165,712


June 30, 2012
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
Municipal bonds
$

 
$
2,736

 
$

 
$
2,736

Federal agency notes

 
11,234

 

 
11,234

Money market funds
36,141

 

 

 
36,141

Corporate notes/bonds

 
84,949

 

 
84,949

Foreign currency forward contracts

 
179

 

 
179

Total
$
36,141

 
$
99,098

 
$

 
$
135,239


Level 2 investment valuations are based on inputs such as quoted market prices of similar instruments, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, and state, municipal and provincial obligations. There were no transfers of assets or liabilities between Level 1 and Level 2 during the three and nine months ended March 31, 2013 and April 1, 2012.