Fair Values

3 Months Ended

Dec. 29, 2012

Fair Value Disclosures [Abstract]

Fair Values

FAIR VALUES

We measure our cash equivalents and marketable securities at fair value. The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 valuations are obtained from quoted market prices in active markets involving similar assets; these instruments, which mature within one year and are issued by counterparties with high credit ratings, include U.S. Treasury and international government obligations, investment-grade corporate bonds, certificates of deposit and commercial paper. Level 3 valuations would be based on unobservable inputs to a valuation model and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. As of December 29, 2012 and September 29, 2012, we did not have any assets or liabilities valued based on Level 3 valuations.

Financial assets and liabilities measured at fair value as of December 29, 2012 are summarized below (in thousands):

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Total Fair Value
	(Level 1)		(Level 2)
Money market fund deposits (1)	$	20,932	$	—	$	20,932
Certificates of deposit (2)(7)	—		7,299		7,299
U.S. government obligations (3)(7)	—		86,647		86,647
Corporate notes and obligations (4)(7)	—		8,129		8,129
Commercial paper (1)(7)	—		1,999		1,999
Foreign currency contracts (5)(8)	—		1,092		1,092
Mutual funds — Deferred comp and supplemental plan (6)(9)	6,770		—		6,770

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(1) Included in cash and cash equivalents on the Condensed Consolidated Balance Sheet. The carrying amounts approximate fair value due to the short-term maturities of the cash equivalents.

(2) Includes $5,278 recorded in cash and cash equivalents and $2,021 recorded in short-term investments on the Condensed Consolidated Balance Sheet.

(3) Includes $5,016 recorded in cash and cash equivalents and $81,631 recorded in short-term investments on the Condensed Consolidated Balance Sheet.

(4) Included in short-term investments on the Condensed Consolidated Balance Sheet.

(5) Includes $1,240 recorded in prepaid expenses and other assets and $148 recorded in other current liabilities on the Condensed Consolidated Balance Sheet (see Note 5).

(6) Includes $2,940 recorded in prepaid expenses and other assets and $3,830 recorded in other assets on the Condensed Consolidated Balance Sheet.

(7) Valuations are based upon quoted market prices in active markets involving similar assets. The market inputs used to value these instruments generally consist of market yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Pricing sources include industry standard data providers, security master files from large financial institutions, and other third party sources which are input into a distribution-curve-based algorithm to determine a daily market value. This creates a “consensus price” or a weighted average price for each security.

(8) The principal market in which we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. Our foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment.

(9) The fair value of mutual funds is determined based on quoted market prices. Securities traded on a national exchange are stated at the last reported sales price on the day of valuation; other securities traded in over-the-counter market and listed securities for which no sale was reported on that date are stated as the last quoted bid price.

Financial assets and liabilities measured at fair value as of September 29, 2012 are summarized below (in thousands):

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs			Total Fair Value
	(Level 1)		(Level 2)
Money market fund deposits(1)	$	10,340	$	—		$	10,340
Certificates of deposit(2)(7)	—		31,253			31,253
U.S. and international government obligations(3)(7)	—		110,967			110,967
Corporate notes and obligations(4)(7)	—		43,406			43,406
Commercial paper (3)(7)	—		2,000			2,000
Foreign currency contracts(5)(8)	—		(21		)	(21		)
Mutual funds—Deferred comp and supplemental plan(6)(9)	6,400		—			6,400

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(1) Included in cash and cash equivalents on the Condensed Consolidated Balance Sheet. The carrying amounts approximate fair value due to the short-term maturities of the cash equivalents.

(2) Includes $29,234 recorded in cash and cash equivalents and $2,019 recorded in short-term investments on the Condensed Consolidated Balance Sheet.

(3) Included in short-term investments on the Condensed Consolidated Balance Sheet.

(4) Includes $1,223 recorded in cash and cash equivalents and $42,183 recorded in short-term investments on the Condensed Consolidated Balance Sheet.

(5) Includes $626 recorded in prepaid expenses and other assets and $645 recorded in other current liabilities on the Condensed Consolidated Balance Sheet.

(6) Includes $2,891 recorded in prepaid expenses and other assets and $3,509 recorded in other assets on the Condensed Consolidated Balance Sheet.

(7) Valuations are based upon quoted market prices in active markets involving similar assets. The market inputs used to value these instruments generally consist of market yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Pricing sources include industry standard data providers, security master files from large financial institutions, and other third party sources which are input into a distribution-curve-based algorithm to determine a daily market value. This creates a “consensus price” or a weighted average price for each security.

(8) The principal market in which we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. Our foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment.

(9) The fair value of mutual funds is determined based on quoted market prices. Securities traded on a national exchange are stated at the last reported sales price on the day of valuation; other securities traded in over-the-counter market and listed securities for which no sale was reported on that date are stated as the last quoted bid price.