Fair Value Measurements

12 Months Ended

Jun. 29, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Generally accepted accounting principles (GAAP) defines fair value, establishes a framework for measuring fair value and establishes disclosure requirements about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We considered non-performance risk when determining fair value of our derivative financial instruments. The fair value hierarchy prescribed under GAAP contains the following three levels:

Level 1 — unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date.

Level 2 — other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:

-quoted prices for similar assets or liabilities in active markets;

-quoted prices for identical or similar assets in non-active markets;

-inputs other than quoted prices that are observable for the asset or liability; and

-inputs that are derived principally from or corroborated by other observable market data.

Level 3 — unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

Except for assets included in our pension portfolio, we do not have any level 3 assets or liabilities and we have not transferred any items between fair value levels during fiscal year 2013. See Note 12, "Employee Benefit Plans" for additional information regarding our pension plan assets.

The following tables summarize the assets and liabilities measured at fair value on a recurring basis as of June 29, 2013 and June 30, 2012:

	As of June 29, 2013
	Fair Value Measurements Using Inputs Considered as
	Level 1		Level 2		Total
Other assets:
Money market mutual funds	$	2,964	$	—	$	2,964
Equity and fixed income mutual funds	23,811		—		23,811
Cash surrender value of life insurance policies	—		13,377		13,377
Total assets	$	26,775	$	13,377	$	40,152
Accrued expenses:
Derivative financial instruments	$	—	$	1,136	$	1,136
Total liabilities	$	—	$	1,136	$	1,136

	As of June 30, 2012
	Fair Value Measurements Using Inputs Considered as
	Level 1		Level 2		Total
Other assets:
Money market mutual funds	$	3,185	$	—	$	3,185
Equity and fixed income mutual funds	18,851		—		18,851
Cash surrender value of life insurance policies	—		12,971		12,971
Total assets	$	22,036	$	12,971	$	35,007
Accrued expenses:
Derivative financial instruments	$	—	$	1,432	$	1,432
Total liabilities	$	—	$	1,432	$	1,432

The cash surrender value of life insurance policies are primarily investments established to fund the obligations of the company's non-qualified, non-contributory supplemental executive retirement plan (SERP). The money market, equity and fixed income mutual funds are investments established to fund the company’s non-qualified deferred compensation plan.

The following tables summarize the fair value of assets and liabilities that are recorded at historical cost as of June 29, 2013 and June 30, 2012:

	As of June 29, 2013
	Fair Value Measurements Using Inputs Considered as
	Level 1		Level 2		Total
Cash and cash equivalents	$	38,590	$	—	$	38,590
Total assets	$	38,590	$	—	$	38,590
Current maturities of long-term debt	$	—	$	18	$	18
Long-term debt, net of current maturities	—		175,000		175,000
Total liabilities	$	—	$	175,018	$	175,018

	As of June 30, 2012
	Fair Value Measurements Using Inputs Considered as
	Level 1		Level 2		Total
Cash and cash equivalents	$	19,604	$	—	$	19,604
Total assets	$	19,604	$	—	$	19,604
Current maturities of long-term debt	$	—	$	206	$	206
Long-term debt, net of current maturities	—		218,018		218,018
Total liabilities	$	—	$	218,224	$	218,224

The fair value of our long-term debt approximates its book value and is based on the amount that would be paid to transfer the liability to a credit-equivalent market participant at the measurement date.