Fair Value Measurements

3 Months Ended

Oct. 01, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

4. Fair Value Measurements

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.

We have not transferred any items between fair value levels during the first quarters of fiscal 2011 and 2012. In addition, we valued our level 2 assets and liabilities by reference to information provided by independent third parties for similar assets and liabilities in active markets.

The following tables summarize the balances of assets and liabilities measured at fair value on a recurring basis as of October 1, 2011 and July 2, 2011:

	As of October 1, 2011
	Fair Value Measurements Using Inputs Considered as
	Level 1		Level 2		Total
Other assets:
Non-qualified, non-contributory retirement plan assets	$	—	$	10.0	$	10.0
Non-qualified deferred compensation plan assets		21.4		—		21.4
Total assets	$	21.4	$	10.0	$	31.4
Accrued expenses:
Derivative financial instruments	$	—	$	1.6	$	1.6
Total liabilities	$	—	$	1.6	$	1.6

	As of July 2, 2011
	Fair Value Measurements Using Inputs Considered as
	Level 1		Level 2		Total
Other assets:
Non-qualified, non-contributory retirement plan assets	$	—	$	10.3	$	10.3
Non-qualified deferred compensation plan assets		21.8		—		21.8
Total assets	$	21.8	$	10.3	$	32.1
Accrued expenses:
Derivative financial instruments	$	—	$	2.1	$	2.1
Total liabilities	$	—	$	2.1	$	2.1

The non-qualified, non-contributory retirement plan assets above consist primarily of the cash surrender value of life insurance policies and the non-qualified deferred compensation plan assets above consist primarily of various equity, fixed income and money market mutual funds.

We do not have any level 3 assets or liabilities, and the fair value of cash and cash equivalents, trade receivables and borrowings under the various credit agreements approximates the amounts recorded.