Fair Value Measurements

9 Months Ended

Jan. 02, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Financial Assets and Liabilities Measured at Fair Value

ASC Topic 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include the following:

• Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;

• Level 2, defined as inputs that are observable either directly or indirectly such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and other inputs that can be corroborated by observable market data; and

• Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of January 2, 2016 and March 28, 2015 was as follows (in thousands):

January 2, 2016	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market securities	$	3,004	$	—		$	—	$	3,004
Commercial paper	—		8,948			—		8,948
Government agencies	—		1,604			—		1,604
Total cash equivalents	$	3,004	$	10,552		$	—	$	13,556
Short term investments - available for sale:
Government agencies	$	—	$	18,836		$	—	$	18,836
Total short-term investments - available for sale	$	—	$	18,836		$	—	$	18,836
Forward purchase or (sale) contracts:
Japanese Yen	$	—	$	(58	)	$	—	$	(58	)
New Taiwan Dollar	—		(10		)	—		(10		)
Korean Won	—		(68		)	—		(68		)
Euro	—		(261		)	—		(261		)
British Pound	—		(60		)	—		(60		)
Chinese Renminbi	—		(17		)	—		(17		)
Total forward contracts	$	—	$	(474	)	$	—	$	(474	)
Deferred compensation plan assets:*
Mutual funds and exchange traded funds	$	1,906	$	—		$	—	$	1,906
Money market securities	543		—			—		543
Total deferred compensation plan assets	$	2,449	$	—		$	—	$	2,449

March 28, 2015	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market securities	$	14,280	$	—		$	—	$	14,280
Commercial paper	—		15,537			—		15,537
Government agencies	—		2,702			—		2,702
Total cash equivalents	$	14,280	$	18,239		$	—	$	32,519
Short term investments - available for sale:
Corporate bonds	$	—	$	853		$	—	$	853
Municipal bonds	—		3,872			—		3,872
Total short-term investments - available for sale	$	—	$	4,725		$	—	$	4,725
Forward purchase or (sale) contracts:
Japanese Yen	$	—	$	(7	)	$	—	$	(7	)
New Taiwan Dollar	—		17			—		17
Korean Won	—		(44		)	—		(44		)
Euro	—		277			—		277
British Pound	—		(133		)	—		(133		)
Chinese Renminbi	—		(34		)	—		(34		)
Total forward contracts	$	—	$	76		$	—	$	76
Deferred compensation plan assets:* :
Mutual funds and exchange traded funds	$	1,885	$	—		$	—	$	1,885
Money market securities	190		—			—		190
Total deferred compensation plan assets	$	2,075	$	—		$	—	$	2,075

*These investments represent assets held in trust for our deferred compensation plan

For Level 1 assets, the Company utilized quoted prices in active markets for identical assets.

For Level 2 assets, exclusive of forward contracts, the Company utilized quoted prices in active markets for similar assets. For forward contracts, spot prices at January 2, 2016 and March 28, 2015 were utilized to calculate fair values.

During the first three quarters of 2016 and 2015, there were no transfers between Level 1, 2 or 3 assets.

Investments

The Company’s investments at January 2, 2016 and March 28, 2015 were as follows (in thousands):

			Unrealized
January 2, 2016	Cost		Gain		Loss			Fair Value
Available-for-sale securities (current):
Government agencies	20,437		3		—			20,440
Commercial paper	8,948		—		—			8,948
Mutual funds and exchange traded funds*	2,454		—		(5		)	2,449
Total Investments	$	31,839	$	3	$	(5	)	$	31,837
			Unrealized
March 28, 2015	Cost		Gain		Loss			Fair Value
Available-for-sale securities (current):
Commercial paper	$	15,537	$	—	$	—		$	15,537
Municipal bonds	3,870		2		—			3,872
Government agencies	2,702		—		—			2,702
Corporate bonds	853		—		—			853
Mutual funds and exchange traded funds*	1,950		125		—			2,075
Total Investments	$	24,912	$	127	$	—		$	25,039

*These investments represent assets held in trust for our deferred compensation plan

For purposes of determining gross realized gains and losses and reclassification out of accumulated other comprehensive income (loss), the cost of securities sold is based on specific identification. Net unrealized holding gains and losses on current available-for-sale securities included in accumulated other comprehensive income (loss) were insignificant as of January 2, 2016 and March 28, 2015.

Investments with underlying maturities within one year at January 2, 2016, including cash equivalents, totaled $31.8 million.