Fair Value Measurements

3 Months Ended

Jul. 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 July 2, 2016 and April 2, 2016 was as follows (in thousands):

July 2, 2016	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market securities	$	3,081	$	—		$	—	$	3,081
Commercial paper	—		16,891			—		16,891
Total cash equivalents	$	3,081	$	16,891		$	—	$	19,972
Short term investments - available for sale:
U.S. treasury fund	$	1,007	$	—		$	—	$	1,007
Commercial paper	$	—	$	1,546		$	—	$	1,546
Government agencies	$	—	$	1,953		$	—	$	1,953
Total short-term investments - available for sale	$	1,007	$	3,499		$	—	$	4,506
Forward purchase or (sale) contracts:
Japanese Yen	$	—	$	(122	)	$	—	$	(122	)
New Taiwan Dollar	—		(5		)	—		(5		)
Korean Won	—		(6		)	—		(6		)
Euro	—		189			—		189
British Pound	—		(100		)	—		(100		)
Chinese Renminbi	—		(34		)	—		(34		)
Singapore Dollar	—		(1		)	—		(1		)
Total forward contracts	$	—	$	(79	)	$	—	$	(79	)
Deferred compensation plan assets:*
Mutual funds and exchange traded funds	$	2,060	$	—		$	—	$	2,060
Money market securities	730		—			—		730
Total deferred compensation plan assets	$	2,790	$	—		$	—	$	2,790

April 2, 2016	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market securities	$	4,643	$	—		$	—	$	4,643
Commercial paper	—		12,140			—		12,140
Total cash equivalents	$	4,643	$	12,140		$	—	$	16,783
Short term investments - available for sale:
U.S. treasury fund	$	1,003	$	—		$	—	$	1,003
Commercial paper	$	—	$	997		$	—	$	997
Government agencies	—		13,252			—		13,252
Total short-term investments - available for sale	$	1,003	$	14,249		$	—	$	15,252
Forward purchase or (sale) contracts:
Japanese Yen	$	—	$	(31	)	$	—	$	(31	)
New Taiwan Dollar	—		5			—		5
Korean Won	—		129			—		129
Euro	—		(367		)	—		(367		)
Chinese Renminbi	—		(1		)	—		(1		)
Singapore Dollar	—		20			—		20
Total forward contracts	$	—	$	(245	)	$	—	$	(245	)
Deferred compensation plan assets:*
Mutual funds and exchange traded funds	$	1,916	$	—		$	—	$	1,916
Money market securities	588		—			—		588
Total deferred compensation plan assets	$	2,504	$	—		$	—	$	2,504

*These investments represent assets held in trust for the 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 July 2, 2016 and April 2, 2016 were utilized to calculate fair values.

During the first quarter of 2017 and 2016, there were no transfers between Level 1, 2 or 3 assets.

Investments

The Company’s investments at July 2, 2016 and April 2, 2016 were as follows (in thousands):

			Unrealized
July 2, 2016	Cost		Gain		Loss			Fair Value
Available-for-sale securities (current):
Government agencies	1,951		2		—			1,953
Commercial paper	18,437		—		—			18,437
Total investments (current)	$	20,388	$	2	$	—		$	20,390
Available-for-sale securities (non-current):
Mutual funds, exchange traded funds and money market securities*	2,740		50		—			2,790
Total investments (non-current)	$	2,740	$	50	$	—		$	2,790
			Unrealized
April 2, 2016	Cost		Gain		Loss			Fair Value
Available-for-sale securities (current):
Commercial paper	$	13,137	$	—	$	—		$	13,137
Government agencies	13,247		5		—			13,252
Total investments (current)	$	26,384	$	5	$	—		$	26,389
Available-for-sale securities (non-current):
Mutual funds, exchange traded funds and money market securities*	$	2,507	$	—	$	(3	)	$	2,504
Total investments (non-current)	$	2,507	$	—	$	(3	)	$	2,504

*These investments represent assets held in trust for the 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 July 2, 2016 and April 2, 2016.