3. 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 September 30, 2017 and April 1, 2017 was as follows (in thousands):



September 30, 2017	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market securities	$	2,182	$	—		$	—	$	2,182
U.S. treasury fund	5,997		—			—		5,997
Commercial paper	—		4,796			—		4,796
Repurchase agreements	—		5,000			—		5,000
Total cash equivalents	$	8,179	$	9,796		$	—	$	17,975
Short term investments - available for sale:
U.S. treasury fund	$	1,504	$	—		$	—	$	1,504
Commercial paper	—		29,097			—		29,097
Corporate bonds	—		2,201			—		2,201
Total short-term investments - available for sale	$	1,504	$	31,298		$	—	$	32,802
Forward purchase or (sale) contracts:
Japanese Yen	$	—	$	54		$	—	$	54
New Taiwan Dollar	—		(18		)	—		(18		)
Korean Won	—		(21		)	—		(21		)
Euro	—		47			—		47
British Pound	—		81			—		81
Chinese Renminbi	—		14			—		14
Total forward contracts	$	—	$	157		$	—	$	157
Deferred compensation plan assets:*
Mutual funds and exchange traded funds	$	2,519	$	—		$	—	$	2,519
Money market securities	954		—			—		954
Total deferred compensation plan assets	$	3,473	$	—		$	—	$	3,473



April 1, 2017	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market securities	$	22,395	$	—		$	—	$	22,395
Commercial paper	—		4,945			—		4,945
Total cash equivalents	$	22,395	$	4,945		$	—	$	27,340
Short term investments - available for sale:
Commercial paper	$	—	$	5,743		$	—	$	5,743
Total short-term investments - available for sale	$	—	$	5,743		$	—	$	5,743
Forward purchase or (sale) contracts:
Japanese Yen	$	—	$	9		$	—	$	9
New Taiwan Dollar	—		20			—		20
Korean Won	—		39			—		39
Euro	—		(96		)	—		(96		)
British Pound	—		16			—		16
Chinese Renminbi	—		(5		)	—		(5		)
Singapore Dollar	—		(1		)	—		(1		)
Total forward contracts	$	—	$	(18	)	$	—	$	(18	)
Deferred compensation plan assets:*
Mutual funds and exchange traded funds	$	845	$	—		$	—	$	845
Money market securities	2,213		—			—		2,213
Total deferred compensation plan assets	$	3,058	$	—		$	—	$	3,058

*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 September 30, 2017 and April 1, 2017 were utilized to calculate fair values.

During the first two quarters of 2018 and 2017, there were no transfers between Level 1, 2 or 3 assets.

Investments

The Company’s investments, other than money market securities for which there is no unrealized gain or loss, at September 30, 2017 and April 1, 2017 were as follows (in thousands):



			Unrealized
September 30, 2017	Cost		Gain		Loss			Fair Value
Available-for-sale securities (current):
U.S. treasury fund	$	7,501	$	—	$	—		$	7,501
Commercial paper	33,893		—		—			33,893
Corporate Bonds	2,202		—		(1		)	2,201
Repurchase Agreements	5,000		—		—			5,000
Total investments (current)	$	48,596	$	—	$	(1	)	$	48,595
Available-for-sale securities (non-current):
Mutual funds, exchange traded funds and money market securities*	$	3,247	$	226	$	—		$	3,473
Total investments (non-current)	$	3,247	$	226	$	—		$	3,473
			Unrealized
April 1, 2017	Cost		Gain		Loss			Fair Value
Available-for-sale securities (current):
Commercial paper	$	10,688	$	—	$	—		$	10,688
Total investments (current)	$	10,688	$	—	$	—		$	10,688
Available-for-sale securities (non-current):
Mutual funds, exchange traded funds and money market securities*	$	2,974	$	84	$	—		$	3,058
Total investments (non-current)	$	2,974	$	84	$	—		$	3,058

*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 September 30, 2017 and April 1, 2017.