Fair Value Measurements

3 Months Ended

Mar. 29, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 5: FAIR VALUE MEASUREMENTS

The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below.

The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:

• Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

• Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company primarily uses broker quotes for valuation of its short-term investments. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. During the three months ended March 29, 2013, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition.

The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value as of March 29, 2013 and December 31, 2012, based on the three-tier fair value hierarchy (in thousands):

	Level 1		Level 2		Level 3		Total
As of March 29, 2013
Cash equivalents
Money market funds	$	62,370	$	—	$	—	$	62,370
U.S. federal government bonds with maturity less than 90 days		2,002		—		—		2,002
Short-term investments
Certificates of deposit		—		1,605		—		1,605
State, municipal and local government agencies bonds		—		59,191		—		59,191
Corporate bonds		—		31,047		—		31,047
Commercial paper		—		9,944		—		9,944
U.S. federal government bonds		8,003		—		—		8,003
Prepaids and other current assets
Foreign exchange forward contracts		—		735		—		735
Total assets measured and recorded at fair value	$	72,375	$	102,522	$	—	$	174,897
Accrued liabilities
Foreign exchange forward contracts	$	—	$	63	$	—	$	63
Total liabilities measured and recorded at fair value	$	—	$	63	$	—	$	63
	Level 1		Level 2		Level 3		Total
As of December 31, 2012
Cash equivalents
Money market funds	$	54,923	$	—	$	—	$	54,923
Corporate bonds with maturity less than 90 days		—		3,614		—		3,614
U.S. federal government bonds with maturity less than 90 days		3,005		—		—		3,005
Short-term investments
Certificates of deposit		—		1,603		—		1,603
State, municipal and local government agencies bonds		—		59,050		—		59,050
Corporate bonds		—		31,562		—		31,562
Commercial paper		—		10,288		—		10,288
U.S. federal government bonds		2,003		—		—		2,003
Prepaids and other current assets
Foreign exchange forward contracts		—		344		—		344
Total assets measured and recorded at fair value	$	59,931	$	106,461	$	—	$	166,392
Accrued liabilities
Foreign exchange forward contracts	$	—	$	143	$	—	$	143
Total liabilities measured and recorded at fair value	$	—	$	143	$	—	$	143