Fair Value Measurements

9 Months Ended

Jan. 01, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 3. Fair Value Measurements

Fair value is the exchange price that would be received for 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. A description of the three levels of inputs is as follows:

• Level 1 – Quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, 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.

• 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.

Assets measured at fair value on a recurring basis as of January 1, 2012 and April 3, 2011 are as follows:

	Fair Value Measurements Using
	Level 1		Level 2		Level 3		Total
January 1, 2012	(In thousands)
Cash and cash equivalents	$	70,189	$	4,009	$	—	$	74,198
Marketable securities:
U.S. government and agency securities		121,718		—		—		121,718
Corporate debt obligations		—		144,869		—		144,869
Asset and mortgage-backed securities		—		39,040		—		39,040
Municipal bonds		—		15,808		—		15,808
Certificates of deposit		192		—		—		192
		121,910		199,717		—		321,627
	$	192,099	$	203,726	$	—	$	395,825
April 3, 2011
Cash and cash equivalents	$	146,281	$	1,499	$	—	$	147,780
Marketable securities:
U.S. government and agency securities		55,753		—		—		55,753
Corporate debt obligations		—		138,436		—		138,436
Asset and mortgage-backed securities		—		22,490		—		22,490
Municipal bonds		—		17,941		—		17,941
Non-U.S. government and agency securities		—		1,676		—		1,676
		55,753		180,543		—		236,296
	$	202,034	$	182,042	$	—	$	384,076

The Company’s investments classified within Level 2 were primarily valued based on valuations obtained from a third-party pricing service. To estimate fair value, the pricing service utilizes industry standard valuation models, including both income and market-based approaches for which all significant inputs are observable either directly or indirectly. These inputs include reported trades and broker/dealer quotes of the same or similar securities, issuer credit spreads, benchmark securities and other observable inputs.