Fair Value of Financial Instruments

6 Months Ended

Sep. 28, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 4. Fair Value of Financial Instruments

The Company’s financial instruments consist principally of cash and cash equivalents, marketable securities, accounts receivable and accounts payable. The carrying value of accounts receivable and accounts payable approximates fair value.

A summary of the assets measured at fair value on a recurring basis as of September 28, 2014 and March 30, 2014 are as follows:

	Fair Value Measurements Using
	Level 1		Level 2		Total
	(In thousands)
September 28, 2014
Cash and cash equivalents	$	86,930	$	—	$	86,930
Marketable securities:
U.S. government and agency securities		49,836		—		49,836
Corporate debt obligations		—		72,926		72,926
Mortgage-backed securities		—		33,570		33,570
Municipal bonds		—		20,331		20,331
Other debt securities		—		13,176		13,176
		49,836		140,003		189,839
	$	136,766	$	140,003	$	276,769
March 30, 2014
Cash and cash equivalents	$	91,258	$	—	$	91,258
Marketable securities:
U.S. government and agency securities		49,198		—		49,198
Corporate debt obligations		—		74,514		74,514
Mortgage-backed securities		—		32,782		32,782
Municipal bonds		—		25,113		25,113
Other debt securities		—		5,176		5,176
		49,198		137,585		186,783
	$	140,456	$	137,585	$	278,041

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. The Company obtained documentation from the pricing service as to the methodology and summary of inputs used for the various types of securities. The pricing service maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. These observable inputs include reported trades and broker/dealer quotes of the same or similar securities, issuer credit spreads, benchmark securities and other observable inputs. The Company compares valuation information from the pricing service with other pricing sources to validate the reasonableness of the valuations.