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Fair Value Measurements

12 Months Ended

Apr. 01, 2011

Accounting standards on fair value measurement provides a framework for measuring fair value, expands disclosures about fair value measurements, and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows:

Level 1: Inputs using unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access.

Level 2: Inputs other than quoted prices in markets that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs that are both significant to the fair value measurement and unobservable.

As of April 1, 2011, the fair value of the Company's financial assets and/or liabilities are measured using Level 1 or Level 3 inputs. The following table presents the Company's assets and liabilities which are measured at fair value as of fiscal years ended April 1, 2011 and April 2, 2010, by level within the fair value hierarchy:


(in thousands)
April 1, 2011			Level 1		Level 2		Level 3		Total
Assets:
	Conversion option on VIE convertible note^(a)		$	-	$	-	$	845	$	845

Liabilities:
	Deferred compensation^(b)		$	84,165	$	-	$	-	$	84,165
	Contingent consideration^(c)			-		-		10,155		10,155
		Total liabilities	$	84,165	$	-	$	10,155	$	94,320

April 2, 2010			Level 1		Level 2		Level 3		Total
Liabilities:
	Deferred compensation^(b)		$	69,263	$	-	$	-	$	69,263
	Contingent consideration^(c)			-		-		1,715		1,715
		Total liabilities	$	69,263	$	-	$	1,715	$	70,978

Represents the Company's conversion option to acquire 73% of the outstanding common stock in the Company's consolidated VIE, which is located in Other assets on the Company's Consolidated Balance Sheets. See Footnote 5, Variable Interest Entity, for further information. The conversion option was calculated using an internal model that utilizes as its basis, unobservable inputs, including estimated interest rates based upon the estimated market interest rate which the VIE would have paid on a high-yield note in the open market. The remaining investment in Pathway has been eliminated in consolidation.
Represents the Company's obligation to pay benefits under its non-qualified deferred compensation plans, which is included in Other noncurrent liabilities on the Company's Consolidated Balance Sheets. The obligation to pay benefits is based on participants' allocation percentages to plan investments. The investments are measured using quoted market prices.
Represents the estimated fair value of the additional variable cash consideration payable in connection with the Company's acquisitions that are contingent upon the achievement of certain performance milestones. The Company estimated the fair value using expected future cash flows over the period in which the obligations are expected to be settled, and applied a discount rate that appropriately captures a market participant's view of the risk associated with the obligation. The liabilities are included in Other current liabilities and Other noncurrent liabilities on the Company's Consolidated Balance Sheets, depending on the period of expected payout.

The following table summarizes the change in the fair value for Level 3 instruments for the fiscal year 2011.

		Level 3 Instruments
Assets:
Balance, April 2, 2010		$	-
	Additions		947
	Fair value adjustment included in earnings		(102)
Balance, April 1, 2011		$	845

Liabilities:
Balance, April 2, 2010		$	1,715
	Additions		9,150
	Settlement of obligation		(875)
	Fair value adjustment included in earnings		165
Balance, April 1, 2011		$	10,155

The Company has applied the requirement of ASC 820, Fair Value Measurement and Disclosure with respect to nonfinancial assets and liabilities not measured at fair value on a recurring basis with no material effect. The standard requires fair value disclosure of such nonfinancial assets only when there is an indication of potential impairment. See Footnote 2, Summary of Significant Accounting Policies, for disclosure of fair value of financial instruments.

The carrying amounts of the Company's current financial instruments, including cash and cash equivalents, short-term trade receivables, and accounts payable, approximate their fair values due to the short-term nature of these assets and liabilities. The gross carrying value of the Company's 2008 Notes as of April 1, 2011 and April 2, 2010 was $230,000 and the fair value, which is estimated using a third party valuation model, was approximately $323,800 and $285,800.

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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