Fair Value Measurements

9 Months Ended

Dec. 28, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

The Company records and discloses certain financial and non-financial assets and liabilities at their fair value. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. A liability's fair value is defined as the estimate amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor.

Assets and liabilities recorded at fair value are measured using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

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 or 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 December 28, 2012 and March 30, 2012, 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 on a recurring basis as of December 28, 2012 and March 30, 2012, by level within the fair value hierarchy:

(in thousands)
December 28, 2012			Level 1			Level 3			Total
Assets:
	Conversion option on VIE
		convertible note (a)	$	-	$	583	$	583
Liabilities:
	Deferred compensation (b)		$	103,493	$	-	$	103,493
	Contingent consideration (c)			-		415		415
		Total liabilities	$	103,493	$	415	$	103,908
March 30, 2012			Level 1			Level 3			Total
Assets:
	Conversion option on VIE
		convertible note (a)	$	-	$	701	$	701
Liabilities:
	Deferred compensation (b)		$	94,394	$	-	$	94,394
	Contingent consideration (c)			-		493		493
		Total liabilities	$	94,394	$	493	$	94,887

• Represents the Company's conversion option to acquire 73% of the outstanding common stock in the Company's consolidated variable interest entity (“VIE”), which is located in Assets held for sale on the Company's Unaudited Condensed Consolidated Balance Sheets. See Footnote 4, 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. Significant increases (decreases) in any of those inputs would result in a significantly lower (higher) fair value measurement. The unobservable inputs are not considered to be interrelated. 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 Unaudited Condensed 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. Significant increases (decreases) to values of the unobservable inputs would result in a significantly lower (higher) fair value measurement. The unobservable inputs are not considered to be interrelated. The liabilities are included in Liabilities held for sale on the Company's Unaudited Condensed 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 nine months ended December 28, 2012:

(in thousands)		Level 3 Instruments
Assets:
Balance as of March 30, 2012		$	701
	Fair value adjustment included in earnings		(118)
Balance as of December 28, 2012		$	583

Liabilities:
Balance as of March 30, 2012		$	493
	Settlement adjustment		(133)
	Fair value adjustment included in earnings		55
Balance as of December 28, 2012		$	415

The carrying amounts of the Company's current financial instruments, including cash and cash equivalents, short-term trade receivables, and accounts payable, approximate fair value due to the short-term nature of these assets and liabilities.