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Fair Value Of Financial Instruments
 9 Months Ended
Dec. 31, 2011
Fair Value Of Financial Instruments [Abstract]  
Fair Value Of Financial Instruments

3. Fair Value of Financial Instruments

     The Company's investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with ASC Topic 320 - "Investments – Debt and Equity Securities." Marketable securities are categorized on the consolidated condensed balance sheet as restricted investments and marketable securities, as appropriate.

     The following table is a summary of cash and marketable securities at December 31, 2011 (in thousands):

                  Estimated Fair
        Gross   Gross     Value (Net
        Unrealized   Unrealized     Carrying
    Amortized Cost   Gains   Losses     Amount)
 
Cash and Cash Equivalents $ 11,666 $ - $ -   $ 11,666
Money-Market Funds   27,220   -   -     27,220
Corporate Debt Securities   59,694   10   (64 )   59,640
U.S. Treasury Securities   24,143   4   -     24,147
Agency Discount Notes   17,831   8   (1 )   17,838
Commercial Paper   19,840   2   (11 )   19,831
Total Securities $ 160,394 $ 24 $ (76 ) $ 160,342

 

     The Company's specifically identified gross unrealized losses of $76 thousand relates to 29 different securities with total amortized costs of approximately $62.3 million at December 31, 2011. The securities with gross unrealized losses have been in a continuous unrealized loss position for less than 12 months as of December 31, 2011.

The following table is a summary of cash and marketable securities at March 26, 2011 (in thousands):

                  Estimated Fair
        Gross   Gross     Value (Net
        Unrealized   Unrealized     Carrying
    Amortized Cost   Gains   Losses     Amount)
 
Cash and Cash Equivalents $ 9,626 $ - $ -   $ 9,626
Money-Market Funds   17,700   -   -     17,700
Corporate Debt Securities   64,227   23   (38 )   64,212
U.S. Treasury Securities   45,768   13   -     45,781
Agency Discount Notes   16,588   5   (2 )   16,591
Commercial Paper   61,128   24   (7 )   61,145
Total Securities $ 215,037 $ 65 $ (47 ) $ 215,055

 

     The Company's specifically identified gross unrealized losses of $47 thousand relates to 28 different securities with total amortized costs of approximately $61.8 million at March 26, 2011. The securities with


gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 26, 2011.

     The Company has determined that the only assets and liabilities in the Company's financial statements that are required to be measured at fair value on a recurring basis are the Company's cash and investment portfolio assets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

• 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.

     The Company's investment portfolio assets consist of U.S. Treasury securities, obligations of U.S. government-sponsored enterprises, corporate debt, commercial paper, and money-market funds, and are reflected on our consolidated condensed balance sheet under the headings cash and cash equivalents, restricted investments, marketable securities, and long-term marketable securities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. The Company began classifying certain of its available-for-sale marketable securities as Level 2 in the second quarter of fiscal year 2012. Prior to the quarterly period ending September 24, 2011, the Company classified all investment portfolio assets as Level 1 inputs. These changes in the disclosed classification had no effect on the reported fair values of these investments. Prior period amounts have been reclassified to be properly presented. The Company has no Level 3 assets. Except as noted above, there were no transfers between Level 1, Level 2, or Level 3 measurements for the three or nine month period ending December 31, 2011.

     The fair value of our financial assets, which are all classified as available-for-sale securities, at December 31, 2011, was determined using the following inputs (in thousands):

    Quoted Prices            
    in Active   Significant        
    Markets for   Other   Significant    
    Identical   Observable   Unobservable    
    Assets Level   Inputs   Inputs    
Description   1   Level 2   Level 3   Total
 
Money-Market Funds $ 27,220 $ - $ - $ 27,220
Corporate Debt Securities   -   59,640   -   59,640
U.S. Treasury Securities   24,147   -   -   24,147
Agency Discount Notes   -   17,838   -   17,838
Commercial Paper   -   19,831   -   19,831
  $ 51,367 $ 97,309 $ - $ 148,676

 


     The fair value of our financial assets, which are all classified as available-for-sale securities, at March 26, 2011, was determined using the following inputs (in thousands):

    Quoted Prices            
    in Active   Significant        
    Markets for   Other   Significant    
    Identical   Observable   Unobservable    
    Assets Level   Inputs   Inputs    
Description   1   Level 2   Level 3   Total
 
Money-market funds $ 17,700 $ - $ - $ 17,700
Corporate debt securities   -   64,212   -   64,212
U.S. Treasury securities   45,781   -   -   45,781
Agency discount notes   -   16,591   -   16,591
Commercial paper   -   61,145   -   61,145
  $ 63,481 $ 141,948 $ - $ 205,429