Fair Value Measurements

12 Months Ended

Jul. 03, 2021

Note 8. Fair Value Measurements

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Assets and liabilities are classified under a fair value hierarchy in three levels of inputs as described in “Note 1. Basis of Presentation.” This includes: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs; and, Level 3—Unobservable inputs for the asset or liability.

The Company’s assets and liabilities measured at fair value for the periods presented are as follows (in millions):



	July 3, 2021								June 27, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Debt available-for-sale securities:
Asset-backed securities	$	0.4	$	—	$	0.4	$	—	$	0.5	$	—	$	0.5	$	—
Total debt available-for-sale securities	0.4		—		0.4		—		0.5		—		0.5		—
Money market funds	408.9		408.9		—		—		334.6		334.6		—		—
Trading securities	1.6		1.6		—		—		1.4		1.4		—		—
Foreign currency forward contracts (1)	2.6		—		2.6		—		2.2		—		2.2		—
Total assets (2)	$	413.5	$	410.5	$	3.0	$	—	$	338.7	$	336.0	$	2.7	$	—

Liability:
Foreign currency forward contracts (3)	$	1.4	$	—	$	1.4	$	—	$	1.5	$	—	$	1.5	$	—
Contingent consideration (4)	4.0		—		—		4.0		9.9		—		—		9.9
Total liabilities	$	5.4	$	—	$	1.4	$	4.0	$	11.4	$	—	$	1.5	$	9.9

(1)$2.6 million and $2.2 million in prepayments and other current assets on the Company’s Consolidated Balance Sheets as of July 3, 2021 and June 27, 2020, respectively.

(2)Includes as of July 3, 2021, $401.0 million in cash and cash equivalents, $1.6 million in short-term investments, $2.7 million in restricted cash, $2.6 million in prepayments and other current assets, and $5.6 million in other non-current assets on the Company’s Consolidated Balance Sheets. Includes as of June 27, 2020, $327.2 million in cash and cash equivalents, $1.4 million in short-term investments, $3.4 million in restricted cash, $2.2 million in prepayments and other current assets and $4.5 million in other non-current assets on the Company’s Consolidated Balance Sheets.

(3)Includes $1.4 million and $1.5 million in other current liabilities on the Company’s Consolidated Balance Sheets as of July 3, 2021 and June 27, 2020, respectively.

(4)Includes $0.0 million and $9.4 million in other non-current liabilities and $4.0 million and $0.5 million in other current liabilities as of July 3, 2021 and June 27, 2020, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial 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 entity 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 risks 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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