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Fair Value Measurements
 6 Months Ended
Dec. 31, 2011
Fair Value Measurements [Abstract]  
Fair Value Measurements

8. Fair Value Measurements

The Company has adopted ASC 820, Fair Value Measurements, which defines fair value, establishes a framework for assets and liabilities being measured and reported at fair value and expands disclosures about fair value measurements. There are three levels of fair value hierarchy inputs used to value assets and liabilities which include: Level 1 – inputs are quoted market prices for identical assets or liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – inputs are unobservable inputs for the asset or liability.

The following table summarizes the Company's financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2011 and July 2, 2011 (in thousands):

 

     December 31, 2011  
     Level 1      Level 2     Level 3      Total
Fair Value		  

Financial Liabilities:

          

Foreign currency forward contracts

    $ —         $ (3,556 )   $ —         $  (3,556)   

 

     July 2, 2011  
     Level 1      Level 2     Level 3      Total
Fair Value		  

Financial Assets:

          

Foreign currency forward contracts

    $ —         $ 2,723      $ —         $ 2,723   

Financial Liabilities:

          

Foreign currency forward contracts

    $ —         $ (82 )    $ —         $ (82 ) 

The Company currently has forward contracts to hedge known future cash outflows for expenses denominated in the Mexican peso. These contracts are measured on a recurring basis based on the foreign currency spot rates and forward rates quoted by banks or foreign currency dealers. These contracts are marked to market using level 2 input criteria every period with the unrealized gain or loss, net of tax, reported as a component of shareholders' equity in accumulated other comprehensive income, as they qualify for hedge accounting.