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Fair Value Measurements
 9 Months Ended
Mar. 31, 2012
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 fair values of assets/(liabilities) of the Company's derivatives that are required to be measured on a recurring basis as of March 31, 2012 and July 2, 2011 (in thousands):

 

     March 31, 2012  
     Level 1      Level 2     Level 3      Total
Fair Value		  

Financial Assets:

           

Foreign currency forward contracts

    $ —         $ 813      $ —         $ 813   

Financial Liabilities:

           

Foreign currency forward contracts

    $ —         $ (884 )    $ —         $ (884 ) 
     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.

The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at March 31, 2012 and July 2, 2011, reasonably approximate their fair value. The Company's long-term debt primarily consists of a revolving line of credit. Borrowings under this revolving line of credit bear interest at the higher of Wells Fargo Bank prime rate, daily one month London Interbank Offered Rate (LIBOR) plus 1.5% to 2.5%, or the Federal Funds rate plus 1.5%. Each of these rates is a variable floating rate dependent upon current market conditions and the Company's current credit risk. As a result of the determinable market rate for our revolving credit debt it is classified within Level 2 of the fair value hierarchy. The discounted cash flow of the revolving line of credit is estimated to be $16.2 million and $6.0 million, respectively, as of March 31, 2012 and July 2, 2011, which carrying value approximates the fair value.