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Form 10-K
3. Fair Value Measurements
The following table summarizes, by major security type, our assets that are measured at fair value on
a recurring basis and are categorized using the fair value hierarchy:
Total
Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
June 30, 2010
Cash and cash equivalents . . . . . . . . . . $ 162,727 $ 162,727 $ — $ —
Corporate debt securities . . . . . . . . . . . 6,745 6,745 — —
U.S government and agency
securities. . . . . . . . . . . . . . . . . . . . . . 1,900 1,900 — —
Certificates of deposit . . . . . . . . . . . . . . 959 959 — —
Long-term investments (1) . . . . . . . . . . 660 — — 660
Total assets recorded at fair value. . . . . $ 172,991 $ 172,331 $ — $ 660
Total
Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
June 30, 2009
Cash and cash equivalents . . . . . . . . . . $ 133,988 $ 133,988 $ — $ —
Long-term investments (1) . . . . . . . . . . 760 — — 760
Total assets recorded at fair value. . . . . $ 134,748 $ 133,988 $ — $ 760
(1) Long-term investments consist of an auction rate security.
The Company has the intent and the ability to hold the Level 3 asset until the anticipated
recovery period which it believes will be more than twelve months. The following table presents a roll
forward of assets measured at fair value using significant unobservable inputs (Level 3) at June 30,
2010 and 2009:
Balance at June 30, 2008. . . . . . . . . . . . . . . . . . $ 760
Maturities or redemptions . . . . . . . . . . . . . . . . . . —
Balance at June 30, 2009. . . . . . . . . . . . . . . . . . $ 760
Maturities or redemptions . . . . . . . . . . . . . . . . . . (100)
Balance at June 30, 2010. . . . . . . . . . . . . . . . . . $ 660
Cash Flow Hedge of Currency Exchange Risk
The Company is exposed to fluctuations in various currencies against its reporting currency,
the U.S. dollar. During the fiscal year 2010, the Company’s Canadian subsidiary entered into a series
of nine currency forward contracts with the objective of hedging currency exchange risk on forecasted
monthly payments for the purchase of a long-lived asset denominated in a currency other than its
functional currency and were designated and qualify as cash flow hedges at inception.
77