Note 5 - Fair Value
|9 Months Ended|
Jan. 01, 2017
|Notes to Financial Statements|
|Fair Value Disclosures [Text Block]||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP describes a fair value hierarchy based on
threelevels of inputs, of which the
twoare considered observable and the last unobservable, that
maybe used to measure fair value as follows:
1– Quoted prices in active markets for identical assets or liabilities.
2– Inputs other than Level
1that 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.
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.
Our cash and investment instruments are classified within Level
2of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency.
There were no transfers between Level
Exar had no assets or liabilities utilizing Level
3inputs as of
Our investment assets, measured at fair value on a recurring basis, consisted of the following as of the dates indicated below (in thousands):
2016,we donated the
93,000common shares of CounterPath Corporation (“CounterPath”) received in the
firstquarter of fiscal year
2015resulting from the dissolution of Skypoint Telecom Fund II (US), LP, in which we were a limited partner, and wrote off the related
Our cash and cash equivalents as of the dates indicated below were as follows (in thousands):
Our marketable securities include U.S. government and agency securities, state and local government securities, corporate bonds and securities, and certificates of deposit. We classify investments as available-for-sale at the time of purchase and re-evaluate such designation as of each balance sheet date. We amortize premiums and accrete discounts to interest income over the life of the investment. Our available-for-sale securities, which we intend to sell as necessary to meet our liquidity requirements, are classified as cash equivalents if the maturity date is
90days or less from the date of purchase and as short-term marketable securities if the maturity date is greater than
90days from the date of purchase.
All marketable securities are reported at fair value based on the estimated or quoted market prices as of each balance sheet date, with unrealized gains or losses, net of tax effect, recorded in the condensed consolidated statements of other comprehensive income except those unrealized losses that are deemed to be other than temporary which are reflected in the impairment charges on investments line item on the condensed consolidated statements of operations.
Realized gains (losses) on the sale of marketable securities are determined by the specific identification method and are reflected in interest income and other, net within the condensed consolidated statements of operations. During the
2015,there were no net realized gains (losses) on the sale of marketable securities.
The following table summarizes our investments in marketable securities as of
We periodically review our investments in unrealized loss positions for other-than-temporary impairments. This evaluation includes, but is not limited to, significant quantitative and qualitative assessments and estimates regarding credit ratings, collateralized support, the length of time and significance of a security’s loss position, our intent not to sell the security, and whether it is more likely than not that we will not have to sell the security before recovery of its cost basis. For the
2017,no investments were identified with other-than-temporary declines in value.
The amortized cost and estimated fair value of cash equivalents and marketable securities classified as available-for-sale by expected maturity as of
The following table summarizes the gross unrealized losses and fair values of our investments in an unrealized loss position as of
2017,aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef