Fair Value of Financial Instruments

The following table presents assets and liabilities measured at fair value (in thousands):



	November 1, 2015		November 2, 2014		Fair Value Hierarchy
Short-term investments	$	4,799	$	5,543	Level 1
Note receivable	8,756		—		Level 2
Total financial assets	$	13,555	$	5,543
Deferred compensation plan liabilities	$	4,683	$	5,439	Level 1
Total financial liabilities	$	4,683	$	5,439

Short-term investments also include available for sale securities of $0.1 million at November 1, 2015 and November 2, 2014.

The Company received proceeds from the sale of the Computer Systems segment in the form of a note receivable of $10.0 million from NewNet. The note was valued at $8.4 million on the transaction date based on an imputed interest rate of 5.0% that reflected the market rate for corporate bond yields of a non-speculative, medium credit-quality investment. The resulting discount is amortized over four years. As of November 1, 2015, there were no adjustments required.

The fair value of the deferred compensation plan liabilities is based on the fair value of the investments corresponding to the employees’ investment selections, primarily in mutual funds, based on quoted prices in active markets for identical assets. The deferred compensation plan liabilities is recorded in Accrued Compensation in the Consolidated Balance Sheets.

The Company has a term loan with borrowings at a fixed interest rate, and our interest expense related to this borrowing is not affected by changes in interest rates in the near term. The fair value of the term loan was calculated by applying the appropriate fiscal year-end interest rates to our present streams of loan payments.

The following table presents the term loan measured at fair value (in thousands):



	November 1, 2015
	Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Long-Term Debt, including current portion	$	7,295	$	7,968	Level 2

	November 2, 2014
Long-Term Debt, including current portion	$	8,127	$	9,012	Level 2

There have been no changes in the methodology used to fair value the financial instruments as well as no transfers between levels during the fiscal years ended November 1, 2015 and November 2, 2014.