Fair Value Measurements

12 Months Ended

Aug. 03, 2018

Fair Value Measurements [Abstract]

Fair Value Measurements

3. Fair Value Measurements

Fair value for certain of the Company’s assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  In determining fair value, a three level hierarchy for inputs is used.  These levels are:

· Quoted Prices in Active Markets for Identical Assets (“Level 1”) – quoted prices (unadjusted) for an identical asset or liability in an active market.

· Significant Other Observable Inputs (“Level 2”) – quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability.

· Significant Unobservable Inputs (“Level 3”) – unobservable and significant to the fair value measurement of the asset or liability.

The Company’s assets and liabilities measured at fair value on a recurring basis at August 3, 2018 were as follows:

	Level 1		Level 2		Level 3		Total Fair Value
Cash equivalents*	$	38,446	$	--	$	--	$	38,446
Interest rate swap asset (see Note 6)		--		6,255		--		6,255
Total	$	38,446	$	6,255	$	--	$	44,701
Deferred compensation plan assets** measured at net asset value								32,669
Total assets at fair value							$	77,370
Interest rate swap liability (see Note 6)	$	--	$	--	$	--	$	--
Total liabilities at fair value	$	--	$	--	$	--	$	--

The Company’s assets and liabilities measured at fair value on a recurring basis at July 28, 2017 were as follows:

	Level 1		Level 2		Level 3		Total Fair Value
Cash equivalents*	$	82,524	$	--	$	--	$	82,524
Interest rate swap asset (see Note 6)		--		32		--		32
Deferred compensation plan assets**		31,196		--		--		31,196
Total assets at fair value	$	113,720	$	32	$	--	$	113,752
Interest rate swap liability (see Note 6)	$	--	$	6,880	$	--	$	6,880
Total liabilities at fair value	$	--	$	6,880	$	--	$	6,880

*Consists of money market fund investments.

**Represents plan assets invested in mutual funds established under a Rabbi Trust for the Company’s non-qualified savings plan and is included in the Consolidated Balance Sheets as other assets (see Note 12).

The Company’s money market fund investments are measured at fair value using quoted market prices.  The fair values of the Company’s interest rate swap assets and liabilities are determined based on the present value of expected future cash flows.  Since the Company’s interest rate swap values are based on the LIBOR forward curve, which is observable at commonly quoted intervals for the full terms of the swaps, it is considered a Level 2 input.  Nonperformance risk is reflected in determining the fair value of the interest rate swaps by using the Company’s credit spread less the risk-free interest rate, both of which are observable at commonly quoted intervals for the terms of the swaps.  Thus, the adjustment for nonperformance risk is also considered a Level 2 input.  The Company’s deferred compensation plan assets are measured based on net asset value per share as a practical expedient to estimate fair value.

The fair values of accounts receivable and accounts payable at August 3, 2018 and July 28, 2017, approximate their carrying amounts because of their short duration.  The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amounts at August 3, 2018 and July 28, 2017.