Fair Value Measures

6 Months Ended

Nov. 26, 2011

Fair Value Measures [Abstract]

Fair Value Measures

7. Fair Value Measures

The Company is required to categorize both financial and nonfinancial assets and liabilities based on the following fair value hierarchy. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable, and willing parties able to engage in the transaction. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor.

·Level 1 - Quoted prices in active markets for identical assets or liabilities

·Level 2 - Quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability

·Level 3 - Unobservable inputs for the asset or liability that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

The disclosure of fair value of certain financial assets and liabilities that are recorded at cost are as follows:

Cash and cash equivalents: The carrying amount approximates fair value due to the short maturity of these instruments.

Long-term debt: The carrying value of the Company's long-term debt is at its stated value.  We have not elected to carry our long-term debt at fair value.  Except for the "Note payable-Texas Egg Products, LLC," fair values for debt are based on quoted market prices or published forward interest rate curves.    We believe that cost approximates fair value for the "Note payable-Texas Egg Products, LLC."  Estimated fair values are management's estimates; however, when there is no readily available market data, the estimated fair values may not necessarily represent the amounts that could be realized in a current transaction, and the fair values could change significantly.  There is no readily available market data for the "Note payable-Texas Egg Products, LLC." The fair value and carrying value of the Company's borrowings under its credit facilities and long-term debt were as follows:

	November 26, 2011				May 28, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
5.99  – 6.80% Notes payable	$	67,439	$	70,525	$	72,874	$	74,280
Series A Senior Secured Notes at 5.45%		13,682		13,892		14,735		14,634
Note payable-Texas Egg Products, LLC (payable to non-affiliate equity members)*		552		552		552		552
	$	81,673	$	84,969	$	88,161	$	89,466

* Cost approximates fair value for the Note payable – Texas Egg Products, LLC

Assets Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis consisted of the following types of instruments as of November 26, 2011:

	Fair Value Measurements at Reporting Date Using
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Instruments		Inputs		Inputs		Total
	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale
Municipal bonds	$	—	$	59,511	$	—	$	59,511
U.S. government obligations		—		17,216		—		17,216
Corporate bonds		—		13,132		—		13,132
Certificates of deposit		—		12,194		—		12,194
Government agency bonds		—		7,484		—		7,484
Total assets measured at fair value	$	—	$	109,537	$	—	$	109,537

Assets measured at fair value on a recurring basis consisted of the following types of instruments as of May 28, 2011:

	Fair Value Measurements at Reporting Date Using
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Instruments		Inputs		Inputs		Total
	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale
Municipal bonds	$	—	$	70,528	$	—	$	70,528
U.S. government obligations		—		15,207		—		15,207
Corporate bonds		—		13,387		—		13,387
Certificates of deposit		—		10,224		—		10,224
Government agency bonds		—		8,904		—		8,904
U.S. treasury bills		—		500		—		500
Total assets measured at fair value	$	—	$	118,750	$	—	$	118,750

Level 2: We classified our current investment securities – available-for-sale as level 2.   These securities consist of municipal bonds, US government obligations, corporate bonds, certificates of deposit, and government agency bonds which contain the aforementioned securities with maturities of three months or longer when purchased. We classified these securities as current because amounts invested are available for current operations. Observable inputs for these securities are yields, credit risks, default rates, and volatility.