Fair Value of Financial Instruments

6 Months Ended

Nov. 01, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

9.  Fair Value of Financial Instruments

ASC Topic 820 establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and the company’s assumptions (unobservable inputs). Determining where an asset or liability falls within that hierarchy depends on the lowest level input that is significant to the fair value measurement as a whole. An adjustment to the pricing method used within either level 1 or level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The hierarchy consists of three broad levels as follows:

Level 1 – Quoted market prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than level 1 inputs that are either directly or indirectly observable, and

Level 3 – Unobservable inputs developed using the company’s estimates and assumptions, which reflect those that market participants would use.

Recurring Basis

The following table presents information about assets and liabilities measured at fair value on a recurring basis:

	Fair value measurements at November 1, 2015 using:
	Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
(amounts in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Premier Money Market Fund	$	2,703		N/A		N/A	$	2,703
Intermediate Term Bond Fund		2,144		N/A		N/A		2,144
Low Duration Bond Fund		2,098		N/A		N/A		2,098
Limited Term Bond Fund		1,094		N/A		N/A		1,094
Strategic Income Fund		984		N/A		N/A		984
Large Blend Fund		279		N/A		N/A		279
Growth Allocation Fund		125		N/A		N/A		125
Mid Cap Value Fund		94		N/A		N/A		94
Other		78		N/A		N/A		78

	Fair value measurements at November 2, 2014 using:
	Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
(amounts in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Limited Term Bond Fund	$	2,576		N/A		N/A	$	2,576
Low Duration Bond Fund		2,081		N/A		N/A		2,081
Premier Money Market Fund		1,818		N/A		N/A		1,818
Intermediate Term Bond Fund		1,661		N/A		N/A		1,661
Other		93		N/A		N/A		93

	Fair value measurements at May 3, 2015 using:
	Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
(amounts in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Limited Term Bond Fund	$	3,107		N/A		N/A	$	3,107
Premier Money Market Fund		2,285		N/A		N/A		2,285
Intermediate Term Bond Fund		2,181		N/A		N/A		2,181
Low Duration Bond Fund		2,096		N/A		N/A		2,096
Strategic Income Fund		1,008		N/A		N/A		1,008
Growth Allocation Fund		85		N/A		N/A		85
Other		45		N/A		N/A		45

The determination of where an asset or liability falls in the hierarchy requires significant judgment. We evaluate our hierarchy disclosures each quarter based on various factors and it is possible that an asset or liability may be classified differently from quarter to quarter. However, we expect that changes in classifications between different levels will be rare.

Our short-term investments include short-term bond funds and deposit accounts that have a maturity of more than three months, are classified as available-for-sale, and their unrealized gains or losses are included in other comprehensive income (loss). Our short-term bond funds were recorded at their fair value of $6.3 million, $6.3 million and $10.0 million at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. Our short-term bond funds had an accumulated unrealized loss totaling $171,000, $88,000, and $95,000 at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. At November 1, 2015, November 2, 2014, and May 3, 2015, the fair value of our short-term bond funds approximated its cost basis.

Effective, January 1, 2014, we established a Rabbi Trust to set aside funds for participants of our deferred compensation plan (the “Plan”) and enable the participants to credit their contributions to various investment options of the Plan. The investments associated with the Rabbi Trust consist of a money market fund and various mutual funds that are classified as available for sale. Our long-term investments are recorded at its fair value of $3.3 million, $1.9 million, and $2.4 million at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. Our long-term investments had an accumulated unrealized gain of $14,000 at November 1, 2015. At November 2, 2014 and May 3, 2015, our accumulated gains or losses regarding our long-term investments were immaterial. The fair value of our long-term investments approximates its cost basis.

The carrying amount of cash and cash equivalents, accounts receivable, other current assets, accounts payable, and accrued expenses approximates fair value because of the short maturity of these financial instruments.