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Fair Value Measurements
 3 Months Ended
Jul. 24, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Accounting standards require that we put financial assets and liabilities into one of three categories based on the inputs we use to value them:

•Level 1 — Financial assets and liabilities, the values of which are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have the ability to access.

•Level 2 — Financial assets and liabilities, the values of which are based on quoted prices in markets that are not active or on model inputs that are observable for substantially the full term of the asset or liability.

•Level 3 — Financial assets and liabilities, the values of which are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. 

Accounting standards require that in making fair value measurements, we use observable market data when available. When inputs used to measure fair value fall within different levels of the hierarchy, we categorize the fair value measurement as being in the lowest level that is significant to the measurement. We recognize transfers between levels of the fair value hierarchy at the end of the reporting period in which they occur.

In addition to assets and liabilities that we record at fair value on a recurring basis, we are required to record assets and liabilities at fair value on a non-recurring basis. We measure non-financial assets such as other intangible assets, goodwill, and other long-lived assets at fair value when there is an indicator of impairment, and we record them at fair value only when we recognize an impairment loss.
The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at July 24, 2021 and April 24, 2021. There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented.

At July 24, 2021
Fair Value Measurements
(Unaudited, amounts in thousands)Level 1Level 2Level 3NAV(1)Total
Assets
Marketable securities$250 $37,784 $— $7,623 $45,657 
Held-to-maturity investments2,414 — — — 2,414 
Cost basis investments— — 7,579 — 7,579 
Total assets$2,664 $37,784 $7,579 $7,623 $55,650 
Liabilities
Contingent consideration liability$— $— $14,100 $— $14,100 

At April 24, 2021
Fair Value Measurements
(Unaudited, amounts in thousands)Level 1Level 2Level 3NAV(1)Total
Assets
Marketable securities$119 $37,572 $— $7,602 $45,293 
Held-to-maturity investments2,532 — — — 2,532 
Cost basis investment— — 7,579 — 7,579 
Total assets$2,651 $37,572 $7,579 $7,602 $55,404 
Liabilities
Contingent consideration liability$— $— $14,100 $— $14,100 
(1)Certain marketable securities investments are measured at fair value using net asset value per share under the practical expedient methodology.

At July 24, 2021 and April 24, 2021, we held marketable securities intended to enhance returns on our cash and to fund future obligations of our non-qualified defined benefit retirement plan, as well as marketable securities to fund future obligations of our executive deferred compensation plan and our performance compensation retirement plan. We also held other fixed income and cost basis investments.

The fair value measurements for our Level 1 and Level 2 securities are based on quoted prices in active markets, as well as through broker quotes and independent valuation providers, multiplied by the number of shares owned exclusive of any transaction costs.

At July 24, 2021, our Level 3 assets included non-marketable preferred shares and warrants to purchase common shares of two privately held start-up companies. The fair value for our Level 3 investments is not readily determinable so we estimate the fair value as costs minus impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments with the same issuer. There were no changes to the fair value of our Level 3 assets during the quarter ended July 24, 2021.

Our Level 3 liability includes our contingent consideration liability resulting from the Joybird acquisition. The contingent consideration fair value is based on revenue and earnings of the Joybird business in fiscal 2021, and future revenue and earnings of the Joybird business in fiscal 2023. The fair value is determined using a variation of the income approach, known as the real options method, whereby revenue and earnings were simulated over the earnout periods in a risk-neutral framework using Geometric Brownian Motion. For each simulation path, the potential earnout payments were calculated based on management’s probability estimates for achievement of the revenue and earnings milestones and then were discounted to the valuation date using a discount rate of 1.0% for the fiscal 2021 milestone and 1.6% for the fiscal 2023 milestone. There were no changes to the fair value of our Level 3 liabilities during the quarter ended July 24, 2021. Based on the achievement of fiscal 2021 performance metrics, we expect to pay $10.0 million of the contingent consideration during the second quarter of fiscal 2022.