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Fair Value Measurements
 12 Months Ended
Apr. 28, 2012
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer the liability (an exit price) in an orderly transaction between market participants at the measurement date.  It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  The fair value hierarchy within ASC 820 distinguishes between three levels of inputs that may be utilized when measuring fair value as follows:

•
Level 1 - Quoted prices in active markets for identical assets or liabilities.
•
Level 2 - Observable inputs other than quoted prices included within level 1 for the assets or liability, either directly or indirectly (for example, quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated input.
•
Level 3 - Unobservable inputs supported by little or no market activity based on our own assumptions used to measure assets and liabilities.

The fair values for fixed-rate contracts receivable are estimated using discounted cash flow analysis based on interest rates currently being offered for contracts with similar terms to customers with similar credit quality. The carrying amounts reported on our consolidated balance sheets for contracts receivable approximate fair value and have been categorized as a Level 2 fair value measurement.  The carrying amounts reported for variable rate long-term marketing obligations approximate fair value.  Fair values for fixed-rate long-term marketing obligations are estimated using a discounted cash flow calculation that applies interest rates currently being offered for debt with similar terms and underlying collateral.  The total carrying value of long-term marketing obligations reported on our consolidated balance sheets approximates fair value and have been categorized as a Level 2 fair value measurement.

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at April 28, 2012 and April 30, 2011 according to the valuation techniques we used to determine their fair values. There have been no transfers of assets or liabilities between the fair value hierarchies presented.
 
Fair Value Measurements
 
Level 1
 
Level 2
 
Level 3
 
Total
Balance as of April 28, 2012:
 
 
 
 
 
 
 
Cash and cash equivalents
$
29,423

 
$
—

 
$
—

 
$
29,423

Restricted cash
1,169

 
—

 
—

 
1,169

Available for sale securities:
 

 
 

 
 

 
 
Certificates of deposit
—

 
7,657

 
—

 
7,657

U.S. Government securities
7,556

 
—

 
—

 
7,556

U.S. Government sponsored entities
—

 
4,505

 
—

 
4,505

Municipal Bonds
—

 
5,540

 
—

 
5,540

Derivatives - currency forward contracts
—

 
(95
)
 
—

 
(95
)
 
$
38,148

 
$
17,607

 
$
—

 
$
55,755

Balance as of April 30, 2011:
 

 
 

 
 

 
 

Cash and cash equivalents
$
54,308

 
$
—

 
$
—

 
$
54,308

Restricted cash
1,546

 
—

 
—

 
1,546

Available for sale securities:
 
 
 
 
 
 
 
Certificates of deposit
—

 
4,913

 
—

 
4,913

U.S. Government securities
1,999

 
—

 
—

 
1,999

U.S. Government sponsored entities
—

 
13,617

 
—

 
13,617

Municipal Bonds
—

 
2,414

 
—

 
2,414

Derivatives - currency forward contracts
—

 
(258
)
 
—

 
(258
)
 
$
57,853

 
$
20,686

 
$
—

 
$
78,539


The following methods and assumptions were used to estimate the fair value of each class of financial instrument.  There have been no changes in the valuation techniques used by us to value our financial instruments.

Cash and cash equivalents: Consists of cash on hand in bank deposits and highly liquid investments, primarily money market accounts.  The fair value was measured using quoted market prices in active markets and is classified as Level 1.  The carrying amount approximates fair value.

Restricted cash: Consists of cash and cash equivalents that are held in bank deposit accounts to secure issuances of foreign bank guarantees.  The fair value of cash equivalents was measured using quoted market prices in active markets and is classified as Level 1.  The carrying amount approximates fair value.

Certificates of deposit: Consists of time deposit accounts with original maturities of less than three years and various yields.  The fair value of these securities was measured based on valuations observed in less active markets that out Level 1 investments from a third party financial institution and is classified as Level 2.  The carrying amount approximates fair value.

U.S. Government securities:  Consists of U.S. Government treasury bills, notes, and bonds with original maturities of less than three years and various yields. The fair value of these securities was measured using quoted market prices in active markets and is classified as Level 1.
U.S. Government sponsored entities: Consist of Fannie Mae and Federal Home Loan Bank investment grade debt securities that trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis.  The fair value of these securities was measured based on valuations observed in less active markets then Level 1 investments and is classified as Level 2.  The contractual maturities of these investments vary from one month to three years.

Municipal obligations: Consist of investment grade municipal bonds that trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis.  The contractual maturities of these investments vary from two to three years.   The fair value of these bonds was measured based on valuations observed in less active markets then Level 1 investments and is classified as Level 2.

Derivatives – currency forward contracts: Consists of currency forward contracts that trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis.  The fair value of these securities was measured based on valuation from a third party bank and is classified as Level 2. See Note 14 for more information regarding our derivatives.
 
The fair value measurement standard also applies to certain non-financial assets and liabilities that are measured at fair value on a nonrecurring basis.  For example, certain long-lived assets such as goodwill, intangible assets and property, plant and equipment are measured at fair value in connection with business combinations or when an impairment is recognized and the related assets are written down to fair value.  We did not make any material business combinations or recognize significant impairment losses during fiscal 2012 or fiscal 2011.