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Fair Value Measurement
 9 Months Ended
Jan. 28, 2012
Fair Value Measurement [Abstract]  
Fair Value Measurement
Note 9.  Fair Value Measurement

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.  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, consisting of level 1 inputs (using quoted prices in active markets for identical assets or liabilities); level 2 inputs (using inputs other than level 1 prices, such as quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability); and level 3 inputs (unobservable inputs supported by little or no market activity based on our own assumptions used to measure assets and liabilities).  A financial asset's or liability's classification within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The fair values for fixed-rate contracts receivable are estimated using discounted cash flow analyses 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.  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.

The following table sets forth by level within the fair value hierarchy our financial assets that were accounted for at fair value on a recurring basis at January 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 among the fair value hierarchies presented.


 
Fair Value Measurements
 
 
Level 1
  
Level 2
  
Level 3
  
Total
 
Balance as of January 28, 2012:
           
Cash and cash equivalents
$28,552  $-  $-  $28,552 
Restricted cash
 2,109   -   -   2,109 
Available-for-sale securities:
               
      Certificates of deposit
 -   5,433   -   5,433 
      U.S. Treasury Bills
 -   -   -   - 
      U.S. Government sponsored entities
 -   11,088   -   11,088 
      Municipal Bonds
 -   3,395   -   3,395 
Total assets measured at fair value
$30,661  $19,916  $-  $50,577 
Liabilities:
               
Derivatives - currency forward contracts
$-  $(99) $-  $(99)
                 
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. Treasury Bills
 1,999   -   -   1,999 
      U.S. Government sponsored entities
 -   13,617   -   13,617 
      Municipal Bonds
 -   2,414   -   2,414 
Total assets measured at fair value
$57,853  $20,944  $-  $78,797 
Liabilities:
               
Derivatives - currency forward contracts
$-  $(258) $-  $(258)
 
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 and is classified as Level 1.

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 from a third party financial institution and is classified as Level 2.  The carrying amount approximates fair value and is classified as Level 2.

U.S. Treasury Bills.  Consists of U.S. Government treasury bills 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 from a third party financial institution 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 from a third party financial institution 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.  Refer to Note 12, Derivative Financial Instruments, for more information regarding our derivatives.

The fair value measurement standard also applies to certain nonfinancial 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 enter into any material business combinations during the first nine months of fiscal 2012 or in fiscal 2011.  No material impairments of our long-lived assets were recognized during the first nine months of fiscal 2012 or in fiscal 2011.