XML 58 R17.htm IDEA: XBRL DOCUMENT v2.4.1.9
Fair Value of Financial Instruments
 9 Months Ended
Feb. 01, 2015
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
10.  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 February 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:
                        
Limited Term Bond Fund
   $ 3,112       N/A       N/A     $ 3,112  
Intermediate Term Bond Fund
     2,188       N/A       N/A       2,188  
Low Duration Bond Fund
     2,084       N/A       N/A       2,084  
Premier Money Market Fund
     1,951       N/A       N/A       1,951  
Strategic Income Fund
     1,000       N/A       N/A       1,000  
Growth Allocation Fund
     63       N/A       N/A       63  
Other
     49       N/A       N/A       49  


   
Fair value measurements at January 26, 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
   $ 2,570       N/A       N/A     $ 2,570  
Low Duration Bond Fund
     2,069       N/A       N/A       2,069  
Intermediate Term Bond Fund
     1,612       N/A       N/A       1,612  

 
   
Fair value measurements at April 27, 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
     2,077       N/A       N/A       2,077  
Intermediate Term Bond Fund
     1,641       N/A       N/A       1,641  
Premier Money Market Fund
     755       N/A       N/A       755  
Other
     10       N/A       N/A       10  

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, 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 $8.4 million, $6.3 million and $6.3 million at February 1, 2015, January 26, 2014, and April 27, 2014, respectively. Our short-term bond funds had an accumulated unrealized loss totaling $66,000, $74,000, and $60,000 at February 1, 2015, January 26, 2014, and April 27, 2014, respectively. At February 1, 2015, January 26, 2014, and April 27, 2014, 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 investments in 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 $2.0 million and $765,000 at February 1, 2015 and April 27, 2014, respectively. 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, accrued expenses, and line of credit approximates fair value because of the short maturity of these financial instruments.

Nonrecurring Basis

During the nine months ended February 1, 2015, we did not have any financial assets that were required to be measured at fair value on a nonrecurring basis.

During fiscal 2014, we did not have any financial assets that were required to be measured at fair value on a nonrecurring basis other than the assets acquired from Bodet & Horst (see note 3) that were acquired at fair value.
 
   
Fair value measurements at April 27, 2014 and January 26, 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:
                        
Equipment
   $  -     $  890     $   -     $  890  
Non-compete Agreement
     -       -       882       882  
Customer Relationships
     -       -       868       868  

The equipment was classified as level 2 as the fair value was determined using quoted market prices from a third party. The non-compete was recorded at its fair value using a discounted cash flow valuation model that used significant unobservable inputs and was classified as level 3. The customer relationships were recorded at a fair value using a multi-period excess earnings valuation model that used significant unobservable inputs and was classified as level 3.