XML 38 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value of Financial Instruments
 12 Months Ended
May 01, 2016
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
13. 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 May 1, 2016 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
  
$
3,404
      
N/A
      
N/A
    
$
3,404
  
Low Duration Bond Fund
    
1,604
      
N/A
      
N/A
      
1,604
  
Intermediate Term Bond Fund
    
1,154
      
N/A
      
N/A
      
1,154
  
Strategic Income Fund
    
999
      
N/A
      
N/A
      
999
  
Limited Term Bond Fund
    
602
      
N/A
      
N/A
      
602
  
Large Blend Fund
    
289
      
N/A
      
N/A
      
289
  
Growth Allocation Fund
    
148
      
N/A
      
N/A
      
148
  
Mid Cap Value Fund
    
102
      
N/A
      
N/A
      
102
  
Other
    
82
      
N/A
      
N/A
      
82
  
                                 

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.
 
The fair value of the company’s long-term debt is estimated by discounting the future cash flows at rates currently offered to the company for similar debt instruments of comparable maturities.  At May 3, 2015, the carrying value of the company’s long-term debt was $2.2 million and the fair value was $2.3 million.
 
Nonrecurring Basis

During fiscal 2016 and 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 had no assets that are required to be measured at fair value on a nonrecurring basis other than the assets acquired from Bodet & Horst (see note 2) that were acquired at fair value.

Fair value measurements during fiscal 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 agreement 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 fair value using a multi-period excess earnings valuation model that used significant unobservable inputs and was classified as level 3.