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Fair Value of Financial Instruments
 9 Months Ended
Jan. 29, 2017
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
9. 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 measured at fair value on a recurring basis:

 
  
Fair value measurements at January 29, 2017 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:
                        
U.S. Corporate Bonds
   $ 
-
    
$
30,682
      
N/A
    
$
30,682
  
Premier Money Market Fund
    
4,888
      
N/A
      
N/A
      
4,888
  
Low Duration Bond Fund
    
1,073
      
N/A
      
N/A
      
1,073
  
Intermediate Term Bond Fund
    
739
      
N/A
      
N/A
      
739
  
Strategic Income Fund
    
598
      
N/A
      
N/A
      
598
  
Large Blend Fund
    
343
      
N/A
      
N/A
      
343
  
Growth Allocation Fund
    
113
      
N/A
      
N/A
      
113
  
Moderate Allocation Fund
    
83
      
N/A
      
N/A
      
83
  
Other
    
61
      
N/A
      
N/A
      
61
  

 
  
Fair value measurements at January 31, 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
   $ 
3,071
      
N/A
      
N/A
    
$
3,071
  
Low Duration Bond Fund
    
1,592
      
N/A
      
N/A
      
1,592
  
Intermediate Term Bond Fund
    
1,116
      
N/A
      
N/A
      
1,116
  
Strategic Income Fund
    
957
      
N/A
      
N/A
      
957
  
Limited Term Bond Fund
    
594
      
N/A
      
N/A
      
594
  
Large Blend Fund
    
254
      
N/A
      
N/A
      
254
  
Growth Allocation Fund
    
128
      
N/A
      
N/A
      
128
  
Mid Cap Value Fund
    
90
      
N/A
      
N/A
      
90
  
Other
    
47
      
N/A
      
N/A
      
47
  

 
  
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
  

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.

Short-Term Investments

At January 29, 2017, January 31, 2016, and May 1, 2016, our short-term investments totaled $2.4 million, $4.3 million, and $4.4 million, respectively, and consisted of short-term bond funds. Our short-term bond funds are recorded at their fair value, are classified as available-for-sale, and their unrealized gains or losses are included in other comprehensive income (loss). Our short-term bond investments had an accumulated unrealized loss totaling $68,000, $181,000, and $100,000 at January 29, 2017, January 31, 2016, and May 1, 2016, respectively. At January 29, 2017, January 31, 2016, and May 1, 2016, the fair value of our short-term bond funds approximated its cost basis.

Long- Term Investments - Held-To-Maturity

During the second quarter of fiscal 2017, management decided to invest approximately $31.0 million in investment grade U.S. Corporate bonds with maturities primarily ranging from 2 to 2.5 years. The purpose of this investment was to earn a higher rate of return on our excess cash located in the Cayman Islands. These investments are classified as held-to-maturity as we have the positive intent and ability to hold these investments until maturity. Our held-to-maturity investments will be recorded as either current or noncurrent on our Consolidated Balance Sheets, based on contractual maturity date and stated at amortized cost.

At January 29, 2017, our held-to-maturity investments totaled $30.8 million and consisted of U.S. Corporate bonds. The fair value of our held-to-maturity investments totaled $30.7 million.

Long-Term Investments - Rabbi Trust

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 a money market fund and various mutual funds that are classified as available for sale.

Our long-term investments are recorded at their fair value of $5.5 million, $3.6 million, and $4.0 million at January 29, 2017, January 30, 2016, and May 1, 2016, respectively. Our long-term investments had an accumulated unrealized gain of $11,000 at January 29, 2017 and an accumulated unrealized loss of $99,000 and $44,000 at January 31, 2016 and May 1, 2016, respectively. The fair value of our long-term investments associated with our Rabbi Trust approximates its cost basis.

Other
 
The carrying amount of cash and cash equivalents, accounts receivable, other current assets, accounts payable, and accrued expenses approximates fair value because of the short maturity of these financial instruments.