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Fair Value of Financial Instruments
 3 Months Ended
Aug. 04, 2019
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 measured at fair value on a recurring basis:
 
  Fair value measurements at August 4, 2019 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
 $ 6,920   N/A   N/A  $ 6,920 
Growth Allocation Fund
  213   N/A   N/A   213 
Moderate Allocation Fund
  130   N/A   N/A   130 
Other
  84   N/A   N/A   84 
 
  Fair value measurements at July 29, 2018 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
 $ 6,749   N/A   N/A  $ 6,749 
Large Blend Fund
  438   N/A   N/A   438 
Growth Allocation Fund
  180   N/A   N/A   180 
Moderate Allocation Fund
  117   N/A   N/A   117 
Other
  187   N/A   N/A   187 
 
 
  Fair value measurements at April 28, 2019 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
 $ 6,639   N/A   N/A  $ 6,639 
Growth Allocation Fund
  203   N/A   N/A   203 
Moderate Allocation Fund
  127   N/A   N/A   127 
Other
  112   N/A   N/A   112 
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 and Long-Term Investments - Held-To-Maturity
Our investments classified as held-to-maturity consisted of investment grade U.S. corporate bonds with maturities that ranged from 2 to 2.5 years, in which these bonds have since matured during the first quarter of fiscal 2020. These investments were classified as held-to-maturity as we had the positive intent and ability to hold these investments until maturity. Our held-to-maturity investments were recorded as either current or noncurrent in our Consolidated Balance Sheets, based on contractual maturity date in relation to the respective reporting period and recorded at amortized cost.
At April 28, 2019, and July 29, 2018, our held-to-maturity investments recorded at amortized cost totaled $5.0 million and $30.8 million, respectively. The fair value of our held-to-maturity investments at April 28, 2019 and July 29, 2018, totaled $5.0 million and $30.6 million, respectively.
Our U.S. corporate bonds were classified as level 2 as they were traded over the counter within a broker network and not on an active market. The fair value of our U.S. corporate bonds was determined based on a published source that provided an average bid price. The average bid price was based on various broker prices that were determined based on market conditions, interest rates, and the rating of the respective U.S. corporate bond.
Long-Term Investments - Rabbi Trust
We have a Rabbi Trust to set aside funds for participants of our deferred compensation plan (the “Plan”) which enables 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.
These long-term investments are recorded at their fair values of $7.3 million, $7.7 million, and $7.1 million at August 4, 2019, July 29, 2018, and April 28, 2019, respectively. Our long-term investments had an accumulated unrealized gain of $46,000, $104,000, and $40,000 at August 4, 2019, July 29, 2018, and April 28, 2019, respectively. The fair value of our long-term investments associated with our Rabbi Trust approximates its cost basis.
 
Other
The carrying amount of our 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.
Nonrecurring Basis
At July 29, 2018, we had no assets that were required to be measured at fair value on a nonrecurring basis other than the assets acquired from eLuxury (see note 3) that were acquired at fair value:
 
  Fair value measurements at July 29, 2018 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:
                
Goodwill
  N/A   N/A  $13,653  $13,653 
Tradename
  N/A   N/A   6,549   6,549 
Equipment
  N/A   N/A   2,179   2,179 
Inventory
  N/A   N/A   1,804   1,804 
Liabilities:
                
Contingent Consideration – Earn-Out Obligation
  N/A   N/A  $5,600  $5,600 
The tradename was recorded at fair market value using the royalty from relief method that used significant unobservable inputs and were classified as level 3. The contingent consideration – earn-out obligation was recorded at fair market value using the Black Sholes pricing model.
Additionally, we acquired certain current assets such as accounts receivable and prepaid expenses and assumed certain liabilities such as accounts payable and accrued expenses. Based on the nature of these items and their short maturity, the carrying amount of these items approximated their fair values. See note 3 for the final allocation of the acquisition cost to the assets acquired and liabilities assumed based on their fair values.