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Fair Value | 6 Months Ended
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Oct. 31, 2021
Fair Value Disclosures [Abstract] |
Fair Value | 10. Fair Value 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. 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. Recurring Basis The following tables present information about assets measured at fair value on a recurring basis:
|  | Fair value measurements as of October 31, 2021, using: |
|  | Quoted prices |  |  | Significant |  |  |  |  |  |
|  | in active |  |  | other |  | Significant |  |  |  |
|  | markets for |  |  | observable |  | unobservable |  |  |  |
|  | identical assets |  |  | inputs |  | inputs |  |  |  |
(amounts in thousands) |  | Level 1 |  |  | Level 2 |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Money Market Fund |  | $ | 8,351 |  |  | N/A |  | N/A |  | $ | 8,351 |
Bond Mutual Funds |  |  | 4,384 |  |  | N/A |  | N/A |  |  | 4,384 |
Inflation Protected Bond Mutual Funds |  |  | 2,975 |  |  | N/A |  | N/A |  |  | 2,975 |
Mortgage Securities Mutual Funds |  |  | 1,118 |  |  | N/A |  | N/A |  |  | 1,118 |
Large Cap Equity Mutual Funds |  |  | 694 |  |  | N/A |  | N/A |  |  | 694 |
Growth Allocation Mutual Funds |  |  | 449 |  |  | N/A |  | N/A |  |  | 449 |
Preferred Securities Mutual Fund |  |  | 282 |  |  | N/A |  | N/A |  |  | 282 |
U.S. Event Driven Equity Mutual Fund |  |  | 203 |  |  | N/A |  | N/A |  |  | 203 |
Moderate Allocation Mutual Fund |  |  | 88 |  |  | N/A |  | N/A |  |  | 88 |
Other |  |  | 201 |  |  | N/A |  | N/A |  |  | 201 |
|  | Fair value measurements as of November 1, 2020, using: |
|  | Quoted prices |  |  | Significant |  |  |  |  |  |
|  | in active |  |  | other |  | Significant |  |  |  |
|  | markets for |  |  | observable |  | unobservable |  |  |  |
|  | identical assets |  |  | inputs |  | inputs |  |  |  |
(amounts in thousands) |  | Level 1 |  |  | Level 2 |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Premier Money Market Fund |  | $ | 7,665 |  |  | N/A |  | N/A |  | $ | 7,665 |
Bond Mutual Funds |  |  | 5,462 |  |  | N/A |  | N/A |  |  | 5,462 |
Growth Allocation Mutual Funds |  |  | 255 |  |  | N/A |  | N/A |  |  | 255 |
Moderate Allocation Mutual Fund |  |  | 73 |  |  | N/A |  | N/A |  |  | 73 |
Other |  |  | 67 |  |  | N/A |  | N/A |  |  | 67 |
|  | Fair value measurements as of May 2, 2021, using: |
|  | Quoted prices |  |  | Significant |  |  |  |  |  |
|  | in active |  |  | other |  | Significant |  |  |  |
|  | markets for |  |  | observable |  | unobservable |  |  |  |
|  | identical assets |  |  | inputs |  | inputs |  |  |  |
(amounts in thousands) |  | Level 1 |  |  | Level 2 |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Premier Money Market Fund |  | $ | 7,879 |  |  | N/A |  | N/A |  | $ | 7,879 |
Bond Mutual Funds |  |  | 4,101 |  |  | N/A |  | N/A |  |  | 4,101 |
Inflation Protected Bond Mutual Funds |  |  | 722 |  |  | N/A |  | N/A |  |  | 722 |
Mortgage Securities Mutual Fund |  |  | 719 |  |  | N/A |  | N/A |  |  | 719 |
Growth Allocation Mutual Funds |  |  | 339 |  |  | N/A |  | N/A |  |  | 339 |
Moderate Allocation Mutual Fund |  |  | 86 |  |  | N/A |  | N/A |  |  | 86 |
Other |  |  | 111 |  |  | N/A |  | N/A |  |  | 111 |
Short-Term Investments – Available for Sale Our short-term investments classified as available for sale consisted of various types of bond and equity mutual funds and had an accumulated unrealized gain totaling $116,000 and $24,000 as of October 31, 2021 and May 2, 2021, respectively, and an unrealized loss totaling $29,000 as of November 1, 2020. Our short-term investments classified as available for sale were recorded at their fair values of $9.7 million, $5.5 million, and $5.5 million as of October 31, 2021, November 1, 2020, and May 2, 2021, respectively. As of October 31, 2021, November 1, 2020, and May 2, 2021, the fair value of our short-term investments classified as available for sale approximated their cost basis. Short-Term and Long-Term Investments - Held-To-Maturity Our investments classified as held-to-maturity consisted of investment grade U.S. corporate bonds, foreign bonds, and government bonds with remaining maturities of less than 4 years as of October 31, 2021. These investments were classified as held-to-maturity as we have the positive intent and ability to hold these investments until maturity. Our held-to-maturity investments were recorded as either current or noncurrent on our Consolidated Balance Sheets, based on the maturity date in relation to the respective reporting period, and were recorded at amortized cost. As of October 31, 2021, November 1, 2020, and May 2, 2021, our held-to-maturity investments recorded at amortized cost totaled $9.9 million, $5.8 million, and $4.3 million, respectively. The fair value of our held-to-maturity investments as of October 31, 2021, November 1, 2020, and May 2, 2021, totaled $9.9 million, $5.8 million, and $4.3 million, respectively. Our bond investments were classified as level 2 within the fair value hierarchy as they were traded over the counter within a broker network and not on an active market. The fair value of our bond investments 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 bond investment. Current Expected Credit Loses (“CECL”)- Available for Sale and Held-To-Maturity Investments As of October 31, 2021, November 1, 2020, and May 2, 2021, we did not record an allowance for credit losses related to our short-term available for sale or held-to-maturity investments, which are comprised of high-grade U.S. and foreign corporate bonds, U.S. Treasury bonds, and bond and equity mutual funds. We determined that our credit loss exposure was immaterial as we have experienced historically low unrealized losses and gains during past reporting periods. In addition, it is not our intention to sell, and it is not likely that we will be required to sell, our held-to-maturity investments before the recovery of their amortized cost basis. As of October 31, 2021, we reported an accumulated unrealized gain of $116,000 associated with our short-term investments classified as available for sale. As mentioned above, it is not our intention to sell nor is it likely that we will be required to sell, our held-to-maturity investments before the recovery of their amortized cost basis. Accordingly, we did not record any credit loss expense during the six-month period ending October 31, 2021. In addition, we did not record any credit loss expense during the six-month period ending November 1, 2020. Long-Term Investments - Rabbi Trust We have a rabbi trust for the participants of our deferred compensation plan (the “Plan”), that enables our participants to credit their contributions to various investment options of the Plan. The investments associated with the rabbi trust consist of a U.S. Government money market fund and various equity related mutual funds that are classified as available for sale. Our long-term investments associated with our rabbi trust are classified as available for sale and recorded at their fair values of $9.0 million, $8.1 million, and $8.4 million as of October 31, 2021, November 1, 2020, and May 2, 2021, respectively. The long-term investments associated with our rabbi trust had an accumulated unrealized gain of $169,000, $55,000, and $122,000 as of October 31, 2021, November 1, 2020, and May 2, 2021, respectively. The fair value of our long-term investments associated with our rabbi trust approximates their cost basis. Other The carrying amount of our cash and cash equivalents, accounts receivable, other current assets, accounts payable, and accrued expenses approximate their fair value because of the short maturity of these financial instruments. Nonrecurring Basis – Fourth Quarter of Fiscal 2021 During the three-month period ending May 2, 2021, we had assets and liabilities that were required to be measured at fair value on a nonrecurring basis that pertained to assets acquired and certain liabilities that were assumed in connection with the CIH business combination effective February 1, 2021. See Note 3 of the consolidated financial statements for further details regarding this business combination.
|  | Fair value measurements on February 1, 2021, using: |
|  | Quoted prices |  | Significant |  |  |  |  |  |  |  |  |
|  | in active |  | other |  |  | Significant |  |  |  |  |
|  | markets for |  | observable |  |  | unobservable |  |  |  |  |
|  | identical assets |  | inputs |  |  | inputs |  |  |  |  |
(amounts in thousands) |  | Level 1 |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Right of use assets |  | N/A |  |  | 2,544 |  |  | N/A |  |  | $ | 2,544 |
Equipment and leasehold improvements |  | N/A |  | N/A |  |  |  | 846 |  |  |  | 846 |
Inventory |  | N/A |  | N/A |  |  | 31 |  |  | 31 |
The fair value of our right of use assets was based on our analysis of a recent appraisal of annual lease rates per square foot for industrial buildings that are similar in nature and within the same locale. We believe the annual lease rates per square foot presented in our recent appraisal represent significant observable inputs and therefore the right of use assets were classified as level 2. Additionally, in connection with the CIH business combination effective February 1, 2021, we acquired cash, accounts receivable, and certain other current assets, and we assumed accounts payable. Based on the nature of these items and their short-term maturity, the carrying amount of these items approximated their fair values. See Note 3 of the consolidated financial statements for the final allocation of the acquisition cost to assets acquired and liabilities assumed based on their fair values.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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