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.

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.

The following tables present information about assets measured at fair value on a recurring basis:

         
        Fair value measurements as of July 28, 2024, 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

6,823

N/A

N/A

6,823

Growth Allocation Mutual Funds

756

N/A

N/A

756

S&P 500 Index Fund

212

N/A

N/A

212

Moderate Allocation Mutual Fund

112

N/A

N/A

112

Other

140

N/A

N/A

140

         
        Fair value measurements as of July 30, 2023, 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

7,113

N/A

N/A

7,113

Growth Allocation Mutual Funds

585

N/A

N/A

585

S&P 500 Index Fund

120

N/A

N/A

120

Moderate Allocation Mutual Fund

52

N/A

N/A

52

Other

125

N/A

N/A

125

         
        Fair value measurements as of April 28, 2024, 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

6,910

N/A

N/A

6,910

Growth Allocation Mutual Funds

691

N/A

N/A

691

S&P 500 Index Fund

176

N/A

N/A

176

Moderate Allocation Mutual Fund

46

N/A

N/A

46

Other

182

N/A

N/A

182

We have a rabbi trust (the “Trust”) for the participants of our deferred compensation plan (the “Plan”), that enables participants to direct their contributions to various investment options under the Plan. The investments associated with the Trust consist of a money market fund and various mutual funds that are classified as available-for-sale.

As of July 28, 2024, our investments associated with the Trust totaled $8.0 million, of which $954,000 and $7.1 million were classified as short-term and long-term, respectively. As of July 30, 2023, our investments associated with the Trust totaled $8.0 million, of which $791,000 and $7.2 million were classified as short-term and long-term, respectively. As of April 28, 2024, our investments associated with the Trust totaled $8.0 million, of which $903,000 and $7.1 million were classified as short-term and long-term, respectively. The investments associated with the Trust had an accumulated unrealized gain of $198,000, $76,000, and $118,000 as of July 28, 2024, July 30, 2023, and April 28, 2024, respectively.

The fair value of our long-term investments associated with the Trust approximates their cost basis.

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