Fair Value Measurements

6 Months Ended

Nov. 02, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is an exit price representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

Level 2 - Other inputs that are directly or indirectly observable in the marketplace.

Level 3 - Unobservable inputs that are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company measures the fair value of money market funds using Level 1 inputs. The Company’s certificates of deposit are classified as held-to-maturity securities as the Company intends to hold until their maturity dates. The certificates of deposit are valued using Level 2 inputs. Pricing sources may include industry standard data providers, security master files from large financial institutions, and other third-party sources used to determine a daily market value.

The following tables present the fair value of the financial instruments measured on a recurring basis as of November 2, 2024 and April 27, 2024 (in thousands).

	November 2, 2024
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	223,811	$	—	$	—	$	223,811
Certificates of deposit	—		5,728		—		5,728
Short-term investments:
Certificates of deposit	—		143,716		—		143,716
Total cash equivalents and short-term investments	$	223,811	$	149,444	$	—	$	373,255

	April 27, 2024
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	57,175	$	—	$	—	$	57,175
Short-term investments:
Certificates of deposit	—		343,061		—		343,061
Total cash equivalents and short-term investments	$	57,175	$	343,061	$	—	$	400,236

The carrying amount of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable and accounts payable, approximate their respective fair values because of their short maturities. As of November 2, 2024 and April 27, 2024, there were no unrealized losses or gains associated with the Company’s financial instruments.

Interest income recognized for the three and six months ended November 2, 2024 was $4.8 million and $10.6 million, respectively. Interest income recognized for the three and six months ended October 28, 2023 was $2.9 million and $5.5 million, respectively.