Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Fair Value

v3.20.2
Note 7 - Fair Value
 3 Months Ended
Jun. 27, 2020
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
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7
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Fair Value
 
Pursuant to the accounting guidance for fair value measurement and its subsequent updates, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy for inputs used in measuring fair value that minimizes the use of unobservable inputs by requiring the use of observable market data when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on active market data. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.  
 
The fair value hierarchy is broken down into the
three
input levels summarized below:
  
     
•  
Level 
1
  —Valuations are based on quoted prices in active markets for identical assets or liabilities and readily accessible by us at the reporting date. Examples of assets and liabilities utilizing Level
1
inputs are certain money market funds, U.S. Treasuries and trading securities with quoted prices on active markets.
  
   
•  
Level 
2
  —Valuations based on inputs other than the quoted prices in active markets that are observable either directly or indirectly in active markets. Examples of assets and liabilities utilizing Level
2
inputs are U.S. government agency bonds, corporate bonds, commercial paper, certificates of deposit and over-the- counter derivatives.
  
   
•  
Level 
3
  —Valuations based on unobservable inputs in which there are little or
no
market data, which require us to develop our own assumptions.
 
The carrying amounts of the Company's cash and cash-equivalents and line of credit approximate their fair values at each balance sheet date due to the short-term maturity of these financial instruments, and generally result in inputs categorized as Level
1
within the fair value hierarchy. The carrying value of the outstanding PFG Loan approximates the estimated aggregate fair value and classified with the loan host. The fair value estimate of the embedded equity forward is based on the closing price of the Company's common stock on the measurement date, the risk-free rate, the date of expiration, and any expected cash distributions of the underlying asset before expiration. The estimated fair value of the embedded equity forward represents a Level
2
measurement.
 
There were
no
assets measured at fair value on a recurring basis and there were
no
assets or liabilities measured on a non-recurring basis at
June 27, 2020
and
March 28, 2020.