v3.25.2
Fair Value Measurements
 3 Months Ended
Aug. 30, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements
Note 4 - Fair Value
 
Measurements
The Company
 
is required
 
to categorize
 
both financial
 
and nonfinancial
 
assets and
 
liabilities based
 
on the
 
following fair
 
value
hierarchy. The
 
fair value
 
of an
 
asset is
 
the price
 
at which
 
the asset
 
could be
 
sold in
 
an orderly
 
transaction between
 
unrelated,
knowledgeable, and willing
 
parties able to engage in
 
the transaction. A liability’s
 
fair value is defined
 
as the amount that would
be
 
paid
 
to
 
transfer
 
the
 
liability
 
to
 
a
 
new
 
obligor
 
in
 
a
 
transaction
 
between
 
such
 
parties,
 
not
 
the
 
amount
 
that
 
would
 
be paid
 
to
settle the liability with the creditor.
•
Level 1
 
- Quoted prices in active markets for identical assets or liabilities
•
Level 2
 
- Inputs
 
other than
 
quoted
 
prices included
 
in Level
 
1 that
 
are observable
 
for the
 
asset or
 
liability,
 
either
directly or indirectly,
 
including:
◦
Quoted prices for similar assets or liabilities in active markets
◦
Quoted prices for identical or similar assets in non-active markets
◦
Inputs other than quoted prices that are observable for the asset or liability
◦
Inputs derived principally from or corroborated by other observable market
 
data
•
Level 3
 
- Unobservable inputs for the asset or liability that are
 
supported by little or no market activity and that
 
are
significant to the fair value of the assets or liabilities
 
 
 
The disclosures of fair value of certain financial assets and liabilities that are recorded
 
at cost are as follows:
Cash and Cash Equivalents, Accounts Receivable, and Accounts Payable
 
The carrying amount approximates fair value due to the short maturity of these instruments.
Assets and Liabilities Measured at Fair
 
Value
 
on a Recurring Basis
In accordance with
 
the fair value hierarchy
 
described above, the
 
following table shows the
 
fair value of our
 
financial assets and
liabilities
 
that
 
are
 
required
 
to
 
be
 
measured
 
at
 
fair
 
value
 
on
 
a
 
recurring
 
basis
 
as
 
of
 
August
 
30,
 
2025
 
and
 
May
 
31,
 
2025
 
(in
thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
August 30, 2025
Level 1
Level 2
Level 3
Balance
Assets
Municipal bonds
$
—
$
22,140
$
—
$
22,140
Commercial paper
—
81,504
—
81,504
Corporate bonds
—
538,393
—
538,393
Certificates of deposits
—
4,968
—
4,968
US government and agency obligations
—
245,084
—
245,084
Treasury bills
—
109,386
—
109,386
Total assets measured at fair
 
value
$
—
$
1,001,475
$
—
$
1,001,475
Liabilities
Contingent consideration
$
—
$
—
$
21,500
$
21,500
Total liabilities measured
 
at fair value
$
—
$
—
$
21,500
$
21,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 31, 2025
Level 1
Level 2
Level 3
Balance
Assets
Municipal bonds
$
—
$
21,698
$
—
$
21,698
Commercial paper
—
90,830
—
90,830
Corporate bonds
—
431,508
—
431,508
Certificates of deposits
—
5,194
—
5,194
US government and agency obligations
—
240,395
—
240,395
Treasury bills
—
103,083
—
103,083
Total assets measured at fair
 
value
$
—
$
892,708
$
—
$
892,708
Liabilities
Contingent consideration
$
—
$
—
$
21,500
$
21,500
Total liabilities measured
 
at fair value
$
—
$
—
$
21,500
$
21,500
Investment securities – available-for-sale are all classified as Level 2 and consist of
 
securities with maturities of three months or
longer
 
when
 
purchased.
 
We
 
classified
 
these
 
securities
 
as
 
current
 
because
 
amounts
 
invested
 
are
 
readily
 
available
 
for
 
current
operations. Observable inputs for these securities are yields, credit risks, default
 
rates, and volatility.
Contingent consideration
 
classified as
 
Level 3
 
consists of
 
the potential
 
obligation to
 
pay an
 
earnout to
 
Fassio Egg
 
Farms, Inc.
(“Fassio”) contingent
 
on the
 
acquired
 
business meeting
 
certain return
 
on profitability
 
milestones over
 
a
three-year
 
period that
commenced on the
 
date of the acquisition
 
in the second
 
quarter of fiscal
 
2024. The fair
 
value of the
 
contingent consideration is
estimated using a discounted
 
cash flow model. Key assumptions
 
and unobservable inputs that require
 
significant judgment used
in the
 
estimate include
 
weighted average
 
cost of
 
capital, egg
 
prices, projected
 
revenue and
 
expenses over
 
the period
 
for which
the
 
contingent
 
consideration
 
is
 
measured,
 
and
 
the
 
probability
 
assessments
 
with
 
respect
 
to
 
the
 
likelihood
 
of
 
achieving
 
the
forecasted
 
projections. There
 
were
no
 
adjustments to
 
the fair
 
value of
 
contingent consideration
 
recorded in
 
the thirteen
 
weeks
ended August 30, 2025.