RICHARDSON ELECTRONICS, LTD. Fair Value Disclosure
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11. |
FAIR VALUE MEASUREMENTS |
Investments measured at fair value as of May 28, 2022 and May 29, 2021 were as follows (in thousands):
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Level 1 |
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Level 2 |
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Level 3 |
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May 28, 2022 |
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CDs |
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$ |
5,000 |
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$ |
— |
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$ |
— |
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Total |
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$ |
5,000 |
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$ |
— |
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$ |
— |
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May 29, 2021 |
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CDs |
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$ |
— |
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$ |
— |
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$ |
— |
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Total |
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$ |
— |
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$ |
— |
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$ |
— |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Aug 1, 2022 | Showing above |
| 2021 | Aug 2, 2021 | |
| 2020 | Aug 3, 2020 | |
| 2019 | Aug 5, 2019 | |
| 2018 | Aug 2, 2018 | |
| 2017 | Jul 31, 2017 | |
| 2016 | Jul 29, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.