Fair Value Measurement

9 Months Ended

Oct. 30, 2021

Fair Value Measurement

Fair Value Measurement

5. Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market at the measurement date. Fair value is established according to a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

Level 1:  Unadjusted quoted prices in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2:  Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3:  Unobservable inputs are used when little or no market data is available. Level 3 inputs are given the lowest priority in the fair value hierarchy.

As of October 30, 2021, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair Market
	Cost		Gains		Losses		Value
Short-term:
Corporate debt securities (Level 2)	$	28,676	$	—	$	(34)	$	28,642
Obligations of states and municipalities (Level 2)		6,786		—		(3)		6,783
	$	35,462	$	—	$	(37)	$	35,425

The amortized cost and fair market value of investment securities as of October 30, 2021 by contractual maturity are as follows (in thousands):

	Amortized		Fair Market
	Cost		Value
Mature in one year or less	$	35,462	$	35,425