Fair Value Measurements - Notes to Financial Statements

3 Months Ended

12 Months Ended

Apr. 29, 2017

Jan. 28, 2017

NOTE 7 – FAIR VALUE MEASUREMENTS:

The following tables set forth information regarding the Company’s financial assets and liabilities that are measured at fair value (in thousands) as of April 29, 2017 and January 28, 2017

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
		April 29, 2017	Assets		Inputs		Inputs
Description		April 29, 2017	Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	152,515	$	-	$	152,515	$	-
Corporate Bonds		24,852		-		24,852		-
U.S. Treasury Notes		802		802		-		-
Cash Surrender Value of Life Insurance		8,095		-		-		8,095
Asset-backed Securities (ABS)		1,562		-		1,562		-
Corporate Equities		751		751		-		-
Certificates of Deposit		100		100		-		-
Total Assets	$	188,677	$	1,653	$	178,929	$	8,095

Liabilities:
Deferred Compensation		(7,959)		-		-		(7,959)
Total Liabilities	$	(7,959)	$	-	$	-	$	(7,959)

The Company’s investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable governmental debt securities held in managed accounts with underlying ratings of A or better at April 29, 2017 and January 28, 2017. The state, municipal and corporate bonds have contractual maturities which range from two days to 30.0 years. The U.S. Treasury Notes and Certificates of Deposit have contractual maturities which range from five months to one year. These securities are classified as available-for-sale and are recorded as Short-term investments, Restricted cash and investments and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other comprehensive income.

Additionally, at April 29, 2017, the Company had $0.8 million of corporate equities and deferred compensation plan assets of $8.1 million. At January 28, 2017, the Company had $0.7 million of corporate equities and deferred compensation plan assets of $8.0 million. All of these assets are recorded within Other assets in the Condensed Consolidated Balance Sheets.

Level 1 category securities are measured at fair value using quoted active market prices. Level 2 investment securities include corporate and municipal bonds for which quoted prices may not be available on active exchanges for identical instruments. Their fair value is principally based on market values determined by management with assistance of a third-party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the pricing service using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other factors.

Deferred compensation plan assets consist of life insurance policies. These life insurance policies are valued based on the cash surrender value of the insurance contract, which is determined based on such factors as the fair value of the underlying assets and discounted cash flow and are therefore classified within Level 3 of the valuation hierarchy. The Level 3 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance funds. These funds are designed to mirror existing mutual funds and money market funds that are observable and actively traded. Cash surrender values are provided by third parties and reviewed for reasonableness by the Company.

The following tables summarize the change in fair value of the Company’s financial assets measured using Level 3 inputs as of April 29, 2017 and April 30, 2016 (dollars in thousands):


	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at January 28, 2017	$	7,973
Redemptions		-
Additions		-
Total gains or (losses)
Included in interest and other income (or changes in net assets)		122
Included in other comprehensive income		-
Ending Balance at April 29, 2017	$	8,095


	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at January 28, 2017	$	(7,649)
Redemptions		-
Additions		(125)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		(185)
Included in other comprehensive income		-
Ending Balance at April 29, 2017	$	(7,959)


	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at January 30, 2016	$	6,409
Redemptions		-
Additions		809
Total gains or (losses)
Included in interest and other income (or changes in net assets)		234
Included in other comprehensive income		-
Ending Balance at April 30, 2016	$	7,452


	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at January 30, 2016	$	(6,187)
Redemptions		-
Additions		(836)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		(290)
Ending Balance at April 30, 2016	$	(7,313)

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
		January 28, 2017	Assets		Inputs		Inputs
Description		January 28, 2017	Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	172,953	$	-	$	172,953	$	-
Corporate Bonds		25,329		-		25,329		-
U.S. Treasury Notes		1,206		1,206		-		-
Cash Surrender Value of Life Insurance		7,973		-		-		7,973
Asset-backed Securities (ABS)		2,951		-		2,951		-
Corporate Equities		722		722		-		-
Certificates of Deposit		100		100		-		-
Total Assets	$	211,234	$	2,028	$	201,233	$	7,973

Liabilities:
Deferred Compensation		(7,649)		-		-		(7,649)
Total Liabilities	$	(7,649)	$	-	$	-	$	(7,649)