XML 57 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Marketable Securities
 3 Months Ended
May 31, 2014
Marketable Securities [Abstract]  
Marketable Securities
Marketable Securities
At May 31, 2014, the Company had investments in municipal bonds of $10.8 million; $0.6 million was current and $10.2 million was non-current. The Company’s wholly owned insurance subsidiary, Prism Assurance, Ltd. (Prism), holds all of the municipal bonds. Prism insures a portion of the Company’s workers’ compensation, general liability and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments, which are generally high-quality municipal bonds, for the purpose of providing collateral for Prism’s obligations under the reinsurance agreement. All of the Company’s fixed maturity investments are classified as “available for sale,” are carried at fair value and are reported as short-term available-for-sale securities or available-for-sale securities in the consolidated balance sheet.

The amortized cost, gross unrealized gains and losses, and estimated fair values of investments available for sale at May 31, 2014 and March 1, 2014, were as follows: 
(In thousands)
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated
Fair
Value
May 31, 2014
 
 
 
 
 
 
 
Municipal bonds
$
10,913

 
$
119

 
$
(234
)
 
$
10,798

Total investments
$
10,913

 
$
119

 
$
(234
)
 
$
10,798

March 1, 2014
 
 
 
 
 
 
 
Municipal bonds
$
11,719

 
$
94

 
$
(336
)
 
$
11,477

Total investments
$
11,719

 
$
94

 
$
(336
)
 
$
11,477



Available for sale securities with a fair value of $3.7 million have been in a continuous unrealized loss position for more than 12 months with unrealized losses of $0.2 million.

The Company tests for other than temporary losses on a quarterly basis and considers the unrealized losses indicated above to be temporary in nature. The Company intends to hold the investments until it can recover the full principal amount, and has the ability to do so based on other sources of liquidity. The Company expects such recoveries to occur prior to the contractual maturities.

The amortized cost and estimated fair values of investments at May 31, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. 
(In thousands)
Amortized Cost
 
Estimated Market Value
Due within one year
$
560

 
$
564

Due after one year through five years
2,398

 
2,435

Due after five years through 10 years
6,690

 
6,703

Due after 10 years through 15 years
1,250

 
1,081

Due beyond 15 years
15

 
15

Total
$
10,913

 
$
10,798



Gross realized gains and losses were not material during either of the first three-month periods of fiscal 2015 or 2014.